Whiskey Business: Liquor’s Boom Boosts the Results of Beverage Makers

Americans’ thirst for whiskey goes beyond the recent craze for Fireball Cinnamon Whisky, although it’s certainly helped.

Some of the biggest whiskey brands in the industry, such as Beam Suntory’s Jim Beam, Diageo’s (DEO) Bulleit and Brown Forman’s (BF.B) Jack Daniels are thriving as bars push pricey mixology menus and customers warm up to whiskey because of its low calories and carb counts. Further supporting the industry’s strength has been the introduction of new flavored whiskeys, from Apple Flavored Crown Royal to cinnamon-flavored Jack Daniels, that seek to take advantage of Fireball’s popularity.

According to the Distilled Spirits Council of the United States, bourbon and Tennessee whiskey sales were up 7.4% to over 19 million cases in 2014, generating $2.7 billion in industry revenue. Both Irish whiskey and single malt scotch continued their hearty growth, with volumes up 9.1% and 6.4%, respectively. By comparison, vodka sales volumes rose just 3.7% last year.

“I think whiskey plays into those that are health conscious,” Suntory Holdings Ltd. President Takeshi Niinami told TheStreet. “Whiskey has a low sugar count.”

Niinami, who has served six months in the top spot at Suntory was in New York City to discuss the performance goals of the closely held conglomerate, which formed Beam Suntory after purchasing Jim Beam last year for $16 billion.

Source: http://www.thestreet.com/story/13086685/1/whiskey-business-liquors-boom-boosts-the-results-of-beverage-makers.html#

Filed Under: F&B

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