100

Gin sales boom in EuropeWhiskey and cocktails spur US growthBrandy suppliers tackle turnaround challengeProsecco responds to global demandCraft drives US beer market

theIWSR.com | July 2015magazine

The REAL

The definitive top 100 global brands

spirits reviewChanges afoot in Real 100 listGuy Shingles analyses the fortunes of the world’s top 100 brands by volume in 2014

This month sees the publication of theIWSR’s annual Real 100 list of the world’slargest spirits brands by volume. Based onprimary research compiled using our uniqueand assiduous methodology, we believe itprovides the definitive picture of the topbrands in the global marketplace.

Given that the Real 100 brands account fornearly 27% of total spirits consumption, it isunsurprising that the list ultimately reflects thecomposition and trends of today’s complexmarket. The major spirits categories ofwhisk(e)y, vodka, brandy and rum are certainlywell represented, but so too are national spiritssuch as soju and cachaça. Similarly, while theongoing consolidation of the spirits marketensures that international powerhouses likeDiageo, Pernod Ricard and Bacardi featureprominently on the list, they sit alongsidenumerous local and regional players.

After seeing growth slow to a marginal 0.3%in 2013, the global spirits market actuallycontracted in 2014 for the first time since1999. A decline of -0.1%, or 3.1m cases,meant that total spirits consumption fell backto 3.08bn cases, according to the latest IWSRresearch. This was primarily due to weak

growth in theconsumption ofnational spirits, whichincreased by only 3.5%between 2013 and2014 compared with a2008-13 compoundannual growth rate(CAGR) of 9.4%.

Reversals in thefortunes of severalother categorieshave alsocontributed tothe decline intotal spirits,however.Followingconsecutiveyears of growth,brandy was flatin 2013 and fell -1.9% last year,while whisk(e)y’sgrowth rate hasalso slowedconsiderably to

2.8%. It is no coincidence that thesebeleaguered categories derive a high proportionof sales from emerging markets like China,India, Thailand, the Philippines, Ukraine andPoland, which have all registered a significantslowdown in overall spirits consumption inrecent years.

The decline in global spirits consumption ismirrored in this year’s Real 100 list, theaggregated volume of which fell -1.1% to827m cases versus the previous year. Thosebrandy and national spirits brands featured onthe list also reflected global trends quiteclosely, with combined 2013-14 volumegrowth of -0.9% and 1.9% respectively. Bycontrast, the story in whisk(e)y wassomewhat different, as the Real 100 brandsfar outstripped total category growth. This

strong performance will be examined inmore detail later in this article.

Leading brandsIn spite of developments at a global level,the situation remains relativelyunchanged at the top of the latest Real100 list. The top three brands are thesame as last year, with Hite Brewery’s

10 July 2015

*Shochu/soju brands are estimates. Excludes Chinese brands. All volumes in ’000s of 9-litre cases Source: The IWSR Database 2014 ©

Category Owner Volume Volume Volume % change2010 2013 2014 2014 on ‘13

Rank/Brand

Top 100 spirits brands worldwide: 1-25*

1. Jinro Shochu/Soju Hite 67,658.75 64,092.25 63,408.00 -1.12. Emperador Other brandy Alliance Global 10,000.00 31,950.00 32,900.00 3.03. Ruang Kao Other spirits Thai Beverage 30,000.00 30,870.00 31,300.00 1.44. Officer’s Choice Other whisk(e)y ABD 15,296.60 24,192.25 28,574.95 18.15. Smirnoff Vodka Diageo 24,542.57 25,604.18 25,697.51 0.46. McDowell’s Other whisk(e)y Diageo/USL 14,381.50 23,291.25 24,928.00 7.07. Chum Churum Shochu/Soju Lotte 15,676.00 21,085.00 21,000.00 -0.48. Hong Tong ‘Liquor’ Other spirits Thai Beverage 9,000.00 18,500.00 19,400.00 4.99. Johnnie Walker Scotch whisky Diageo 16,072.97 19,108.82 18,790.68 -1.710. Celebration Rum Diageo/USL 13,756.60 18,901.50 18,222.00 -3.611. Muhak Shochu/Soju Muhak 12,845.00 17,530.00 17,700.00 1.012. Bacardi Rum Bacardi 17,910.92 18,235.80 17,685.75 -3.013. Cachaça ‘51’ Cane Müller 19,452.53 17,738.81 16,995.27 -4.214. Royal Stag Other whisk(e)y Pernod Ricard 10,390.50 14,663.30 16,179.50 10.315. Imperial Blue Other whisk(e)y Pernod Ricard 6,105.00 10,987.30 14,061.80 28.016. Jack Daniel’s US whiskey Brown-Forman 10,301.88 13,064.73 13,703.00 4.917. Tanduay Rum Tanduay 13,730.00 12,725.00 12,120.00 -4.818. Kumbokju Shochu/Soju Kumbokju 11,069.00 11,300.00 11,500.00 1.819. Old Tavern Other whisk(e)y Diageo/USL 9,070.00 11,510.00 11,180.00 -2.920. Absolut Vodka Pernod Ricard 10,871.67 11,318.21 11,050.47 -2.421. Jun/Legend Shochu/Soju Takara Shuzo 12,888.00 11,308.00 11,000.00 -2.722. Captain Morgan Rum Diageo 8,906.15 10,559.31 10,615.71 0.523. Pitú Cane Pitú 10,078.95 10,483.57 10,594.47 1.124. Original Choice Other whisk(e)y John Distillers 10,600.00 10,010.00 10,560.00 5.525. Hayward Other whisk(e)y Diageo/USL 4,650.00 9,180.00 10,425.00 13.6

Soju brandJinro dwarfsits nearestcompetitorEmperadorbrandy in the Real 100 list

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Price List 2015