Impact Databank: RTDs And Tequila Resilient As Spirits Market Slows
October 22, 2024As the U.S. spirits market continues to normalize post-pandemic, growth has slowed this year but will remain in positive territory, according to the 2024 edition of The U.S. Spirits Market: Shanken’s Impact Databank Review & Forecast. Total spirits volumes are expected to crest 300 million cases for the first time ever this year, marking the industry’s 29th consecutive annual gain. The spirits market is also expected to register another gain in dollar terms in 2024.
RTDs continue to provide a boost to the category in volume terms; excluding low-proof prepackaged cocktails, the spirits market actually declined 2.2% by volume last year, according to Impact Databank’s 280-page report. Tequila is another bright spot. While growth has slowed into the single-digits, agave-based spirits are expected to surpass vodka for the first time and become the industry’s largest category in dollar value terms by sometime next year.
Tequila marketers are investing in innovation to keep the momentum going. Jose Cuervo, the nation’s largest-selling Tequila, recently released Devil’s Reserve, a spicy-flavored 30% abv offshoot, retailing at a suggested price of $21 a 750-ml.
The market’s other top-ranked spirits also remain aggressive. Vodka leader Tito’s introduced a new 50-ml. 4-pack earlier this year, and also launched a Spokescart campaign, featuring an autonomous bar cart that delivers cocktails to drinkers in a series of ads. And last month, Bacardi announced a partnership with the Coca-Cola Company to bring a new spirits-based Rum & Coke cocktail to market, aiming to capitalize on the continued popularity of the ready-to-drink and ready-to-serve sectors.
Also notable is the expansion of Spirit of Gallo’s High Noon cocktails into the hard iced tea market, marking the first non-carbonated offering for the spirits-based RTD giant. High Noon is expected to outsell previous number-one spirits label Tito’s by a two-to-one margin in volume terms by year-end, according to Impact Databank.
For more information regarding The U.S. Spirits Market: Impact Databank Review & Forecast, 2024 Edition, as well as other exclusive Shanken reports and publications, visit impactdatabank.com.—Juan Banaag
| Top 10 Spirits Brands In The U.S., Excluding RTDs (millions of 9-liter cases) |
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| Rank | Brand | Company | Origin/Type | 2019 | 2024 | AACGR1 |
|---|---|---|---|---|---|---|
| 1 | Tito’s | Fifth Generation | Domestic Vodka | 8.8 | 12.8 | 7.8% |
| 2 | Smirnoff | Diageo NA | Domestic Vodka | 8.8 | 8.1 | -1.6% |
| 3 | Fireball | Sazerac Co | Canadian Whisky | 5.6 | 7.3 | 5.2% |
| 4 | Bacardi | Bacardi USA | Puerto Rican Rum | 6.6 | 6.2 | -1.2% |
| 5 | New Amsterdam | Spirit of Gallo | Domestic Vodka | 4.8 | 5.3 | 2.0% |
| 6 | Jack Daniel’s2 | Brown-Forman | Tennessee Whiskey | 5.3 | 4.9 | -1.8% |
| 7 | Jose Cuervo | Proximo Spirits | Tequila | 3.9 | 4.9 | 5.0% |
| 8 | Captain Morgan | Diageo NA | Virgin Islands Rum | 5.5 | 4.7 | -3.1% |
| 9 | Jim Beam2 | Suntory Global Spirits | Bourbon | 4.3 | 4.0 | -1.3% |
| 10 | Jameson | Pernod Ricard USA | Irish Whiskey | 3.7 | 3.8 | 0.6% |
| Total Leading Brands3 | 57.2 | 62.0 | 1.6% | |||
| 1 Average annual compound growth rate 2 Excludes flavors 3 Addition of columns may not agree due to rounding Source: The U.S. Spirits Market: Impact Databank Review & Forecast, 2024 Edition |
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Tagged : High Noon, Jose Cuervo, Tito's
