World’s Top 10 Spirits Players Show Dynamic Expansion In Emerging Markets

Impact’s special report on the world’s top 10 spirits marketers reveals that, despite uncertain economic conditions around the globe, industry leaders are achieving growth by making bold moves in emerging markets and closer to home.

Diageo, whose total spirits sales now exceed 125 million cases after advancing by more than 3 million cases in each of the past two years, made three big emerging market plays in the first half of 2012. By purchasing an additional 10.6% stake in Vietnam-based spirits producer Halico in June, Diageo raised its stake in the company to 45.5%. Earlier in the year, Diageo completed a tender offer to gain full control of China’s premium baijiu player Sichuan Shuijingfang Co. And just before summer began, Diageo acquired one of Brazil’s top-selling spirits brands, Ypióca cachaça.

Meanwhile, Diageo archrival Pernod Ricard continues its rapid expansion in emerging markets. Pernod’s prowess in India, where it sold nearly 25 million cases of locally produced whisky last year, has shaken up the ranks of its portfolio: Indian whisky Royal Stag last year leapfrogged Absolut to become Pernod’s biggest-volume brand. Additionally, in 2011 the company’s Martell Cognac brand became the first imported spirit to sell more than 1 million cases in China.

Not all of the action has occurred in emerging markets. Beam Inc. has reversed a trend of lackluster results through impressive organic growth from brands like Jim Beam and Maker’s Mark and by adding fast-rising brands like Skinnygirl and Pinnacle (acquired in 2011 and 2012, respectively), two of the U.S. spirits market’s top performers. Beam’s spirits sales rose by 6.7% to 37.6 million cases in 2011.

The top spirits players’ activity shows no signs of slowing. Italy’s Gruppo Campari has significantly enhanced its position in North America and the Caribbean region with last week’s deal to acquire Jamaica-based Lascelles deMercado & Co. for $415 million. That deal will add annual spirits volumes of around 3 million cases to Campari’s portfolio, while bolstering its position in premium rum with the addition of the Appleton franchise.

For a full report on the world’s top 10 spirits marketers, see Impact’s September 1&15 issue.

Tagged : Beam Inc, Diageo, Gruppo Campari, Pernod Ricard, spirits

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