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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 22/02/2023
Summary and extracts
1 Market overview
1.1 Definition and presentation
Spirits are categories of alcohol made by distilling agricultural raw materials. Simple" spirits, such as tequila, vodka, rum or whisky, result directly from the distillation of the raw material. Compound" spirits, such as gin or aniseed, are obtained by adding an aromatic substance to a neutral alcohol or brandy.
Worldwide, the spirits market is enjoying strong sales growth. The Asia-Pacific region now accounts for more than half of the global market, with very strong growth momentum, followed by North America and Europe. Leading companies in the sector include Pernod-Ricard, Remy Cointreau, Diageo, Brown-Forman, Marnier Lapostolle and Belvédère. Several countries have their own particular areas of excellence, such as Cognac in France or Whisky in Scotland.
In Spain, sales of spirits fell by 33% in 2020. At that time, they represented 3% of the total volume of alcoholic beverages sold in the country. The market was particularly affected by the health shutdowns: bars and nightclubs being a particularly important distribution channel for companies. Vodka (-48.2%), gin (-36.5%) and rum (-33.3%) plummeted, while brandy (-29.8%), liqueurs (-29%) and whisky (-28.9%) held up a little better. Sales recovered well in 2021, however, with a revival of sales through the Horeca channel and an upturn in tourism, though without reaching 2019 levels. Gin, liqueurs and whisky remain the three most consumed spirits in Spain.
1.2 Global market
The global spirits market is set for strong growth over the next decade. Between **** and ****, sales in this sector could rise from US$** billion to US$*** billion, an increase of +**.*% per year.
trend in spirits sales World, ****-****, US$ billion Source: ****
Despite growing health awareness, demand for spirits continues unabated. The ...
1.3 Domestic market
The Spanish spirits market has suffered greatly from the restrictions imposed by the health crisis. In ****, total sales in the sector were still **% lower than in ****. Sales for ****, **** and **** are obtained from INE data through CNAE activity code ****: "Distillation, rectification and blending of alcoholic beverages."
spirits manufacturing sales trend Spain, ****-****, ...
1.4 International trade
Spirits flows can be analyzed on the UN Comtrade website under HS code ****: "Undenatured ethyl alcohol of an alcoholic strength by volume of less than **% vol; spirits, liqueurs and other spirituous beverages".
In terms of imports, Spain spent US$ *** million in **** importing liqueurs, rum and other spirits. The leading country of ...
2 Demand analysis
2.1 Household demand
The government's report on Spanish diet, entitled"Informe del consumo alimentario en España ****", provides information on the quantities and prices of spirits consumed by households. The beverages analyzed are whisky, brandy, gin, rum, aniseed and others. The other category includes liqueurs, vodka and tequila.
Despite a drop in the quantities ...
2.2 Socio-economic characteristics
The middle classes account for most of the demand for spirits, representing **.*% of quantities consumed. However, the lowest and highest socio-economic categories consume the most spirits per capita, buying on average *.*% more than the national average, or around *.* liters per year.
Breakdown of spirits consumption by volume and socio-economic category Spain, ...
2.3 Out-of-home consumption
Outside the home, households frequently consume spirits in bars and other stores. In total, this channel generated €**.* million in revenues in ****.
Spirits consumption by value in bars Spain, ****, € thousand Source: ****
This product range is highly profitable for bars, restaurants and hotels. In fact, **% of these establishments' revenues come from the sale ...
3 Market structure
3.1 Companies
The market is dominated by leading international companies.
Local sales of world leaders in the spirits market Spain, ****, € million Source: ****
3.2 Distribution by channel
The distribution channel preferred by Spanish households for the purchase of spirits is the supermarket, which accounts for more than half of sales.
Breakdown of volumes by distribution channel Spain, ****, % of sales Source: ****
3.3 Geographical distribution
The Autonomous Communities where inhabitants consume more than *.* liters per person per year are the Balearic Islands, Catalonia, La Rioja and Cantabria. By contrast, average spirits consumption in Navarre is the lowest, at just *.* liters per person per year, **.*% below the national average.
4 Offer analysis
4.1 Average price
Consumption of spirits is cyclical. It rises sharply during the festive season in December, driving up the price to over €**/liter. In ****, a liter of spirits was worth an average of €**.**/liter, ** cents less than in **** and ****. by way of comparison, a liter of wine was worth €* on average, and a ...
4.2 Product variety and geographical indications
There is a wide range of spirit drinks produced in Spain. The main protected geographical indications are listed in the following table:
Source: ****
Below, we give orders of magnitude for the proportion of each protected spirit drink in total national production. Brandy de Jerez is the variety with the highest market ...
4.3 Innovations
According to Kantar's"Radar de la Inovación ****", alcoholic beverages, and spirits in particular, are the categories with the highest number of successful innovative products. This marketing success is measured by product penetration rates and innovation repeat rates.
Of the ** most innovative products, * are beverages, * of them alcoholic and * in the ...
5 Regulations
5.1 Current regulations
The standards governing the production and sale of spirit drinks are both EU and national.
Regulation (***) ***/****, concerns the denomination of spirit alcohols. It ensures that not only geographical designations but also the agricultural origin of distilled liquids are respected. Regulation (***) n°****/**, concerns the presentation and labeling of spirit drinks. The Royal ...
6 Positioning the players
6.1 Segmentation
- Mercadona
- Bacardi
- Brown Forman
- Rémy Cointreau
- Pernod Ricard Groupe
- Diageo
List of charts
- Spirits sales trend
- Local sales of the world's leading spirits companies
- Sales trends in spirits manufacturing
- Change in spirits sales
- Change in consumption by beverage
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Latest news
Diageo regains control of its premium spirits in France - 08/02/2024
- Diageo, world leader in spirits, creates its subsidiary in France
- Diageo takes over direct sales of the majority of the brands it has distributed since the 2000s via MHD (Moët Hennesssy Diageo) in France.
- Only three of its brands are marketed via MHD in France: Johnny Walker, J & B, and Gordon's gin.
- The UK's Diageo is present in France with a market share of 7.9%.
- Diageo's total sales are 20.5 billion euros, two-thirds of which come from the premium spirits segment.
- In this segment, its market share in France is just 3.6%.
- The Group has a much higher market share in other countries: 47% in Greece, 24.4% in Spain and 13.7% in Italy.
- The transfer of MHD (Moët Hennesssy Diageo) brands to the new Diageo subsidiary in France will begin in March 2024
- Diageo plans to develop its tequila offer in particular, with the Don Julio brand.
- Two exclusive distributors are planned for sales to wine merchants: Dugas for Tanqueray gin, Tekel One vodka and a range of pure malt whiskies; and La Maison du Whisky for Don Julio tequila.
How India is becoming Pernod Ricard's whisky paradise - 22/01/2024
- Pernod Ricard aims to accelerate its presence in India.
- The French giant, which occupies a leading position in the sub-continent
- Strong growth in the Indian whisky market.
- In the entry-level whisky segment, the group owns Royal Stag and Imperial Blue - two brands produced in India that rank among the top 5 best-selling whiskies in the country. It also owns several high-end brands: Chiva's Regal, Ballantine's and Glenlivet - imported whiskies that carry a 150% surtax.
- India accounts for 10% of the Group's total sales, or around 1.2 billion euros.
- A major market for the Group behind the United States.
- Consumption of imported whiskies and high-end Indian single malts is booming.
- Scotch imports are set to double between 2020 and 2022,
- India is the leading export market for Scottish brands.
- Sales of Indian single malt rose by 144% between 2021 and 2022.
- Local brands owned by the French giant account for 85% of sales by value. Imports of foreign brands account for the remaining 15%.
- Pernod Ricard has 27 factories across the country.
The trials and tribulations of Pernod Ricard to create the first whisky "made in China" - 17/12/2023
- Pernod Ricard inaugurates the country's first whisky distillery
- Pernod Ricard plans to invest 150 million euros over ten years in this project.
- Market launch of the first bottles of The Chuan, the first pure malt made in China.
- Bottles are priced between 115 and 190 euros, depending on the degree of alcohol (40, 46 or 60 degrees) and the type of aging.
- Pernod Ricard's Chinese subsidiary accounts for 10% of group sales
- Pernod Ricard is the world's second-largest spirits company, and already owns some 50 whiskies (including Chivas, Ballantine's, The Glenlivet, Aberlour, Royal Salute, Jameson and Jefferson's),
- The Chinese spirits market remains 97% dominated by Baijiu (sorghum-based alcohol).
- Western spirits share the remaining 3%, starting with cognac (a market worth 3.2 billion euros, according to specialist consultancy IWSR) and whisky (1.2 billion euros).
- The Emeishan distillery is located on the Mount Emei road, used by millions of Chinese tourists throughout the year. Pernod Ricard expects two million visitors within the next ten years.
The Chuan, Pernod Ricard's first Chinese whisky | Pernod Ricard and Chuan Whisky - 13/12/2023
- The Pernod Ricard group has launched the first bottles of pure malt produced at The Chuan distillery in China.
- The bottles are priced at 100 euros each.
- Pernod Ricard has invested 150 million euros over ten years to finance China's first foreign whisky distillery.
- The distillery has a capacity of 1 to 1.5 million pure spirits.
- China remains a massive consumer of Baiju, the national spirit, with a share of foreign alcohol consumption of less than 2%.
- Pernod Ricard holds leading positions in China for the two most widely consumed imported spirits, cognac with Martell and whisky with Chivas.
Diageo no longer relies on LVMH to win over the French - 25/11/2023
- Diageo (Johnnie Walker, J&B, Smirnoff, Tanqueray, Bailey's, Casamigas...), the world's leading spirits company, has set up its own distribution subsidiary in France
- Diageo is a 34% shareholder in Moët Hennessy.
- Diageo entrusted the distribution of its spirits to MHD (Moët Hennessy Diageo) in 1998.
- from March 1, the new Diageo subsidiary will take over direct marketing of almost all its brands.
- Diageo believes that its portfolio has been too slow to move upmarket in France.
- The group is counting on its development in out-of-home channels (bars, hotels, restaurants, nightclubs, etc.), also known as "on trade", which accounts for only 20% to 30% of Diageo's sales in France
- Diageo plans to increase its market share in France from 7.9% to 10% within three years.
- Diageo ranks third in the French market behind Pernod-Ricard and La Martiniquaise.
- Diageo plans to expand its global footprint in the general alcoholic beverage market to 6% by 2030, up from 4% today.
- MHD will continue to distribute the Moët Hennessy portfolio as well as some of Diageo's most iconic brands in the French market.
- A competitor, Beam Suntory, will take over distribution of Campari brands in France from January.
Cognac: Rémy Cointreau a victim of the difficult spirits market - 27/10/2023
- Rémy Cointreau U.S. sales down 26.6% in first half
- The group forecasts a drop in annual sales of between 15% and 20%.
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The spirits market | Spain
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