Global market review of liqueurs forecasts to 2012 2008 edition
Page i Global market review of liqueurs forecasts to 2012 2008 edition By The IWSR/just-drinks July 2008 Published by Aroq Limited Seneca House Buntsford Park Road Bromsgrove Worcestershire B60 3DX United Kingdom Tel: +44 (0)1527 573 600 Fax: +44 (0)1527 577 423 Web: www.just-drinks.com Registered in England no: 4307068
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Page iv Table of contents Table of contents Single-user licence edition... ii Copyright statement... ii Incredible ROI for your budget single and multi-user licences... ii just-drinks.com membership...iii Table of contents... iv List of figures... vi List of tables... vii Notes about the data... ix Executive summary... 1 Chapter 1 Scope of the market... 2 Market in transition... 2 Role of cocktails... 4 Performance by segment... 7 Industry structure... 10 Chapter 2 The major markets... 11 The Americas... 11 United States... 12 Canada... 15 Mexico... 17 Rest of Americas... 18 Argentina... 19 Brazil...20 Europe... 21 Germany... 23 Spain... 25 France... 27 United Kingdom... 30 Italy... 32 The Netherlands... 35 Russia... 37 Asia... 38 Japan... 39 Travel retail... 43 Chapter 3 Companies... 49 Diageo (Baileys)... 51 Pernod Ricard (Malibu, Kahlúa, Hiram Walker Liqueurs, Tia Maria)... 51
Page v Table of contents Rémy Cointreau (Cointreau)... 53 Lucas Bols...53 Beam Global (De Kuyper)... 56 Marnier-Lapostolle (Grand Marnier)... 57 Brown-Forman (Southern Comfort)... 59 Heaven Hill (Hpnotiq)... 60 L&L/Kobrand (Alizé)... 61 Distell (Amarula)... 62
Page vi List of figures List of figures Figure 1: Company shares in United States liqueurs market by 2007 volume (%)... 12 Figure 2: Company shares in Canadian liqueurs market by 2007 volume (%)... 15 Figure 3: Company shares in German liqueurs market by 2007 volume (%)... 23 Figure 4: Company shares in Spanish liqueurs market by 2007 volume (%)... 25 Figure 5: Company shares in French liqueurs market by 2007 volume (%)... 27 Figure 6: Company shares in UK liqueurs market by 2007 volume (%)... 30 Figure 7: Company shares in Italian liqueurs market by 2007 volume (%)... 32 Figure 8: Company shares in The Netherlands liqueurs market by 2007 volume (%)... 35 Figure 9: Company shares in Japanese liqueurs market by 2007 volume (%)... 39 Figure 10: Company shares in travel retail liqueurs market by 2007 volume (%)... 43
Page vii List of tables List of tables Table 1: Global liqueurs volume by segment, 2002-2012 ('000s nine-litre cases)... 7 Table 2: North America liqueurs volume by segment, 1997-2007 ('000s nine-litre cases)... 11 Table 3: Top ten liqueurs brands in United States by volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 13 Table 4: Top ten liqueurs brands in Canada by volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 16 Table 5: Rest of Americas liqueurs volume by segment, 1997-2007 ('000s nine-litre cases)... 18 Table 6: Europe liqueurs volume by segment, 1997-2007 ('000s nine-litre cases)... 21 Table 7: Top ten liqueurs brands in Germany by volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 23 Table 8: Top ten liqueurs brands in Spain by volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 25 Table 9: Top ten liqueurs brands in France by volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 28 Table 10: Top ten liqueurs brands in United Kingdom by volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 30 Table 11: Top ten liqueurs brands in Italy by volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 33 Table 12: Top ten liqueurs brands in The Netherlands by volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 35 Table 13: Asia liqueurs volume by segment, 1997-2007 ('000s nine-litre cases)... 38 Table 14: Top ten liqueurs brands in Japan by volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 40 Table 15: Travel retail liqueurs volume by segment, 1997-2007 ('000s nine-litre cases)... 43 Table 16: Top ten liqueurs brands in travel retail by volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 45 Table 17: Global top ten companies by liqueurs volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 49
Page viii List of tables Table 18: Global top ten brands by liqueurs volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s)... 50
Page ix Notes about the data Notes about the data Where - or a blank table cell appears in The IWSR data tables, this indicates no sales recorded by The IWSR. When 0.0 precedes - in previous years, this indicates that the brand had not yet been launched in the year(s). There may be some cases where low sales are registered as 0.0 due to rounding. Unless otherwise specified, all data quoted in this report refers to 2007 market data.
Page 1 Executive summary Executive summary The global sweet liqueurs market has witnessed steady growth, rising every year since 2000. In 2007, the overall global liqueurs market (including travel retail) rose by 1.4% to reach 79.2m nine-litre cases. While the category is rising steadily in most markets, there are relatively few markets where the category is displaying explosive growth. Sales are still concentrated largely in its traditional markets of Western Europe (accounting for a 49.4% share of global sales) and North America (33% share in 2007). The liqueurs category is in transition. Its traditional role has been severely diminished by the decline in after-dinner drinking in many markets. This is being offset by the increase in cocktail consumption in many markets. Many traditional after-dinner drinks are re-positioning themselves as cocktail ingredients. The cocktail culture is leading many bartenders to experiment with once relatively obscure liqueur categories and suddenly catapult a brand or subsegment to rapid and unexpected sudden growth. A number of full-strength spirits brands, particularly vodka and rum, are increasingly encroaching on liqueurs territory by their move into flavours, and lower strength versions. In terms of industry structure, the liqueurs category is exceptional in that it contains an inordinate number of independent companies. Despite this heavy representation by independent producers, Diageo and Pernod Ricard vie for the top spot as leading liqueur supplier with a 12% and 11.5% share of the global market respectively in 2007. In the US, easily the largest global market for liqueurs, the category rose by 0.6% in 2007 to reach 21.2m cases. This represents a slowdown from its five year (2003 to 2007) CAGR of 1.9% trend. This is in part due to less brand activity, fewer new brand introductions and less flavour introductions.
Page 2 Chapter 1 Scope of the market Chapter 1 Scope of the market The global sweet liqueurs market has witnessed steady growth, rising every year since 2000. In 2007, the overall global liqueurs market (including travel retail) rose by xxx% to reach xxxxm nine-litre cases. While the category is rising steadily in most markets, there are relatively few markets where the category is displaying explosive growth. Sales are still concentrated largely in its traditional markets of Western Europe (accounting for a xxxx% share of global sales) and North America (xx% share in 2007). Liqueurs have made fairly little penetration into the otherwise booming Asian markets, with the notable exception of Japan. Latin America drinks more bitters than sweet liqueurs. Locally produced liqueurs account for xxxx% of the global liqueurs market. The growth rate for the imported liqueurs segment is outpacing that of locally produced brands. Between 2003 and 2007, imports rose by CAGR xxx% compared to just xxx% for locally produced liqueurs. In 2007, that pattern was more pronounced with imports rising by xxx% compared to a roughly unchanged situation for locally produced liqueurs. Clearly import brands are gaining sales in most markets at the expense of locally produced brands. Market in transition The liqueurs category is in full transition. Its traditional role has been severely diminished by the decline in after-dinner drinking in many markets, attributable to the tougher enforcement of drink-driving laws and other social forces. As a rule of thumb, the older and less well-supported brands appear to be struggling, whereas younger, lower-strength products the so-called modern liqueurs seem to be faring better. Fortunately, traditional liqueurs have been thrown a lifeline with the growth of cocktail consumption. Many, once highly traditional liqueur brands, have been busily re-inventing themselves, highlighting their youthful and contemporary appeal and, importantly, their suitability as an ingredient of a mixed drink.
Page 11 Chapter 2 The major markets Chapter 2 The major markets Unless otherwise specified, all data quoted in this chapter refers to 2007 market data. The Americas Table 2: North America liqueurs volume by segment, 1997-2007 ('000s nine-litre cases) 1997 1998 1999 2000 2001 2002 2003 Liqueur ranges xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx Cream liqueurs xxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx Traditional H. S. liqueurs xxxxxxx xxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx Coffee liqueurs xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxxx xxxxxxx xxxxxxx Amaretti xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx xxxxx New style lemon liqueurs xxx xxx xxxx xxxx xxxx xxxx xxxx Ponche/cremas xxx xxx xxx xxx xxx Advocaat/egg liqueurs Cocktail/punch liqueurs xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Other liqueurs xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxxx xxxxxx Total xxxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx
Page 49 Chapter 3 Companies Chapter 3 Companies Table 17: Global top ten companies by liqueurs volume, 1997-2007 ('000s nine-litre cases) and 2006 value (US$'000s) Rank Company Value US$000's 2006 1997 1998 1999 2000 2001 2002 2003 1 Diageo xxxxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxx xxxxxx 2 Pernod Ricard xxxxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxx 3 De Kuyper xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxxx 4 Brown Forman xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxxx xxxxxxx 5 Lucas Bols xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxxx 6 Remy Cointreau xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxxx 7 ILLVA Spa xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxxx 8 Oak Tree xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxx xxxxxxx 9 Berentzen Group xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx 10 Choya xxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxx xxxxx Rank Company 2004 2005 2006 2007 % change 2006-2007 1998-2007 CAGR 2002-2007 1 Diageo xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxx% xx% xxx% 2 Pernod Ricard xxxxxxx xxxxxxx xxxxxxx xxxxxx xxx% xxx% xxx% 3 De Kuyper xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxx% xxx% xx% 4 Brown Forman xxxxxxx xxxxxxx xxxxxx xxxxxxx xxx% xxx% xxx% 5 Lucas Bols xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxx% xx% xxx% 6 Remy Cointreau xxxxxxx xxxxxxx xxxxxx xxxxxxx xxxx% xxx% xxx% 7 ILLVA Spa xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxx% xx% xxx% 8 Oak Tree xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxx% xx% xxx% 9 Berentzen Group xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxx% xxxx% xxx% 10 Choya xxxxx xxxxx xxxxxxx xxxxxxx xxx% xxx% Source: The IWSR