The IWSR Global Premium Report 2012

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The IWSR Global Premium Report 2012 Date: September 2012 the IWSR & the IWSR Magazine 254-258 Goswell Road, London EC1V 7EB t: +44 (0) 20 7689 6841 f: +44 (0) 20 7689 6827 e: info@iwsr.co.uk www.iwsr.co.uk

Index The IWSR Premium Report... 1 Global Premium-and-above Market Overview... 4 Chart: Map showing global premium-and-above consumption... 4 Chart: Market growth by quality segment... 4 Chart: Category market share (volume)... 5 Chart: Category market share (value)... 5 Chart: Top 5 premium-and-above categories... 5 Table: Top 10 premium-and-above companies... 6 Chart: Top premium-and-above markets... 6 Chart: Top premium-and-above brands... 6 Guide to Key Whisk(e)y and Cognac Brands by Quality... 7 Top 5 Premium-and-above Countries... 9 Table: Top 5 premium-and-above countries... 9 Table: US premium-and-above market by category... 9 Table: China premium-and-above market by category... 9 Table: Duty Free/Travel Retail premium-and-above market by category... 10 Table: France premium-and-above market by category... 10 Table: UK premium-and-above market by category... 10 Table: Premium-and-above market data... 11 The Premium Market... 13 Chart: Map showing global premium consumption... 13 Chart: Top 5 premium categories... 13 Chart: Category market share (volume)... 14 Chart: Premium market by category... 14 Table: Premium market by region... 15 Chart: Top 10 premium companies... 16 Table: Top 10 premium brands... 16 Table: Premium market data... 17 The Super-Premium Market... 18 Chart: Map showing global super-premium consumption... 18 Chart: Top 5 super-premium categories... 18 Chart: Category market share (volume)... 19 Table: Super-premium market by region... 19 Chart: Top 10 super-premium companies... 20 Table: Top 10 super-premium brands... 20 Table: Super-premium market data... 21 The Ultra-Premium Market... 22 Chart: Map showing global ultra-premium consumption... 22 Chart: Top 5 ultra-premium categories... 22 Chart: Category market share (volume)... 23 Table: Ultra-premium market by region... 23 Chart: Top 10 ultra-premium companies... 24 Table: Top 10 ultra-premium brands... 24 Table: Ultra-premium market data... 25

The Prestige Market... 26 Chart: Map showing global prestige consumption... 26 Chart: Prestige category growth... 26 Chart: Top 10 prestige companies... 27 Table: Top 10 prestige brands... 27 Table: Prestige market data... 29 Top Premium-and-above Companies... 31 Chart: Top premium-and-above company quality mix (volume)... 31 Table: Top premium-and-above companies (volume)... 31 1.Diageo... 32 Chart: Premium-and-above value growth... 32 Chart: Top premium-and-above brands... 32 Chart: Top markets by volume... 32 2.Pernod Ricard... 33 Chart: Premium-and-above value growth... 33 Chart: Top premium-and-above brands... 33 Chart: Top markets by volume... 33 3.Brown-Forman... 34 Chart: Premium-and-above value growth... 34 Chart: Top premium-and-above brands... 34 Chart: Top markets by volume... 34 4.LVMH... 35 Chart: Premium-and-above value growth... 35 Chart: Top premium-and-above brands... 35 Chart: Top markets by volume... 35 5.Bacardi-Martini... 36 Chart: Premium-and-above value growth... 36 Chart: Top premium-and-above brands... 36 Chart: Top markets by volume... 36 6.Beam... 37 Chart: Premium-and-above value growth... 37 Chart: Top premium-and-above brands... 37 Chart: Top markets by volume... 37 7.Rémy Cointreau... 38 Chart: Premium-and-above value growth... 38 Chart: Top premium-and-above brands... 38 Chart: Top markets by volume... 38 Champagne... 40 Chart: Champagne market by quality segment... 40 Chart: Top 10 growth markets... 40 Chart: Premium-and-above Champagne companies... 41 Table: Top 10 premium-and-above Champagne brands... 41 Table: Premium-and-above Champagne market data... 42

Scotch Whisky... 43 Chart: Scotch market by quality segment... 43 Chart: Top 10 growth markets... 43 Chart: Premium-and-above Scotch companies... 44 Table: Top 10 premium-and-above Scotch brands... 44 Table: Premium-and-above Scotch market data... 45 US Whiskey... 46 Chart: US whiskey market by quality segment... 46 Chart: Top 10 growth markets... 46 Chart: Premium-and-above US whiskey companies... 47 Table: Top 10 premium-and-above US whiskey brands... 47 Table: Premium-and-above US whiskey market data... 48 Other Whisky (Canadian, Irish & National)... 49 Chart: Other whisky category market growth... 49 Table: Top 10 premium-and-above other whisky brands... 49 Canadian Whisky... 50 Chart: Top Canadian whisky companies... 50 Chart: Canadian whisky category by quality... 50 Table: Canadian whisky market data... 50 National Whisky... 51 Chart: Top national whisky companies... 51 Chart: National whisky category by quality... 51 Table: National whisky market data... 51 Irish Whiskey... 52 Chart: Top Irish whiskey companies... 52 Chart: Irish whiskey category by quality... 52 Table: Irish whiskey market data... 52 Table: Premium-and-above other whisky market data... 53 Gin/Genever... 54 Chart: Gin/genever market by quality segment... 54 Chart: Top 10 growth markets... 54 Chart: Premium-and-above gin/genever companies... 55 Table: Top 10 premium-and-above gin/genever brands... 55 Table: Premium-and-above gin/genever market data... 56 Vodka... 57 Chart: Vodka market by quality segment... 57 Chart: Top 10 growth markets... 57 Chart: Premium-and-above vodka companies... 58 Table: Top 10 premium-and-above vodka brands... 58 Table: Premium-and-above vodka market data... 59 Tequila... 60 Chart: Tequila market by quality segment... 60 Chart: Top 10 growth markets... 60 Chart: Premium-and-above tequila companies... 61 Table: Top 10 premium-and-above tequila brands... 61 Table: Premium-and-above tequila market data... 62

Rum... 63 Chart: Rum market by quality segment... 63 Chart: Top 10 growth markets... 63 Chart: Premium-and-above rum companies... 64 Table: Top 10 premium-and-above rum brands... 64 Table: Premium-and-above rum market data... 65 Cognac... 66 Chart: Cognac market by quality segment... 66 Chart: Top 10 growth markets... 66 Chart: Premium-and-above Cognac companies... 67 Table: Top 10 premium-and-above Cognac brands... 67 Table: Premium-and-above Cognac market data... 68 National Brandy... 69 Chart: National brandy market by quality segment... 69 Chart: Top 10 growth markets... 69 Chart: Premium-and-above national brandy companies... 70 Table: Top 10 premium-and-above national brandy brands... 70 Table: Premium-and-above national brandy market data... 71 Flavoured Spirits... 72 Chart: Premium-and-above flavoured spirits market by category... 72 Chart: Top 10 growth markets... 72 Table: Premium-and-above flavoured spirits by category... 73 Chart: Premium-and-above flavoured spirits companies... 74 Table: Top 10 premium-and-above US whiskey brands... 74 Table: Premium-and-above flavoured spirits market data... 75 Baijiu... 76 Chart: Baijiu market by quality segment... 76 Table: Baijiu vs imported spirits in China... 76 Table: Top 5 baijiu brands - 2010... 76 Cachaça... 77 Chart: Cachaça market by quality segment... 77 Table: Top premium-and-above cachaça brands... 77

The IWSR Premium Report This report is an in-depth analysis of the premium-and-above Champagne and spirits market, analysing each quality segment at market, company and brand level. This report is based on data from the IWSR s individual country reports which cover 134 domestic markets combined with the IWSR s duty free/travel retail database. The IWSR s unique methodology, visiting over 1,200 operators globally each year (including producers, importers, distributors and industry experts) ensures our researchers collect the most reliable brand figures, as well as collecting together local expertise and insight into market trends. The report contains analysis by quality segment (premium, super-premium, ultra-premium and prestige), as well as an overview of the top owners of premium-and-above brand and individual product category analysis. The report provides a comprehensive overview of the global premium-and-above market, highlighting and explaining key trends across the market and providing background information to the data. For the purposes of this report: Premium (and super-premium, ultra-premium and prestige) volumes are comprised of those brands that sell at a premium (or super-premium, ultra-premium or prestige) level in each individual country. There may be some crossover with some brands classed as standard in some countries and premium in others, depending on the market and region. This classification is based on market analysis by country and is updated yearly in the IWSR individual country reports. Only volumes classed in the premium (or super-premium, ultra-premium or prestige) segment are included in this report. Therefore some brand figures may not represent total global volumes. Average retail price of quality segments (US$) (see note below): Premium: $20-$30 Super-Premium: $30-$50 Ultra-Premium: $50-$100 Prestige: $100+ All values in the report are based on retail price (US$). Care should be taken when using these figures as value can be distorted by high taxes. The average price per case is based on constant 2011 exchange rates. The average retail price for baijiu has been estimated to sit at the top end of each quality price band (premium - $30; super-premium - $50; ultra-premium - $100) due to the category s high price positioning and lack of sufficient information at brand level. Company volumes are based on brand ownership in 2011. Volumes for a company that acquired a particular brand in 2010 will also include all the brand s historic volumes. E.g. Edrington acquired Brugal rum in 2008, but all past Brugal volumes will be included in Edrington s totals. The report focuses on the premium-and-above Champagne and spirits market, consisting of: Champagne Scotch whisky US whiskey Irish whiskey Canadian whisky National whisky Gin Vodka Tequila Rum Cognac National brandy Flavoured spirits Baijiu Cachaça Copyright 2012 - The IWSR 1

The report does not cover sparkling wine other than Champagne due to the category s much lower average retail price. Other categories not covered include sherry, due to the category s small volumes, and light aperitifs, where no premium market currently exists. There is a significant premium-and-above Port market, but due to the high number of own-label products and insufficient data the category has been excluded from the report. There is a large top end market of soju (Korea) and sake/shochu (Japan) that is currently not included in the IWSR global volume data. Baijiu figures (China) split by quality are also best estimates by industry operators in China, as no consumption figures currently exist. IWSR volumes are based on government production figures. Volumes for the premium-and-above still light wine market are not included in this report. This may distort consumption figures of premium-and-above products particularly in Europe where consumption of top end wine is much more widespread than in other parts of the world. There are a large number of small craft and/or artisanal brands at the very top end in each category which are not picked up by the IWSR. It is almost certain that volumes of ultra-premium and prestige brands in many of the categories are underreported. Due to China s vast domestic baijiu market which heavily distorts global volumes, the market has been broken out into China Domestic (baijiu) and China Imported in the quality segment analysis tables. For regional analysis, Old Europe comprises North West Europe, Southern Europe and the Nordic markets; New Europe includes Central and Eastern Europe. The markets have been grouped as such due to the similar behaviours and trends within each geographical region. Conditions of Sale: This report is provided for the sole use of the recipient company. The report may be used freely within the recipient company and any 100%-owned subsidiary, but may not be transferred by any means to any third party without the prior written permission of The IWSR. To enquire about other reports or for more information on The IWSR products and services please contact: t: +44 (0) 20 7689 6841 or e: info@iwsr.co.uk Copyright 2012 - The IWSR 2