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Spirits growth supported by hospitality industry recovery; more help needed for restaurants and bars
The distilled spirits sector achieved strong growth in 2021 driven by the gradual reopening of restaurants and consumers trading up to super-premium spirits for at-home occasions, the Distilled Spirits Council of the United States (DISCUS) announced today at its annual economic briefing for media and analysts.
DISCUS President and CEO Chris Swonger reported that supplier sales in the United States were up 12 percent in 2021 to a total of $35.8 billion, while volumes rose 9.3 percent to 291.1 million 9-liter cases.
In 2021, spirits gained market share of the total US beverage alcohol market with sales rising 1.7 share points to 41.3 percent. This represents the 12th straight year of market share gains for spirits overall.
“Last year, enthusiasm for spirits continued as consumers spent more to elevate their cocktail experiences with super-premium brands,” said Swonger. “Consumers savoring spirits at home and trading up to higher-end brands, combined with the gradual reopening of bars and restaurants, resulted in record sales for the spirits sector. We’re also seeing strong growth for spirits-based ready-to-drink products, and that’s adding to our sector’s gains as well.”
Swonger noted that the premiumization trend, along with innovative COVID-relief measures such as cocktails-to-go, delivery and e-commerce, have helped to boost restaurants, bars and small distilleries as they continue to manage through the uncertainty and volatility created by the lingering pandemic.
Uneven COVID-19 Impacts on US Hospitality Industry Continues
Swonger underscored, however, that while the spirits sector has remained resilient during the pandemic, the uneven economic impacts of COVID-19 remain for certain segments of the US hospitality industry.
“The twists and turns of this pandemic continue to create volatility in the recovery of restaurants and bars,” said Swonger. “Restaurants showed signs of roaring back during the first half of the year but sales stalled in the second half with the new spike in COVID cases, staff shortages and supply chain disruptions. We will continue to advocate for more funding through the Restaurant Revitalization Fund to help them get back on the path to growth.”
Sales volumes at on-premise establishments, which represent about 20 percent of the US market, were up 53 percent in 2021 following nationwide restaurant and bar closures and restrictions. Off-premise sales volumes, which saw sharp gains in 2020, were flat in 2021 .
Since the start of the pandemic, …
Full story available on Benzinga.com
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