The Global Super and Ultra Premium Market Size

• The size of the global super and ultra premium spirits industry as of 2018 is estimated to be approximately $30 billion.
• In 2015, the market size for the global super premium spirits market was $33 billion.
• The Distilled Spirits Council classified spirits into four categories based on price per bottle, and these include value ($12 below), premium ($12 to $20), high end ($20 to $35), and super premium ($35 and above).
• According to Distilled Spirits Council, super-premium spirits accounted for 74.0 million liters of the United States spirits market in terms of volume.
• In 2018, the super-premium spirits segment accounted for $6.4 billion of the total sales revenue of the United States spirits market.
• The global spirit market grew from 2013 at a CAGR of -3.2% to reach $125 billion as of 2018.
• According to Euromonitor, the market size for global luxury spirits was $15 billion in 2015 and is forecast to reach $17.7 billion by 2020.

Research Strategy

Aberlour

• At the International Wine & Spirit Competition, Aberlour has been granted three Pot Still Trophies and nine gold medals.
• They are located in the village of Aberlour near Ben Rinnes mountains in Scotland.
• Their product lineup include 12 Year Old, 16 Year Old, 18 Year Old, and A'Bunadh Scotch whiskey.
• They distribute in multiple nations, including its home country Scotland and the United States.
• According to ZoomInfo, Aberlour's estimated annual revenue amounts to approximately $6.9 million.
• Price of Aberlour whiskeys ranges from £48.50 per liter (10 Year Old whiskey) to £2,857.14 per liter (Aberlour 1966).

The Balvenie

• Balvenie won the IWSC Trophy at the 2017 International Wine and Spirits Awards.
• The company is located in Dufftown, Speyside, Scotland.
• Some of the products in their massive lineup include Doublewood 12, Caribbean cask 14, Doublewood 17, Portwood, The Week of Peat, A Day of Dark Barley, Single Barrel 12, Single Barrel 15, TUN 1509, and Tripple cask 16.
• Balvenie has distribution and brand ambassadors in several nations, including France, Taiwan, the United Kingdom, Asia, etc.
• Balvenie's estimated annual revenue is around $10.3 million.
• Price of Balvenie whiskeys ranges from £55.36 per liter (Balvenie 12 Year Old whiskey) to £7,142.86 per liter (Balvenie 1951).

Laphroaig

• During the San Francisco World Spirits Competition in 2019, Laphroaig was awarded five medals.
• The company is located in Port Ellen, Scotland.
• Some of the products in their lineup include Laphroaig Select, Laphroaig Triplewood, Laphroaig 30 Year Old, Laphroaig Lore, and Laphroaig 10 Year Old.
• Established in the year 1994, the Friends of Laphroaig program has 400,000 members, as of 2010, from over 150 nations. To become a part of the program, a unique code is required, and it is attached to every bottle an individual purchases. This information suggests that the company distributes it products to at least 150 countries.

• Laphroaig's estimated annual revenue is about $7.1 million.
• Price of Laphroaig whiskeys ranges from €19.60 per bottle (Laphroaig Select) to €835.37 per bottle (Laphroaig 30 year old).

Research Strategy:

Mindful Drinking

• According to a report by The Spirits Business, the sole dedicated global spirits website and magazine, drinkers are making lifestyle choices that include taking "a more considered approach to their alcohol consumption." Essentially, this means that consumers are developing moderate alcohol consumption habits that is driving a preference for low/no alcohol drinks.
• According to a report by the Drinks Insights Network, an authoritative drinks/beverage analytics and news resource, the Diageo World Class programme identified "low and no alcohol cocktails" as a trend driven by the younger generations. They are referred to as mocktails.
• Both resources state that millennials and Gen Z are driving the trend because of their desire for healthier products and more life balance.
• A separate Nielsen report stated that the non-alcoholic drinks trend is the fastest growing trend in the drinks sector.
• This is a trend because it has been highlighted in three credible research reports, and also because there is a growing awareness among consumers which has enabled the market for non-alcoholic spirits to thrive. For example, mocktail variants are served in more than 100 Michelin-star restaurants globally.
• The trend's popularity is expected to grow which will disrupt the global spirits market as more brands enter the market with more innovative products and a wider "assortment of lower­-alcohol offerings."
• Companies exhibiting the trend include Seedlip and Pernod Ricard's Absolut.

Premiumization

• According to a market analysis by the International Wines and Spirits Record (IWSR), the world's leading beverage alcohol trends analytics resource, "consumers' appetite for premium brands remains strong" globally.
• Premium brands are showing a strong performance especially in China, Japan, Africa, and countries in South East Asia.
• The premiumization trend is especially evident in the tequila category. Beverage Daily highlights findings from the International Wine & Spirit Competition (IWSC), the leading quality benchmarking authority in the spirits industry, stating that consumers are developing an interest in premium tequila globally.
• This is a global trend because it has been identified by an authoritative market research/analytics resource and, also, because leading brands are seeing double-digit growth in their premium portfolios, which indicates growth.
• Premiumization is likely to lead to the growth/expansion of the global spirits market as seen by the growth of premium products and the significant revenues increases as a result.
•  Companies exhibiting the trend include Diageo, Pernod Ricard, and Rémy Cointreau.

Hybrid Spirits

• According to The Spirits Business, there is growing innovation in the global spirits market, which has led to the introduction and adoption of hybrid crossovers as well as the implementation of different base ingredients and experimentation with new botanicals in spirits recipes.
• Drinks Insights Network highlights a report by GlobalData that identifies sensory hybrids (unique spirits created by merging contrasting flavors) as a key trend in the spirits market. GlobalData attributes this trend to the "strong demand for distinctive experiences."
• This is a global trend because it has been highlighted in two reports and, also, because it has already led to the creation of multiple products including Vodquila (vodka and tequila), Rumquila (tequila and rum), Courvoisier Rose (red wine and Courvoisier Cognac), and Nuvo Sparkling (sparkling wine and vodka).
• As the trend continues to grow, more companies in the spirits market as well as new entrants are expected to join the trend. Additionally, hybrid spirits are expected to "push the boundaries of categories and encourage beverage exploration."
• Companies exhibiting the trend include London Distillery's Rebel Rabbet and Red Eye Louie's.

Asian Spirits

• According to the report by the IWSC, the growth in popularity of Asian spirits is among the key trends in the global spirits market.
• The IWSC reports that Asian spirits, including Japanese shochu and Chinese baijiu, have gained respect and recognition in the due to improvement in quality.
• According to the Drinks Insight Network, the Japanese gin market is also steadily gaining traction in the global spirits industry led by craft gin products.
• This is a trend because it has been highlighted by two authoritative reports and, also, because the products have gained global recognition by earning multiple global awards. Additionally, some companies are already infiltrating Western markets.
• As the trend continues to grow, more Asian (especially Japanese) companies are expected to expand further into the Western market, which would affect the market share held by Western gin companies.
•  Companies exhibiting this trend include Suntory and Kyoto.