Spirits in Uruguay

PRE-COVID-19 PERFORMANCE

Consumption decreases due to economic instability and a growing preference for quality over quantity in 2019

Spirits consumption decreased for a fourth consecutive year, triggered by economic instability throughout the country, and the high-price points of the products. In addition, the Zero Tolerance drink driving law has negatively impacted the on-trade consumption of spirits.

In 2019, whisky continues to drive sales, as Ferne Branca becomes a popular choice in bitters

Uruguay is ranked as one of the biggest consumers of whisky per capita globally. Traditionally, people of all ages and incomes in Uruguay have consumed whisky, and as such, whiskies are by far the largest area within spirits.

In 2019, international brands dominate as Diageo Uruguay leads spirits in Uruguay, with a strong position in whiskies

In 2019, Diageo Uruguay SA led overall spirits in total volume terms, offering a wide portfolio of world-class brands competing in multiple categories. However, its top spot was mainly thanks to its lead in whiskies, which is the most significant area by far, in terms of volume and value sales.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of spirits are expected to fall by 4% in 2020 in light of the impact of COVID-19. This compares to an expected 2% decline forecast for 2020 during research conducted in May 2019, before the spread of COVID-19.

Affected products within spirits

The closure of on-trade establishments and ongoing consumers cautious behaviour around socialising in public is expected to result in an on-trade volume decline for spirits in 2020, with all areas apart from Irish whiskey, set to decline. The most significant on-trade volume decline is predicted to be seen from other whiskies and English gin, with English gin having seen positive volume growth during the previous year.

Recovery and opportunities

On-trade volume growth for spirits is expected to decline in 2020, with on-trade establishments closing from March-May, due to COVID-19 restrictions. By 2021, on-trade volume growth is predicted to be positive for spirits, and growth will continue to increase year-on-year, across the forecast period.

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