American whiskey gains more fans overseas
Sales of US spirits are growing at home and internationally. Exports likely saw a third straight year of record growth in 2012.
The liquor industry appears to be unaffected by economic turmoil. Many people need a drink when times are bad, and they want to drink when they're prosperous. Fortunately, 2012 was a good year for U.S. distilled spirits -- which made significant progress both at home and overseas.
On Wednesday, the industry's trade association, the Distilled Spirits Council, announced overall U.S. supplier sales grew by a moderate 3% last year -- with supplier revenue up 4.5% as consumers gravitated to higher-end products.
"The premiumization trend continues to captivate consumers here in the U.S. and around the globe," said Peter Cressy, the Council's president and CEO, at its annual briefing.
Worldwide, sales of U.S. spirits have been good. The Council projects 2012 exports will soar to $1.5 billion in a third-straight year of record growth -- boosted by the continued appeal of top-shelf American whiskey to international consumers. Those U.S.-produced whiskeys make up nearly 70% of overall distilled spirits exports -- more than tripling U.S. beer exports and eclipsing wine exports by nearly $250 million.
Officials say policy changes, including recently reached free-trade agreements with South Korea, Panama and Colombia as well as a Permanent Normal Trade Relations accord with Russia, have also helped boost those export numbers. The growing number of middle-class consumers in Eastern Europe and Asia, Cressy says, has their own "cocktail culture," and these emerging markets are supplying American whiskeys with a new fan base.
The biggest U.S. spirits export market remains Canada, with nearly $200 million in sales last year, followed by Australia, the United Kingdom, Germany, France and Japan. But U.S. whiskey and other American-made liquors are making significant inroads in such Asian markets as China, India, Singapore, Vietnam and South Korea -- while showing strong growth in parts of South America and in Eastern European countries like Romania, Poland, Bulgaria and Latvia.
So-called craft distillers continue to grow in popularity, both overseas and domestically, to the point where the big companies are creating their own versions of craft brands.
"Any time you have an industry that is growing and is strong it allows the development of niche players. and that's what we're seeing with craft distillers," said David Ozgo, the council's chief economist, who notes the number of U.S. small-batch distillers -- who produce fewer than 100,000 bottles annually -- doubled between 2010 and 2012.
More on moneyNOW
That's great, now finally people the world over will now we've got something else that's an AMERICAN ORIGINAL!
The GOOD STUFF is back, as Al Capone used to say, only that was the label he put on an IOWA ICON, the best
Rye Whiskey made during that time, and it's back now after being out of circulation, TEMPLETON RYE which was
featured prominently on the counter in the HOUSE PARTY BAR SHOT in the 1st Part of 3 movies, Atlas Shurgged!
It was the only whiskey that made it to Chicago, hook line or sinker! And of course the only Alcohol that made it in to
the Famous Rock, Alchatraz! No, I don't work for the company or am I paid to endorse it, it just tastes good!
We saluted my dad on his final journey home, with my sister making the toast and her reaction was, with a slight
hoarse sound, "SMOOTH" Enjoy people!
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Recent action saw the S&P 500 (-0.3%) regain about eight points from its session low thanks, in part, to the relative strength of the three top weighted sectors. Financials (-0.2%), health care (+0.1%), and technology (-0.1%) trade ahead of the broader market and their relative strength is noteworthy considering the trio accounts for more than 46.0% of the entire market.
Meanwhile, consumer discretionary (-0.5%), industrials (-0.7%), and materials (-0.6%) continue ... More
More Market News
The US isn't strong enough not to care about them now. But one day it will be.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'