Spirits in Canada

PROSPECTS

Spirits overall remains relatively stagnant, albeit with ample growth opportunities

A rising consumer preference for wine over spirits and already high consumption of spirits were among the factors that led to the sustained weak growth or stagnation in spirits in the last 10 years. The weakness is particularly pronounced in major categories such as vodka, rum and liqueurs, although there are still a wide range of growth opportunities across spirits.

Craft movement develops in spirits

The craze over craft beer has increasingly spilled over into many other food and beverage products, including spirits. In 2017-2018, craft spirits seemed to establish critical mass, mirroring the early phase of the development in craft beer.

Uncertainty mounts over trade and legislation

2018 and 2019 were expected to be turbulent years for various industries, including alcoholic drinks, as legislation changes and trade friction posed mounting uncertainty for industry participants. Major changes in cannabis legislation finally came into effect in October 2018, and more are expected in the ensuing years.

COMPETITIVE LANDSCAPE

Diageo Canada and Corby Spirit & Wine continue to lead

The spirits category in Canada is relatively mature and consolidated. Diageo Canada and Corby Spirit & Wine, both with a wide range of offerings, remain the top two players, claiming nearly half of the total volume sales between them.

Craft spirits attracts a growing number of participants

Inspired by the success stories in craft beer, a growing number of participants are entering craft spirits. As such, the competition for channel distribution and shelf presence is intensifying, particularly in jurisdictions where liquor board stores play a critical role, and industry players continue to call for regulatory changes in cross-provincial sales and online sales.

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