Exclusive: Top 25 Spirits Brands Advance By Nearly 5% In 2016, Reports Impact Databank

While both craft spirits and smaller high-end offerings from the big players are fast making headway, the U.S. market’s biggest spirits brands continue to drive growth. The market’s top 25 brands are on pace to advance by nearly 5% in 2016, according to Impact Databank, well ahead of projected 2.5% growth for the overall U.S. spirits market. These results basically mirror those of the past half-decade. The top 25 averaged 4.7% annual growth from 2010-2015, while the total market posted 2.4% yearly growth during that period.

The top 25’s impressive gains are occurring even though its two largest players aren’t keeping pace with the market’s expansion. In fact, Smirnoff and Bacardi—ranked number-one and number-two by volume, respectively—are both projected to lose share this year, even as the vast majority of the top 25 are on the rise. In all, 19 brands are on track to post growth, while three are in decline and another three are essentially flat. Though the top 25 accounts for less than 45% of the overall spirits category’s 221 million cases, it represents the vast majority of market growth.

Four top 25 brands are projected to achieve double-digit progress this year: New Amsterdam Vodka, Tito’s, Hennessy and Jameson.

While vodka’s growth has been slowing over the last few years, the category’s prevalence among the top 25 brands demonstrates its continuing strength. The list includes 10 vodka brands, while whisk(e)y also makes a solid showing with seven entries.

Meanwhile, the market’s premiumization trend remains strong. While the value tier (average price: $6.94 a 750-ml.) lost ground in Nielsen channels for the 52 weeks ending December 3 and the mid-price tier ($10.76 average) was up by less than 2% during the same period, the premium ($18.42 average) and ultra-premium ($36.52) segments thrived, with respective advances of 6.7% and 9.7%.

Impact is featuring a full report on the U.S. market’s Top 25 spirits brands in the upcoming January 1&15, 2017 issue.

News Briefs:

•Folio Fine Wine Partners is adding the wines of Spain’s Grupo Pesquera to its import portfolio, effective January 1. Led by Ribera del Duero pioneer Alejandro Fernández, Pesquera includes the properties of Tinto Pesquera and Condado de Haza (D.O. Ribera del Duero), El Vínculo (D.O. La Mancha) and Dehesa la Granja (Vino de la Tierra de Castilla y León). Except for El Vinculo, which produces the only oak-aged white wine in La Mancha, Pesquera focuses exclusively on Tempranillo. Its 11 wines range from $19 for Dehesa La Granja and El Vínculo, up to $145 for limited edition Tinto Pesquera Millenium. Pesquera’s Condado de Haza Ribera del Duero 2012 ($25) ranked 18th among Wine Spectator’s Top 100 wines for 2016. Folio’s Spanish portfolio also includes Fillaboa, Palacios Remondo and Vall Llach.

•Chicago-based Hart Davis Hart (HDH) raked in close to $49 million in 2016, making it the leading fine wine auction house in the U.S. HDH’s seventh and final auction of the year was held from December 15-17. The three-day event netted $9.5 million and was 100% sold, featuring a total of 4,320 lots. Highlights included three bottles of 2012 Romanée-Conti, Domaine de la Romanée-Conti sold for $33,460 (est. $24,000-$35,000); three bottles of 1985 Vosne-Romanée, Cros Parantoux, Henri Jayer sold for $28,680 (est. $20,000-$30,000); and six bottles of 1980 Clos de la Roche, Vieilles Vignes, Domaine Ponsot sold for $23,900 (est. $10,000-$15,000).

•After two decades of work on the part of winegrowers, France’s governing body for wine appellations, the Institut National des Appellations d'Origine (INAO), promoted the three Vaucluse villages of Suze-la-Rousse, Ste.-Cécile and Vaison-la-Romaine. Previously, wines from the three villages could be labeled Côtes du Rhône Villages. Now they can add their village names to that description. This will take effect with the 2016 harvest and affects only red wines. Wine Spectator has more. 

Craft Brewing and Distilling News:

•Delaware-based Dogfish Head has launched its beers in the New Mexico market, and is planning to enter four more states in 2017. Along with New Mexico—where Dogfish Head’s 60 Minute IPA, 90 Minute IPA, SeaQuench Ale, Flesh & Blood IPA, Namaste White, Indian Brown and others are now available—the craft brewer will expand to Minnesota, Missouri, Alabama and West Virginia in the coming year. With those launches, Dogfish Head’s distribution footprint will expand to a total of 35 states and Washington, D.C. Dogfish Head is the U.S. market’s 16th-largest craft brewer, according to the Brewers Association.

•Germany’s Brauhaus Riegele has partnered with New York distributor Sarene Craft Beer to enter the Empire State. Imported to the U.S. by LuxeBrands, the family-owned Bavarian craft brewer, located in Augsburg, dates back to 1386. Sarene will distribute Riegele’s Privat, Augustus, Speziator and Kellerbier beers throughout New York. Riegele’s brews are also currently available in Ohio, Indiana and Florida.

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