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White Spirits - US - November 2013

Published By :

Mintel

Published Date : Nov 2013

Category :

Alcoholic Beverages

No. of Pages : 198 Pages


Vodka easily dominates the surveyed white spirit and RTD segments, both in volume sales and reported consumption. However, consumers are no longer loyal to one alcoholic beverage or another. Emphasis on craftsmanship, quality, and almost limitless flavor innovation should be leveraged by rum, tequila, gin, and RTD segments to bring in new drinkers both on- and off-premise.
Table of Content

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms

Executive Summary
The market
Figure 1: Total US sales and fan chart forecast of white spirits, at current prices, 2008-18
Vodka dominates white spirits volume sales, rum and tequila catching up
Figure 2: US volume sales of white spirits, by segment, 2013*
Category innovation not keeping pace with competitive alcoholic beverages
Figure 3: US alcoholic beverage launches, by white spirit and RTD subcategories, 2012-13*
The consumer
Young adults are most active across segments, vodka leads regardless of age
Figure 4: Consumption of white spirits and RTDs, by generation, August 2013
Trend toward cross-category consumption limits usage frequency
Figure 5: Frequency of white spirit and/or RTD consumption, August 2013
Brand is the strongest purchase influencer among white spirits segments
Figure 6: Top three important attributes influencing spirits purchases, by segment, August 2013
Flavor, price more likely to drive RTD purchase than brand
Figure 7: Top five important attributes influencing RTD purchases, August 2013
What we think

Issues and Insights
What can inspire more frequent consumption of white spirits and RTDs?
Issues
Insights
How can RTDs rebound from slumping sales?
Issues
Insights
What’s holding gin back from joining alcohol’s rising tide?
Issues
Insights

Trend Applications
Trend: Many Mes
Trend: Objectify
Mintel Futures: Old Gold

Market Size and Forecast – White Spirits
Key points
White spirits bask in alcohol’s surge, only gin unable to capitalize on rise
Figure 8: US volume sales of white spirits, 2008-13
Figure 9: US volume sales of white spirits, by segment, 2008-13
Market size in dollar sales
Figure 10: Total US sales and forecast of white spirits, at current prices, 2008-18
Figure 11: Total US sales and forecast of white spirits, at inflation-adjusted prices, 2008-18
Fan chart forecast
Figure 12: Total US sales and fan chart forecast of market, at current prices, 2008-18

Market Drivers
Key points
Three in 10 adults of legal drinking age do not drink or use alcohol
Figure 13: Consumption of alcohol, by gender and age, August 2013
Figure 14: Consumption of alcohol, by race and Hispanic Origin, August 2013
White spirits unused by just more than one quarter of alcohol users
Figure 15: Consumption of white spirits, by gender and age, August 2013
RTDs have highest rate of abstention with more than half of adults inactive
Figure 16: Consumption of RTDs, by gender and age, August 2013
White spirits, RTDs should find way to appeal to older adults
Figure 17: US population aged 21 or older, by age, 2008-18
Growth in Asian, Hispanic population could bring growth to spirits
Figure 18: US population aged 21 or older, by race and Hispanic origin, 2008-18
Figure 19: Consumption of white spirits, by race/Hispanic origin, August 2013
Figure 20: Consumption of RTDs, by race/Hispanic origin, August 2013

Competitive Context
People are curious about alcohol, but some prefer beer, wine to spirits
Figure 21: Reasons for not drinking spirits or RTDs, August 2013
Cross-category consumption limits frequency within spirits, RTDs
Figure 22: Frequency of consumption of spirits and RTDs, by category, August 2013

Leading Companies
Key points
Dominant players continue to shape white spirits, RTD cocktail market
Figure 23: Leading white spirits and prepared cocktail companies, by volume, 2011-12
Trendy tequila boosts Proximo Spirits performance
Value spirits increases volume sales for Sazerac, Heaven Hill
Wine companies enter spirits segment for stability, could shake up leaders

Brand Share – Vodka
Key points
Segment’s growth boosts many leading brands as line extensions dominate
Figure 24: Leading brands of vodka, by volume, 2011-12
Grey Goose, Ciroc appeal to young, Black vodka drinkers
Figure 25: Adult consumption of vodka, by brand, by gender and age, May 2012-June 2013
Figure 26: Adult consumption of vodka, by brand, by race/Hispanic origin, May 2012-June 2013
Annual additions of hundreds of vodka not slowing segment down
Figure 27: US vodka launches, 2008-13*
Pace of innovation places specific focus on vodka packaging designs

Brand Share – Rum
Key points
Complex flavors, new options reconfigure performance in rum segment
Figure 28: Leading brands of rum, by volume, 2011-12
Segment also rises from innovations, premium continues to influence
Figure 29: US rum launches, 2008-13*
After surging in vodka, sweet-inspired flavors come to rum
Flavored, aged rums connect with young, less affluent Hispanics
Figure 30: Adult consumption of rum, by brand, by Hispanic origin and age, May 2012-June 2013
Figure 31: Adult consumption of rum, by brand, by Hispanic origin and household income, May 2012-June 2013

Brand Share – Tequila
Key points
Diversification boosts segment volume sales at the sake of Jose Cuervo
Figure 32: Leading brands of tequila, by volume, 2011-12
Tequila launches increase in recent years, 2013 on pace to hit high point
Figure 33: US tequila launches, 2008-13*
Packaging designs help tequila brands stick out as variety increases
Smaller varieties connect with Hispanics, others stick with traditional
Figure 34: Adult consumption of tequila, by brands, by Hispanic origin and age, May 2012-June 2013

Brand Share – Gin
Key points
Flavored options, premium brands defy segment’s volume sales decline
Figure 35: Leading brands of gin, by volume sales, 2011-12
Segment caught between premium and value, an opportunity for mid-tier
Figure 36: Adult consumption of gin, by brand, by household income, May 2012-June 2013
Small batch a new focus for gin-makers, option for limited-edition offerings
Figure 37: US gin launches, 2008-13*

Market Size and Brand Share – RTDs
Key points
Market size
Figure 38: US volume sales of RTDs, 2008-13
Figure 39: US volume sales of RTD alcoholic beverages, by subsegment, 2008-13
Some FMBs poised for premium, while others must stay affordable
Figure 40: Consumption of flavored RTDs, by brand, by household income, May 2012-June 2013
Figure 41: Adult consumption of coolers, by brand, by gender and household income, May 2012-June 2013
Tropical cocktails, citrus flavors could retain Hispanics
Figure 42: Adult consumption of flavored ready-to-drink, non-cooler alcoholic beverages, by brand, by Hispanic origin and age, May 2012-June 2013
Cocktail culture sends RTD cocktail volume sales tumbling
Figure 43: Leading brands of packaged RTD cocktails, by volume, 2011-12
RTD Margaritas dominate pre-made segment, showcasing need to diversify
Figure 44: Adult consumption of prepared cocktail mixes with liquor, by brand, by age, May 2012-June 2013
Despite flavor frenzy, RTD launches on the decline
Figure 45: US flavored alcoholic beverage launches, 2008-13*
RTD innovations aim for higher-end drinkers, cocktail clutchers
Moscato madness comes to RTD segment with sweet wine coolers

Innovations and Innovators
Category innovation not keeping pace with competitive alcohol segments
Figure 46: US alcoholic beverage launches, by sub-category, 2012-13*
Hybrid launches increase spirits’ appeal to cross-category drinkers
Flavor innovations approach new territory with savory options
International innovations provide importable inspiration
Flavors
Packaging

Marketing Strategies
Figure 47: Measured ad spending by distilled spirits category, 2011-12
Figure 48: Measured media spending mix, by spirits category, 2012
On-premise offers fresh creations, intrigue to entice brand trial, connection
Theme: Inspiration
Jose Cuervo
Figure 49: Jose Cuervo “Have a Story” ad still, August 2013
Absolut
Figure 50: Absolut “Transform Today” ad still, September 2013
Theme: History
Captain Morgan
Figure 51: Captain Morgan “maidens” broadcast ad still, June 2013
Bacardi
Figure 52: Bacardi “Cuba Libre” broadcast ad still, May 2013
Theme: Quirky
Smirnoff Ice
Figure 53: Smirnoff Ice “Straight Primpin” broadcast ad still, July 2013
Mike’s Hard Lemonade
Figure 54: Mike’s Hard Lemonade “Hibachi” ad still, June 2013
Figure 55: Mike’s Hard Lemonade “Bowling” ad still, June 2013

Social Media
Key points
Social media metrics
Figure 56: Key social media metrics, October 2013
Market overview
Brand usage and awareness
Figure 57: Brand usage and awareness for selected white spirits brands, August 2013
Interaction with white spirits brands
Figure 58: Interaction with select white spirit brands, August 2013
Online conversations
Figure 59: Online mentions around select white spirit brands, by day, April 1-Sept. 30, 2013
Where are people discussing white spirit brands?
Figure 60: Online mentions around select white spirit brands, by page type, April 1-Sept. 30, 2013
What are people talking about?
Figure 61: Topics of discussion among the selected white spirit brands, April 1-Sept. 30, 2013
Figure 62: Topics of discussion among the selected white spirit brands, by day, April 1-Sept. 30, 2013
Figure 63: Topics of discussion among the selected white spirit brands, by page type, April 1-Sept. 30, 2013
Analysis by brand
Bacardi
Figure 64: Social media metrics – Bacardi, October 2013
Smirnoff
Figure 65: Social media metrics – Smirnoff, October 2013
Absolut
Figure 66: Social media metrics – Absolut, October 2013
Grey Goose
Figure 67: Social media metrics – Grey Goose, Oct. 2013
Jose Cuervo
Figure 68: Social media metrics – Jose Cuervo, October 2013
Tanqueray
Figure 69: Social media metrics – Tanqueray, October 2013

The Consumer – Spirits Usage and Preferences
Key points
Vodka leads surveyed white spirits segments, gin most in need of a boost
Figure 70: Consumption of white spirits, by age, August 2013
Premium spirits can appeal to range of incomes, depending on segment
Figure 71: Consumption of white spirits, by household income, August 2013
Tequila has strong connection in West, remaining spirits split in regions
Figure 72: Consumption of white spirits, by household income, August 2013
Favorite brand drives all white spirits purchases, but rum most of all
Figure 73: Important attributes influencing spirits purchases, August 2013
Imports more interesting among white spirits drinkers than craft spirits
Figure 74: Agreement with attitudes and behaviors toward spirits, by consumption of spirits and RTDs, August 2013

The Consumer – Spirits Drinking Occasions
Key points
White spirits most likely to be consumed a few times a month
Figure 75: Frequency of white spirits consumption, by gender and age, August 2013
Figure 76: Frequency of white spirits consumption, by consumption of dark spirits and RTDs, August 2013
Gin, vodka enjoy most frequent consumption among drinkers
Figure 77: Frequency of white spirits consumption, by consumption of white spirits, August 2013
Cater to older drinkers with promotion of weekday meal-time drinking
Figure 78: Locations, timing, and occasions of white spirits consumption, by gender and age, August 2013
Blacks more likely to drink white spirits at home to unwind
Figure 79: Locations, timing, and occasions of white spirits consumption, by race/Hispanic origin, August 2013
Tequila most popular on-premise, vodka and rum for weekend relaxation
Figure 80: Locations, timing, and occasions of dark spirits consumption, by consumption of white spirits, August 2013

The Vodka Consumer
Key points
Half of young women like flavored vodka, men want to know how it’s made
Figure 81: Important attributes influencing vodka purchases, by gender and age, August 2013
On-premise push could benefit vodka, which is strongest spirit at home
Vodka most likely to be mixed, but young men open to vodka on its own
Figure 82: Vodka consumption by preferred drink type, by gender and age, August 2013

The Rum Consumer
Key points
Rum could benefit from differentiation, especially among young women
Figure 83: Important attributes influencing rum purchases, by gender and age, August 2013
Half of women who drink rum choose cocktails, men prefer mixed drinks
Figure 84: Rum consumption by preferred drink type, by gender and age, August 2013
Light, spiced rum lead preferences, men more active in rum subsegments
Figure 85: Consumption of rum by type, by gender, August 2013
Youngest consumers of legal drinking age open to various rum types
Figure 86: Consumption of rum by type, by age, August 2013
Across household incomes, desire for flavor lifts spiced, dark rums
Figure 87: Consumption of rum by type, by gender and household income, August 2013
Dark spirits, RTD provide inspiration, new users for various rum types
Figure 88: Consumption of rum by type, by consumption of spirits and RTDs, August 2013
Dark rum buyers are more interested in process, premium than other types
Figure 89: Important attributes influencing rum purchases, by consumption of rum by type, August 2013

The Tequila Consumer
Key points
Tap into curiosity of young men to develop a relationship that can last
Figure 90: Important attributes influencing tequila purchases, by gender and age, August 2013
Anejo tequila takes bronze, as silver and gold appeal evenly to drinkers
Figure 91: Consumption of tequila by type, August 2013
Women an important market for expansion of gold tequila’s expansion
Figure 92: Consumption of tequila by type, by gender and age, August 2013
Tequila drinkers more likely to drink RTDs, dark spirits than white spirits
Figure 93: Consumption of tequila by type, by consumption of spirits and RTDs, August 2013
Income likely plays a role between shooting and sipping tequila
Figure 94: Tequila consumption by preferred drink type, by household income, August 2013
Figure 95: Tequila consumption by preferred drink type, by gender and household income, August 2013
Tequila more likely than other white spirits to be used with cocktail mixes
Education could help tequila become a more acceptable at-home drink

The Gin Consumer
Key points
Recommendations, ads most powerful in enticing younger drinkers
Figure 96: Important attributes influencing gin purchases, by age, August 2013
Figure 97: Important attributes influencing gin purchases, by gender, August 2013
Emphasize gin’s versatility in occasions to court new drinkers
Gin most consumed with a mixer, opportunity exists to promote premium
Figure 98: Gin consumption by preferred drink type, by gender, August 2013
Figure 99: Gin consumption by preferred drink type, by household income, August 2013

The RTD Consumer – Usage
Key points
RTDs have strongest connection among youngest legal drink age adults
Figure 100: Consumption of RTDs, by age, August 2013
Marketing should target time-pressed parents who want to unwind
Figure 101: Consumption of RTDs, by presence of children in household, August 2013
Cross-category consumption should serve as inspiration for new RTDs
Figure 102: Consumption of RTDs by consumption of white spirits, August 2013
Hispanics more interested in reduced-calorie RTDs than non-Hispanics
Figure 103: Adult consumption of coolers, by type, by Hispanic origin and age, May 2012-June 2013
Margarita, strawberry daiquiri lead preferred cooler and FMB flavors
Figure 104: Adult consumption of coolers, by flavor, May 2012-June 2013

The RTD Consumer – Preferences and Occasions
Key points
Young adults motivated by flavor, recommendations to choose RTDs
Figure 105: Important attributes influencing RTD purchases, by gender and age, August 2013
All-encompassing other race drinkers a major opportunity for RTDs
Figure 106: Important attributes influencing RTD purchases, by race, August 2013
Figure 107: Attitudes toward RTD alcoholic beverages, by race/Hispanic origin, August 2013
Men more likely than women to drink RTDs a few times a month or weekly
Figure 108: Frequency of RTD consumption, by gender and age, August 2013
On-premise venues should be a point of emphasis for expanding RTDs
Figure 109: Locations, timing, and occasions of RTD consumption, by gender and age, August 2013
Figure 110: Locations, timing, and occasions of RTD consumption, by Hispanic origin, August 2013
Women see RTDs as convenient, but would like more innovation
Figure 111: Attitudes toward RTD alcoholic beverages, by gender, August 2013

Appendix – Other Useful Consumer Tables
Market drivers
Figure 112: Alcohol consumption, by generation, August 2013
The consumer – Spirits preferences and attitudes
Figure 113: Consumption of white spirits, by generations, August 2013
Figure 114: Consumption of white spirits, by consumption of spirits and RTDs, August 2013
The Consumer – Spirits Drinking Occasions
Figure 115: Locations, timing, and occasions of white spirits consumption, by gender and household income, August 2013
The Vodka consumer
Figure 116: Important attributes influencing vodka purchases, by gender and household income, August 2013
Figure 117: Vodka consumption by preferred drink type, by gender, August 2013
The Rum consumer
Figure 118: Important attributes influencing rum purchases, by gender and household income, August 2013
Figure 119: Consumption of rum by type by consumption of rum by type, August 2013
Figure 120: Rum consumption by preferred drink type, by gender, August 2013
Figure 121: Rum consumption by preferred drink type, by gender and household income, August 2013
The Tequila consumer
Figure 122: Important attributes influencing tequila purchases, by gender, August 2013
Figure 123: Important attributes influencing tequila purchases, by gender and household income, August 2013
Figure 124: Consumption of tequila by type, by consumption of tequila by type, August 2013
Figure 125: Tequila consumption by preferred drink type, by gender, August 2013
Figure 126: Tequila consumption by preferred drink type, by gender and age, August 2013
The Gin consumer
Figure 127: Gin consumption by preferred drink type, by age, August 2013
The RTD consumer – Usage
Figure 128: Consumption of RTDs, by generations, August 2013
Figure 129: Consumption of RTDs, by household income, August 2013
Figure 130: Consumption of RTDs, by consumption of spirits and RTDs, August 2013
The RTD consumer – Preferences and occasions
Figure 131: Frequency of RTD consumption, by gender and household income, August 2013
Figure 132: Frequency of RTD consumption by consumption of spirits, August 2013
Figure 133: Locations, timing, and occasions of RTD consumption, by gender and household income, August 2013
Figure 134: Locations, timing, and occasions of RTD consumption, by consumption of spirits and RTDs, August 2013
Figure 135: Attitudes toward RTD alcoholic beverages, by gender and household income, August 2013
Figure 136: Attitudes toward RTD alcoholic beverages, by consumption of RTDs, August 2013

Appendix – Social Media
Brand usage or awareness
Figure 137: Brand usage or awareness, August 2013
Figure 138: Absolut usage or awareness, by demographics, August 2013
Figure 139: Bacardi usage or awareness, by demographics, August 2013
Figure 140: Grey goose usage or awareness, by demographics, August 2013
Figure 141: Smirnoff usage or awareness, by demographics, August 2013
Figure 142: Tanqueray usage or awareness, by demographics, August 2013
Figure 143: Jose Cuervo usage or awareness, by demographics, August 2013
Activities done
Figure 144: Activities done, August 2013
Figure 145: Absolut – Activities done, by demographics, August 2013
Figure 146: Bacardi – Activities done, by demographics, August 2013
Figure 147: Grey goose – Activities done, by demographics, August 2013
Figure 148: Smirnoff – Activities done, by demographics, August 2013
Figure 149: Tanqueray – Activities done, by demographics, August 2013
Figure 150: Jose cuervo – Activities done, by demographics, August 2013
Online conversations
Figure 151: Online mentions around select white spirit brands, by day, April 1-Sept. 30, 2013
Figure 152: Online mentions around select white spirit brands, by page type, April 1-Sept. 30, 2013
Figure 153: Topics of discussion among the selected white spirit brands, April 1-Sept. 30, 2013
Figure 154: Topics of discussion among the selected white spirit brands, by day, April 1-Sept. 30, 2013
Figure 155: Topics of discussion among the selected white spirit brands, by page type, April 1-Sept. 30, 2013

Appendix – Trade Associations

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