CATEGORIES BOOMING

BOURBON is predicted to be the fastest growing spirit category over the next five years, despite fears of a medium-term stock shortage. The category sold 37.8 million nine-liter cases in 2O14, up 22.8% during the last five years – driven by strong global consumer demand for brown spirits and flavored innovations. While sudden high demand for bourbon has prompted some distillers to issues warnings of stock shortages, producers are investing heavily in building new fermenting, distilling, maturation, and bottling facilities to ensure they meet continued demand in the future. While the rate of growth is predicted to slow down through 2O18, a new report by drinks trade show Vinexpo and the International Wine and Spirits Report (IWSR) predicts sales will still soar by 19.3% to 45m cases – the fastest rate of growth expected from any spirit category. Following close behind bourbon, with a predicted growth rate of 12.7%, is the Cognac and Armagnac category, which is expected to defy the that are hurting the category. Consumption of Cognac and Armagnac grew 11.1% in the last five years to 2O13, despite falling sales in China due to the country’s anti-extravagance measures The prediction is supported by recent findings from the Bureau National Interprofessionel du Cognac (BNIC), which show volume sales between August to December 2O14 are steady against the same period in 2O13. Also expected to deliver strong growth in the next five years is tequila, which is shedding its slammer image in favor of premiumization to appeal to a more “Millennial” consumer. The IWSR and Vinexpo predict consumption of tequila will grow by 11.7% between now and 2O18 to 3O.4m cases. The only two categories predicted to show declines in the next five years are rum (7.6%) and gin (-4.8%), both of which are a result of consumers in the Philippines and India switching to healthier, low calorie and more premium drinks.