Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: U.S. sales and fan chart forecast of white spirits and RTDs, at current prices, 2007-17
- Market factors
- Millennials highly engaged, indication of future growth
- Market segmentation
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- Figure 2: U.S. volume sales of white spirits and RTDs, by segment, 2010 and 2012
- Retail channels
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- Figure 3: Sales of white spirits and RTDs, by retail channel, 2007-12
- Innovation
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- Figure 4: White spirits and RTD launches, by top five claims, 2007-12*
- The consumer
- Nearly six in 10 consumers drink white spirits and/or RTDs
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- Figure 5: Type of white spirits and RTD beverages consumed in the past six months, by type, July 2012
- Category participation decreases with age
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- Figure 6: Type of white spirits and RTD beverages consumed in the past six months, by type and age, July 2012
- White spirits most often consumed with mixers
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- Figure 7: How white spirits are consumed, July 2012
- Hispanics are a strong target for category consumption
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- Figure 8: White spirits and RTD beverages consumed in the past six months, by type, by race/Hispanic origin, July 2012
- What we think
Issues in the Market
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- How can other white spirits segments match the success of vodka?
- How can the RTD segment grow market share?
- How can the category grow participation among older users?
Insights and Opportunities
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- Encourage gifting
- Guide consumers through brand range
- Branded drinking venues
Trend Applications
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- Trend: Immaterial World
- Trend: Home of the Senses
- Inspire 2015 Trend: Brand Intervention
Market Size and Forecast
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- Key points
- White spirits and RTD sales grow 12% from 2007-12
- Sales and forecast of white spirits and RTDs
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- Figure 9: Total U.S. sales and forecast of white spirits and spirits-based RTD cocktails, at current prices, 2007-17
- Figure 10: Total U.S. sales and forecast of white spirits and spirits-based RTD cocktails, at inflation-adjusted prices, 2007-17
- Figure 11: U.S. volume sales of white spirits and spirits-based RTD cocktails, 2007-12
- Fan chart forecast
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- Figure 12: U.S. retail sales and fan chart forecast of white spirits and RTDs, at current prices, 2007-17
Market Drivers
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- Key points
- Alcohol consumption dips
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- Figure 13: Reasons for changes in alcohol consumption at home, March 2012
- Improved consumer confidence may spell sales shift
- Product makers/marketers need to respond to consumer interest in health
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- Figure 14: U.S. obesity rate, by age, 2008 and 2012
- Capitalize on cocktail culture
- Millennials highly engaged
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- Figure 15: Population, by age, 2007-17
- Hispanic population growth should lead to sales growth
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- Figure 16: Population, by race and Hispanic origin, 2007-17
Competitive Context
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- Key points
- Wine and beer best white spirits, RTDs for in-home use
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- Figure 17: Alcoholic beverage consumption at home preferences, by gender, May 2012
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- Figure 18: Total U.S. sales and forecast of beer, at current prices, 2006-16
- Dark spirits find success in craft
Segment Performance
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- Key points
- Vodka sales drive growth in category
- Sales of white spirits and RTDs, by segment
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- Figure 19: U.S. volume sales of white spirits and RTDs, by segment, 2010 and 2012
Segment Performance—Vodka
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- Key points
- Vodka represents more than half of sales in the category, and is growing
- Sales of vodka
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- Figure 20: U.S. volume sales of vodka, 2007-12
- Figure 21: Vodka, April 2007-June 2012
Segment Performance—Rum
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- Key points
- Rum shows strong sales growth, helped by flavored offerings
- Sales of rum
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- Figure 22: U.S. volume sales of rum, 2007-12
Segment Performance—Tequila
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- Key points
- Tequila volume sales grow 17% from 2007-12
- Sales of tequila
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- Figure 23: U.S. volume sales of tequila, 2007-12
Segment Performance—Gin
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- Key points
- Gin struggles from 2010-12
- Sales of gin
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- Figure 24: U.S. volume sales of gin, 2007-12
Segment Performance—RTDs
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- Key points
- RTDs experience 5% volume sales decline from 2007-12
- Sales of RTDs
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- Figure 25: U.S. volume sales of spirits-based RTD cocktails, 2007-12
Retail Channels
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- Key points
- Off-premise sales of white spirits and RTDs outpace on-premise
- Sales of white spirits and RTDs, by channel
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- Figure 26: Total U.S. dollar sales of white spirits and RTDs, by channel, at current prices, 2010 and 2012
Retail Channels—On-Premise
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- Key points
- On-premise sales dipped by 6%, 2007-12, losses slowing
- On-premise sales of white spirits and RTDs
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- Figure 27: On-premise sales of white spirits and RTDs, 2007-12
Retail Channels—Off-Premise
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- Key points
- Off-premise sales show strong growth
- Off-premise sales of white spirits and RTDs
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- Figure 28: Off-premise sales of white spirits and RTDs, 2007-12
Leading Companies
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- Key points
- Category leaders
- Manufacturer sales of white spirits and RTDs
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- Figure 29: Leading white spirits/prepared RTD cocktail companies, by volume, 2010-11
- Figure 30: White spirits and RTD launches, by top 10 companies, 2007-12*
Social Media – White Spirits and RTDs
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- Key points
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- Figure 31: Key brand metrics, October 2012
- Options appeal to younger drinkers
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- Figure 32: Top ten alcoholic beverage flavor variants for gin, white rum, tequila, and vodka, Jun 1-Oct 31, 2012
- Brand usage and awareness
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- Figure 33: Brand usage and awareness, October 2012
- Brand satisfaction
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- Figure 34: Brand satisfaction, October 2012
- Interaction with brands
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- Figure 35: Interaction with brands, October 2012
- Motivations for interacting with brands
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- Figure 36: Why people interact with brands, October 2012
- White spirits category grows as consumers see more variety
- Online conversations
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- Figure 37: Percentage of consumer conversation, by white spirits brands, July 19-Sept. 19, 2012
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- Figure 38: Online mentions, by white spirits brands, by week, July 19-Sept. 19, 2012
- Where people are talking about white spirits brands?
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- Figure 39: White spirits brand mentions by page type, July 19-Sept. 19, 2012
- What are people talking about?
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- Figure 40: White spirits brand mentions by type of conversation, July 19-Sept. 19, 2012
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- Figure 41: Major areas of discussion, by date, July 19-Sept. 19, 2012
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- Figure 42: Major areas of discussion, by type of website, July 19-Sept. 19, 2012
- Analysis by brand
- Absolut
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- Figure 43: Absolut – key social media indicators, July 19-Sept. 19, 2012
- Key online campaigns
- What we think
- Bacardi
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- Figure 44: Bacardi – key social media indicators, July 19-Sept. 19, 2012
- Key online campaigns:
- What we think
- Grey Goose
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- Figure 45: Grey Goose– key social media indicators, July 19-Sept. 19, 2012
- Key online campaigns
- What we think
- Smirnoff
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- Figure 46: Smirnoff– key social media indicators, July 19-Sept. 19, 2012
- Key online campaigns
- What we think
- Patrón
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- Figure 47: Patrón– key social media indicators, July 19-Sept. 19, 2012
- Key online campaigns
- What we think
- Bombay Sapphire
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- Figure 48: Bombay Sapphire– key social media indicators, July 19-Sept. 19, 2012
- Key online campaigns
- What we think
- Daily’s Cocktails
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- Figure 49: Daily’s Cocktails– key social media indicators, July 19-Sept. 19, 2012
- Key online campaigns:
- What we think
Brand Share—Vodka
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- Key points
- Diageo dominates vodka segment
- Sazerac’s value brands soar
- More vodka brands, greater competition
- Sales of leading vodka brands
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- Figure 50: Leading brands of vodka, by volume, 2010-11*
- Brands of vodka consumed
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- Figure 51: Vodka consumption, by brand, April 2011-June 2012
Brand Share—Rum
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- Key points
- Bacardi continues rum domination
- Love for the Captain
- Rum adds spice and color
- Sales of leading rum brands
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- Figure 52: Leading brands of rum*, by volume, 2010-11
- Brands of rum consumed
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- Figure 53: Rum consumption, by brand, April 2011-June 2012
Brand Share—Tequila
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- Key points
- Jose leads the way
- Patrón keeps on growing
- Beam, Proximo win big in tequila market
- Sales of leading tequila brands
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- Figure 54: Leading brands of tequila*, by volume, 2010-11
- Brands of tequila consumed
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- Figure 55: Tequila consumption, by brand, April 2011-June 2012
Brand Share—Gin
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- Key points
- Pernod Ricard tops off gin market
- Tanqueray steals the consumer vote
- Champion seen in Bombay Sapphire
- Manufacturer sales of gin
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- Figure 56: Leading brands of gin*, by volume, 2010-11
- Brands of gin consumed
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- Figure 57: Gin consumption, by brand, April 2011-June 2012
Brand Share—RTDs
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- Key points
- Skinnygirl shines
- RTDs look for a comeback
- Sales of leading RTD brands
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- Figure 58: Leading brands of packaged RTD cocktails, by volume, 2010-11
- Brands of RTDs consumed
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- Figure 59: Flavored alcoholic beverages—non-coolers (ready-to-drink) consumed, by brand, April 2011-June 2012
- Figure 60: Prepared cocktail mixes with liquor, April 2011-June 2012
Innovations and Innovators
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- New product launch trends
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- Figure 61: White spirits and RTD launches, by launch type, 2007-12*
- Premium claim leads product launches
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- Figure 62: White spirits and RTD launches, by top 10 claims, 2007-12*
- Limited edition
- Flavor innovation
- Healthy drinker
- Stretching boundaries
- Other ways brands are standing out
- Overproof
- Organic
- Artisanal
Marketing Strategies
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- Overview of brand landscape
- Brand analysis: Smirnoff
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- Figure 63: Brand analysis of Smirnoff, 2012
- Online initiatives
- TV presence
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- Figure 64: Smirnoff TV ad, “Vodka & Dairy,” 2012
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- Figure 65: Smirnoff TV ad, “Human Cooler,” 2012
- Print and other
- Brand analysis: Bacardi
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- Figure 66: Brand analysis of Bacardi, 2012
- Online initiatives
- TV presence
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- Figure 67: Bacardi TV ad, “1957,” 2012
- Print and other
- Brand analysis: Patrón
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- Figure 68: Brand analysis of Patrón, 2012
- Online initiatives
- TV presence
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- Figure 69: Patrón TV ad, “Holiday Gift Guide,” 2012
- Print and other
- Brand analysis: Mike’s Hard Lemonade
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- Figure 70: Brand analysis of Mike’s Hard Lemonade, 2012
- Online initiatives
- TV presence
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- Figure 71: Mike’s Hard Lemonade TV ad, “Pirate’s Eye,” 2012
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- Figure 72: Mike’s Hard Lemonade TV ad, “Change Up,” 2012
Types of White Spirits and RTDs Consumed
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- Key points
- RTDs have stronger appeal among women
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- Figure 73: Type of white spirits and RTD beverages consumed in the past six months, by type, by gender, July 2012
- Category participation decreases with age
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- Figure 74: Type of white spirits and RTD beverages consumed in the past six months, by type, by age, July 2012
- Respondents from HHs earning $50K+ are the most likely users
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- Figure 75: Type of white spirits and RTD beverages consumed in the past six months, by type, by household income, July 2012
How White Spirits are Consumed
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- Key points
- Tequila most likely to be consumed straight, others with mixers
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- Figure 76: How white spirits are consumed, July 2012
- Spirits education may be in order
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- Figure 77: How white spirits are consumed (Nets), by price level of white spirits consumed, July 2012
- Cocktail promotion may resonate with women
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- Figure 78: How white spirits are consumed, by gender, July 2012
- Young drinkers can be lured with mixers, open to drinking straight
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- Figure 79: How white spirits are consumed, by age, July 2012
Reasons for Drinking White Spirits and RTDs
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- Key points
- Socializing, relaxing, and taste lead reasons for drinking
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- Figure 80: Reason for drinking white spirits and RTDs, by gender, July 2012
- Young Millennials drink to socialize and celebrate
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- Figure 81: Reason for drinking white spirits and RTDs, by age, July 2012
- Super-premium products fit a variety of occasions
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- Figure 82: Reason for drinking white spirits and RTDs, by price level of white spirits consumed, July 2012
Price Level of White Spirits Consumed
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- Key points
- Consumers appear willing to spend on white spirits
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- Figure 83: Price level of white spirits consumed, by type, July 2012
- Men are more likely the spend on higher-priced products
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- Figure 84: Price level of white spirits consumed, by gender, July 2012
- Young drinkers attracted to lower-priced products
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- Figure 85: Price level of white spirits consumed, by age, July 2012
- White spirits spend increases with household income
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- Figure 86: Price level of white spirits consumed, by household income, July 2012
Important Attributes When Selecting White Spirits and RTDs
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- Key points
- Consumers seek a low-risk point of entry
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- Figure 87: Important attributes when selecting white spirits/RTDs, by gender, July 2012
- New flavors/bottles resonate with young consumers
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- Figure 88: Important attributes when selecting white spirits/RTDs, by age, July 2012
- Higher-income HHs value professional recommendations
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- Figure 89: Important attributes when selecting white spirits/RTDs, by household income, July 2012
- RTD drinkers seek innovation, recommendations
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- Figure 90: Important attributes when selecting white spirits/RTDs, by type of white spirits and RTD beverages consumed in the past six months, July 2012
Attitudes and Behavior Toward RTDs
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- Key points
- Desire for control and freshness challenge RTDs
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- Figure 91: RTD attitudes and behaviors, by gender, July 2012
- Younger drinkers favor the guidance
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- Figure 92: RTD attitudes and behaviors, by age, July 2012
- Respondents from higher-income HHs pickier about RTDs
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- Figure 93: RTD attitudes and behaviors, by household income, July 2012
Impact of Race and Hispanic Origin
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- Key points
- Hispanics are a strong target for category consumption
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- Figure 94: Type of white spirits and RTD beverages consumed in the past six months, by type, by race/Hispanic origin, July 2012
- Hispanic outreach efforts should include the promotion of mixability
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- Figure 95: How white spirits are consumed, by race/Hispanic origin, July 2012
- Hispanic consumers favor quality beverages
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- Figure 96: Price level of white spirits consumed, by race/Hispanic origin, July 2012
- Promotion of parties
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- Figure 97: White spirits/RTD consumption by occasion and location, by race/Hispanic origin, July 2012
- Familiarity and price promotion resonate with Hispanic consumers
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- Figure 98: Important attributes when selecting white spirits/RTDs, by race/Hispanic origin, July 2012
Cluster Analysis
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- Cluster 1: Show Some Spirit
- Demographics
- Characteristics
- Opportunity
- Cluster 2: In Good Spirits
- Demographics
- Characteristics
- Opportunity
- Cluster 3: Unspirited
- Demographics
- Characteristics
- Opportunity
- Cluster characteristic tables
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- Figure 99: Target clusters, July 2012
- Figure 100: Type of white spirits and RTD beverages consumed in the past six months, by type, by target clusters, July 2012
- Figure 101: How white spirits are consumed, by target clusters, July 2012
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- Figure 102: Reason for drinking white spirits and RTDs, by target clusters, July 2012
- Figure 103: Price level of white spirits consumed, by target clusters, July 2012
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- Figure 104: White spirits/RTD consumption by occasion and location, by target clusters, July 2012
- Figure 105: Important attributes when selecting white spirits/RTDs, by target clusters, July 2012
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- Figure 106: White spirits attitudes and behaviors, by target clusters, July 2012
- Figure 107: RTD attitudes and behaviors, by target clusters, July 2012
- Cluster demographic tables
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- Figure 108: Target clusters, by demographic, July 2012
- Cluster methodology
Appendix—Other Useful Tables
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- Type of white spirits and RTD beverages consumed
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- Figure 109: Type of white spirits and RTD beverages consumed in the past six months, by type, July 2012
- Figure 110: Type of white spirits and RTD beverages consumed in the past six months, by type, by gender and age, July 2012
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- Figure 111: Type of white spirits and RTD beverages consumed in the past six months, by type, by marital/relationship status, July 2012
- How white spirits are consumed
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- Figure 112: How white spirits are consumed, by household income, July 2012
- Reason for drinking white spirits and RTDs
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- Figure 113: Reason for drinking white spirits and RTDs, by household income, July 2012
- Figure 114: Reason for drinking white spirits and RTDs, by type of white spirits and RTD beverages consumed in the past six months, by white spirits, July 2012
- Important attributes when selecting white spirits/RTDs
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- Figure 115: Important attributes when selecting white spirits/RTDs, July 2012
- Attitudes and behaviors toward white spirits
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- Figure 116: White spirits attitudes and behaviors, by gender, July 2012
- Figure 117: White spirits attitudes and behaviors, by age, July 2012
- Figure 118: White spirits attitudes and behaviors, by household income, July 2012
Appendix – Social Media –White Spirits and RTDs
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- Brand usage and awareness
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- Figure 119: Usage and awareness of the Bacardi brand, November 2012
- Figure 120: Usage and awareness of the Grey Goose brand, November 2012
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- Figure 121: Usage and awareness of the Smirnoff brand, November 2012
- Figure 122: Usage and awareness of the Absolut brand, November 2012
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- Figure 123: Usage and awareness of the Patrón brand, November 2012
- Figure 124: Usage and awareness of the Bombay Sapphire brand, November 2012
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- Figure 125: Usage and awareness of the Daily’s Cocktails brand, November 2012
- Brand satisfaction
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- Figure 126: Satisfaction with the Bacardi brand, November 2012
- Figure 127: Satisfaction with the Grey Goose brand, November 2012
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- Figure 128: Satisfaction with the Smirnoff brand, November 2012
- Figure 129: Satisfaction with the Absolut brand, November 2012
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- Figure 130: Satisfaction with the Patrón brand, November 2012
- Figure 131: Satisfaction with the Bombay Sapphire brand, November 2012
- Interaction with brands
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- Figure 132: Interaction with the Bacardi brand, November 2012
- Figure 133: Interaction with the Grey Goose brand, November 2012
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- Figure 134: Interaction with the Smirnoff brand, November 2012
- Figure 135: Interaction with the Absolut brand, November 2012
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- Figure 136: Interaction with the Patrón brand, November 2012
- Motivations for interacting with brands
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- Figure 137: Reason for interaction with the Bacardi brand, November 2012
- Figure 138: Reason for interaction with the Grey Goose brand, November 2012
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- Figure 139: Reason for interaction with the Smirnoff brand, November 2012
- Figure 140: Reason for interaction with the Absolut brand, November 2012
- Online conversations
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- Figure 141: Percentage of consumer conversation, by white spirits brand, July 19-September 19, 2012
- Figure 142: Online mentions, by white spirits brand, by week, July 19-September 19, 2012
- Where people are talking about white spirits brands
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- Figure 143: White spirits brand mentions by page type, July 19-September 19, 2012
- What are people talking about?
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- Figure 144: Percentage of top flavors in beverages category
- Figure 145: White spirits brand mentions by type of conversation, July 19-September 19, 2012
- Figure 146: Major areas of discussion, by type of website, July 19-September 19, 2012
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- Figure 147: Major areas of discussion, by type of website, July 19-September 19, 2012
Appendix—Trade Associations
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