Nielsen Spirits Data: Strong Growth Trends Continue

May 14, 2012
Morgan Stanley
Key takeaways from the spirits scanner data for the 4-week period ended 4/28: (1) Robust spirits growth continues at +5.5% (2-yr avg. of +5.4%), with the momentum accelerating vs. the prior 12-week trend of +4.7% (2-yr avg. of +4.2%). (2) Price/mix of +1.5% was in-line with its prior 12-week trend of 1.5%. (3) Strength in recent innovation (flavor extensions) continues.

Key Industry Trends: Total spirits sales for the 4-week period ended 4/28 were up +5.5% y-o-y (+5.4% on a 2-yr avg. basis), driven by +4.0% volume and +1.5% price/mix. Sales growth this month was ahead of the 4.7% growth in the prior 12-week period. Category strength in Prepared Cocktails (+19.1%), Bourbon (+14.5%) and Vodka (+7.5%) were partially offset by weakness in domestic whiskey (-5.2%) and Brandy (-1.9%).