Consumers Trading-Up to High-End Liquor
on 25/01/11 at 11:44 amIndustry
Consumers are starting to trade-up to pricier vodkas, whiskeys and other spirits, pushing up revenue for the liquor industry and possibly providing the industry with greater pricing power.
In its annual briefing on industry trends, the Distilled Spirits Council of the United States—or Discus—trade group said supplier volumes last year rose 2 percent to 190 million cases and revenue rose 2.3 percent to $19.1 billion from the prior year.
Sales trends in 2009 had showed the classic recessionary pattern of consumers trading down to less expensive brands, but sales in 2010 are starting to show consumers creeping back to brands priced at the upper-end of the price range, the so-called high-end and super-premium categories.
Discus Chief Economist David Ozgo expects the industry’s volume could rise about 2.5 percent in 2011, which is still below the industry’s average annual volume growth of 2.9 percent from 2000 to 2007.
“The recovery remains fragile,” said Discus CEO Peter Cressy.