Fireball Paces Whisk(e)y Category, Continuing Its Growth Run
February 5, 2024While RTDs and Tequila have boomed the past few years, the whisk(e)y category has continued to churn forward, with overall volume nearing 59 million cases in 2023, excluding flavored offerings, up from 50 million cases in 2018, according to Impact Databank. Last year, however, many of the brand leaders saw declining volumes after several years of solid gains.
Top player Fireball was the exception, gaining 1.4% to 7.3 million cases, up from 5.2 million cases five years ago. Still, the cinnamon whisky’s growth rate slowed from its five-year average of 7% in 2023—a year in which parent company Sazerac revamped its distribution footprint, parting ways with RNDC in favor of a diversified profile featuring Breakthru, Johnson Brothers, Martignetti, Southern Glazer’s, and beer distribution giant Reyes. Sazerac also saw a leadership change at mid-year as company veteran Jake Wenz succeeded Mark Brown as CEO in June. By volume, Sazerac is second only to Diageo in the U.S. spirits market, with volume of approximately 33 million cases.
While it ranks second to Fireball by volume, Diageo’s Crown Royal is the largest whisk(e)y label in the U.S. in retail value terms, approaching $2.25 billion, including its flavored entries. Volume declined an estimated 3.4% to 7 million cases in 2023, including flavors but excluding RTDs, but is up by some 700,000 cases since 2018. In November, Crown Royal kicked off a new campaign behind its flagship Deluxe variant. “Consumers have told us that they don’t know enough about the brand,” explained Sally Grimes, who took the helm as CEO of Diageo North America on October 1. “So we’re investing in a marketing campaign that showcases what makes Crown Royal distinct.” On the new product front, Crown Royal launched a 30-year-old expression last fall, retailing at $500 a bottle. This year, the brand will introduce a new Blackberry flavor.
In the American whiskey segment, leading label Jack Daniel’s was down 4% to 6.5 million cases last year, including flavors but excluding RTDs like its Jack & Coke cocktail. After taking price on the core brand during the year, in the fall Brown-Forman launched a new “In the Moment” campaign behind Jack Daniel’s, which has U.S. retail value of approximately $1.8 billion, ranking fifth among all spirits labels. The brand has been active on the innovation front lately, with launches including a special Jack Daniel’s Tennessee Whiskey finished in Sherry casks ($42 a 375-ml.), a Tequila barrel-finished Tennessee whiskey ($42 a 375-ml.), and a new permanent extension, Jack Daniel’s Bonded Rye ($32 a 700-ml.).
Top American whiskey competitor Jim Beam saw a packaging update and a new ad push last year, with a global effort called “People are Good for You” set to Neil Diamond’s Sweet Caroline. Including flavors, Jim Beam was at 6 million cases in the U.S. last year, down 2% from the previous year but up by 700,000 cases since 2018. Parent company Beam Suntory begins 2024 under new leadership as veteran Greg Hughes officially ascended to the CEO role on October 1, succeeding Albert Baladi, who stepped down after a transformational five-year tenure as chief executive.
Heaven Hill’s Evan Williams saw volume slip 1% last year, but is up by 600,000 cases since 2018, to reach the 3.4-million-case mark, including flavors. Along with Elijah Craig, Larceny, and Heaven Hill Bottled in Bond, Evan Williams is at the core of Heaven Hill’s whiskey range. Heaven Hill’s capacity is set to increase significantly with the addition of a new distillery in Bardstown, Kentucky, which will be called Heaven Hill Springs.
Irish whiskey leader Jameson likewise declined by volume last year. Still, Jameson has added 600,000 cases to its total since 2018, sitting at 4.1 million cases in 2023 (including flavors but excluding RTDs), even as its average annual growth rate slowed to 3.2%, well below its previous rapid gains, as the base swelled. In November, Jameson received a new global campaign, “Must be a Jameson,” narrated by Irish actor Cillian Murphy and directed by Oscar-nominated writer-director Bryan Buckley.—Daniel Marsteller
| The Top 6 Whisk(e)y Brands In The U.S. Market (millions of 9-liter cases) |
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| Rank | Brand | Company | Origin/Type | 2022 | 2023E | Percent Change1 |
|---|---|---|---|---|---|---|
| 1 | Fireball | Sazerac Co | Canadian Whisky | 7.2 | 7.3 | 1.4% |
| 2 | Jack Daniel’s2 | Brown-Forman | Tennessee Whiskey | 5.4 | 5.1 | -5.3% |
| 3 | Jim Beam3 | Beam Suntory | Bourbon | 4.3 | 4.2 | -3.2% |
| 4 | Crown Royal4 | Diageo | Canadian Whisky | 3.9 | 3.8 | -4.5% |
| 5 | Jameson4 | Pernod Ricard | Irish Whiskey | 4.0 | 3.7 | -9.2% |
| 6 | Evan Williams5 | Heaven Hill | Bourbon | 3.1 | 3.1 | -0.5% |
| Total Top 6 | 28.0 | 27.1 | -3.2% | |||
| 1 Based on unrounded data 2 Includes Single Barrel, Bonded, Rye, Sinatra Select, and No. 27 Gold; excludes Gentleman Jack, Winter Jack, flavors, and RTDs 3 Includes Devil’s Cut, Jacob’s Ghost, and Rye; excludes Beam’s Eight Star, Red Stag, flavors, and RTDs 4 Excludes flavors and RTDs 5 Includes Black, Bottled in Bond, and 1783; excludes flavors and RTDs Source: IMPACT DATABANK © 2024 |
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Tagged : Beam Suntory, Brown-Forman, Crown Royal, Diageo, Evan Williams, Fireball, Heaven Hill, Jack Daniel's, Jameson, Jim Beam, Pernod Ricard, Sazerac
