Liqueurs Get A Boost From The Rising Premium Import Segment

Liqueurs and cordials have been eking out modest overall growth in recent years, with declines in lower-priced labels offset by increasing interest in premium imported offerings. According to Impact Databank, the liqueurs category in the U.S. totals over 18 million cases, excluding flavored whiskies but including flavored brandy, bitters, anise and pastis, and spirits-based aperitifs.

Among the import leaders, Baileys has been enjoying solid gains lately, reaching 1.5 million cases last year on 6.5% growth, with its upswing continuing this year. The Diageo brand’s signature cream liqueur has been joined by seasonal and limited-edition offerings and flavor innovations like Pumpkin Spice and Strawberries and Cream. “As dessert and treating trends have gained popularity, Baileys has thrived as the ultimate go-to indulgence, because at its core Baileys is a real premium adult treat,” said Stacey Cunningham, brand director for Baileys and liqueurs at Diageo North America. The use of Baileys as a baking ingredient has lent a versatility that has served it well during Covid-19. “We’ll continue to tap into relevant and timely baking, desserts and treating trends to build upon our extremely strong brand awareness,” Cunningham said.

Pernod Ricard-owned Kahlúa has seen a turnaround recently. After several years of modest declines, the coffee liqueur grew 0.9% last year, advancing to 800,000 cases, and it saw “very dynamic” growth in the three months through September, Pernod noted. In October, Kahlúa added a Blonde Roast Style expression, made with medium roast coffee and suggested to be served with tonic or coconut water. “One of our biggest recent successes was the launch of the brand’s first ready-to-drink convenience offering, the Kahlúa Style Espresso Martini,” said Rima Sawaya, senior brand manager at Pernod Ricard. “The innovation uses a nitro widget that creates nitro-foam when you pour into a martini glass, just like a Guinness.”

French import Grand Marnier, from Campari America, has seen steady growth in recent years, hitting 525,000 cases in 2019, according to Impact Databank. This year the brand has battled tough conditions in the on-premise owing to the pandemic, but rose 3% in control states in the year-to-date. Campari America’s namesake label and portfoliomate Aperol have both enjoyed double-digits gains in control states so far this year, building on their strong momentum. Cointreau, from the Rémy Cointreau portfolio, has also been on the rise this year, boosted by the at-home cocktail occasion.

Among other imported liqueurs in the U.S., Disaronno International has seen solid results for its flagship Amaretto in control states in the year-to-date, and recently unveiled a global TV campaign, “The Endless Dolce Vita,” airing over the holiday season. Disaronno also has unveiled a nitro cold brew coffee cocktail under its Tia Maria brand. The 4% abv Tia Maria Iced Coffee Frappé debuted nationally in recent weeks, retailing at $11 a 4-pack of 12-ounce cans.

Jägermeister has increasingly looked to packaging and flavor innovations—such as smaller formats and a Cold Brew Coffee expression—and a number of them have proven successful, according to Charles Littlefield, vice president of brand marketing at Mast-Jägermeister US. Littlefield noted that depletion growth of 10-pack Mini Meisters is up over 40% following their 2018 launch and its 375-ml. CoolPack is appealing to consumers interested in sharing Jägermeister at picnics, beaches, and other outdoor venues.—Danny Sullivan

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