Control State Spirits Volume Up 8% Through September
November 5, 2020As the first three quarters of 2020 drew to a close, the full impact of the pandemic and the resulting recession have yet to be fully ascertained, but spirits volumes rose 18% during the month of September in the 18 control jurisdictions, according to the National Alcohol Beverage Control Association (NABCA), and 8% cumulatively for nine months, compared to just 3.7% growth for all of 2019. Some 11 control states posted double-digit gains year-to-date through September, including 14% growth for Michigan, 11% for Ohio and 13% for North Carolina, to more than offset the 12% decline in Pennsylvania. Michigan and Pennsylvania were the sixth- and seventh-largest spirits consuming states overall last year, according to Impact Databank.
All major spirits categories increased at double-digit rates in September in control states, led by American whiskies (+22%), brandy/Cognac (+35%), pre-mixed cocktails (+59%), Tequila (+40%) and Irish whiskey (+21%). Year-to-date, domestic whiskies (+12.5%), brandy/Cognac (+16%), pre-mixed cocktails (+43%) and Tequila (+20%) registered double-digit gains through September, according to NABCA. American whiskies have been propelled by super-premium Bourbon and flavors, while canned, ready-to-drink brands have catapulted pre-mixed cocktails. Super-premium growth has also driven Tequila’s rise, while Cognac is projected to surpass domestic brandy by year-end, according to Impact Databank.
Sazerac leads all spirits marketers in control states with a 16% share of volume for the first nine months of 2020, followed closely by Diageo, at nearly 15% share. The fastest-growing company among the top 10 in NABCA markets was Proximo Spirits, with a 26% rise through September, largely due to a 46% surge by Jose Cuervo Especial Silver Tequila. Other fast-growing top 10 brands year to-date in control states include Hennessy Cognac (+38%) and New Amsterdam vodka (+25%). Diageo is still far and away the leading spirits company in the U.S. overall, with nearly double the retail value of number-two Beam Suntory last year, according to Impact Databank.
| Top 10 Spirits Marketers in Control States, YTD Through September (millions of cases) |
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| Rank | Company | 2019 | 2020 | Percent Change1 |
|---|---|---|---|---|
| 1 | Sazerac2 | 6.03 | 6.37 | 5.7% |
| 2 | Diageo | 5.48 | 5.83 | 6.3% |
| 3 | Beam Suntory | 3.83 | 3.96 | 3.3% |
| 4 | Heaven Hill Brands | 3.41 | 3.51 | 2.9% |
| 5 | Pernod Ricard USA | 2.22 | 2.39 | 7.7% |
| 6 | Bacardi USA | 2.11 | 2.34 | 10.8% |
| 7 | Fifth Generation | 1.61 | 1.89 | 17.4% |
| 8 | Proximo Spirits | 1.36 | 1.72 | 26.2% |
| 9 | Brown-Forman | 1.59 | 1.70 | 7.4% |
| 10 | E.&J. Distillers3 | 1.21 | 1.41 | 16.9% |
| Total Top 104 | 28.85 | 31.12 | 7.9% | |
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1 Based on unrounded data
2 Includes 375 Park Ave and Gemini 3 Includes North Wales 4 Addition of columns may not agree due to rounding
Sources: NABCA and IMPACT DATABANK © 2020
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