Premium Imports Drive The Liqueurs Category

While total spirits growth has slowed somewhat this year, the cordials and liqueurs sector is positioned for a promising year-end season as brand owners ramp up their efforts to promote on-premise celebrations and holiday gifting. Excluding flavored whiskies, cordials and liqueurs fell 2.2% in volume terms last year, according to The U.S. Spirits Market: Shanken’s Impact Databank Review & Forecast, 2023 Edition. But liqueurs priced at least $25 a 750-ml. bottle did much better and are projected to collectively crest five million 9-liter cases this year.

Two of the largest-selling imported liqueur brands in the $25 and over segment—orange-flavored Grand Marnier and Cointreau—continue to receive a boost due to their roles in the Margarita, which remains the most popular cocktail among Americans. Rémy-owned Cointreau has doubled its depletion volume in the past 10 years, while Grand Marnier has grown nearly 30% since being acquired by Campari in 2016, according to Impact Databank’s 275-page report. “The sales momentum on Cointreau has continued to be strong, and our dollar sales have grown nearly 6% versus last year, surpassing the growth of the total spirits and total cordials categories,” Nicolas Beckers, president and CEO, Rémy Cointreau Americas, told SND.

In addition to leveraging its role as a key Margarita component, Grand Marnier has also targeted the high end of the category with the launch of its Exceptional Range last year, which debuted with a Grand Cuvée called Quintessence. “Our Grand Cuvée portfolio is performing well in crucial markets such as Texas, California, and Florida,” said Andrea Sengara, head of marketing at Campari America.

Two other Campari labels—Aperol and Campari—have also benefited greatly from the cocktail consumption boom, both at-home and on-premise. The two brands have been riding high as American consumers have favored the Negroni and the Aperol Spritz, leading both labels to grow at double-digit rates in five of the past six years, according to Impact Databank.

Baileys is the world’s largest-selling liqueur at over eight million cases last year— according to Impact Databank—and the number-one import in the U.S. In September, Diageo launched Baileys Chocolate Liqueur, the brand’s newest permanent addition, made from Baileys Original Irish Cream and Belgian chocolate, and packaged in an opaque royal blue bottle. Baileys Chocolate was rolled out nationally, launching with a marketing campaign that includes 3-D out-of-home displays. “This is Bailey’s largest innovation launch to date and it’s already gained 13 basis points of share,” noted Diageo North America CEO Sally Grimes.

Other leading imported premium liqueurs on the rise this year include Disaronno’s namesake brand, Bacardi-owned St-Germain, and Licor 43 from Zamora Co. USA, with the latter two labels up by double-digits in control states in the year-to-date.

Among smaller premium imports, upstart Chinola Passion Fruit has grown steadily, and is projected to increase nearly 50% this year. The sustained demand for lower-abv beverages, as well as the continued renaissance of ’90s-era cocktails both on- and off-premise, are also providing a boon for premium liqueur imports.

For more information regarding The U.S. Spirits Market: Impact Databank Review & Forecast, 2023 Edition, as well as other exclusive Shanken reports and publications, visit impactdatabank.com. —Juan Banaag

Tagged : Baileys, chinola, Cointreau, Grand Marnier, Licor 43, liqueurs, St-Germain

GET YOUR FIRST LOOK AT 2025 ESTIMATES AND 2030 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2025 IMPACT DATABANK REPORTS. CLICK HERE.