Canadian Whisky Gets A Boost From Flavors
December 13, 2024While the traditional Canadian whisky category continues to decline, the flavor segment is providing better returns, as marketers continue to leverage innovation to reach new audiences. Proposed tariffs notwithstanding, Canadian whisky consumption is once again expected to decline this year, according to the 2024 edition of The U.S. Spirits Market: Shanken’s Impact Databank Review & Forecast. Excluding flavors, Canadian whisky depletions in the U.S. fell below 12 million cases last year, the lowest level since the 1960s. This year, flavors are projected to surpass non-flavored Canadian whisky for the first time ever.
In dollar terms, Crown Royal remains the largest-selling Canadian whisky brand at over $2 billion in U.S. retail value, primarily due to its flavored portfolio—and brand owner Diageo continues to innovate and increase share. Last year, growth came from its Salted Caramel flavor, and in 2024, the category has received a major boost from the launch of Crown Royal Blackberry ($27 a 750-ml.). Year-to-date through November 30, Blackberry has sold over 350,000 9-liter cases in NIQ/Nielsen channels alone. Aside from Blackberry, Diageo also added a Single Malt ($55) to its Crown Royal franchise earlier this year, and the brand recently received a revamped bottle and label.
“Our goal is to be the flavored whisky category leader,” Crown Royal national brand ambassador Stephen Wilson told SND. “One-fifth of all whisky consumers in the U.S. drink flavored whisky. Right now, we’re confident in the equity we’re building for Blackberry and our other flavored offerings.”
Sazerac’s Fireball—the fourth-largest-selling spirit overall in the U.S. by volume—will continue to account for two-thirds of the flavored Canadian whisky market this year, according to Impact Databank. Fireball has slowed down markedly the past few years, but has still tripled in size since 2013. Last year, Sazerac launched barrel-aged Fireball Dragon Reserve and it has since become an ongoing release. The cinnamon-flavored whisky had also previously introduced malt- and wine-based offshoots in various markets, propelling the Fireball brand into thousands of new retail accounts.
Proximo Spirits’ Pendleton brand has bucked the Canadian whisky category’s long-term decline, and has nearly doubled to more than half a million cases since 2017, according to Impact Databank. 2017 was when Casa Cuervo acquired Pendleton whisky from Hood River Distillers, and the brand has posted consistent, impressive increases since then. Among non-flavored Canadian whiskies last year, Pendleton was the only one among the 10 largest-selling brands to register volume growth in the U.S. This year, the brand unveiled a new national advertising campaign, “Let ‘er buck,” to keep up the momentum.
| Canadian Whisky—Key Brands in the U.S. | ||||||
| Brand1 | Importer | Total 2023 U.S. Volume2 |
Off-Premise Volume Growth 2024 YTD3 |
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|---|---|---|---|---|---|---|
| Fireball | Sazerac Co. | 7,225 | -3.1% | |||
| Crown Royal | Diageo North America | 6,950 | 9.6% | |||
| Black Velvet | Heaven Hill Brands | 1,524 | -8.2% | |||
| Canadian Club | Suntory Global Spirits | 945 | -6.2% | |||
| Pendleton | Proximo Spirits | 522 | 1.4% | |||
| Total Canadian Whisky1 | 21,600 | -0.9% | ||||
| 1 Includes flavors. 2 Thousands of 9-liter case depletions.
3 Year-to-date ending 11/30/2024 in NIQ/Nielsen channels.
Source: NIQ/Nielsen & IMPACT DATABANK © 2024
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