Parnell Rosenberg Irwin - Beer Losing Ground To American Whiskey

Beer Losing Ground To American Whiskey

Parnell Rosenberg Irwin - Beer Losing Ground To American Whiskey

by ANWS Online

The emergence of craft beers has triggered an unprecedented increase in the number of microbreweries across the U.S. from just about a hundred before the 70s to more than 5,000 in 2016. Currently, 75 percent of Americans legally allowed to purchase alcoholic beverages live within 10 miles of their nearest brewery and records showed that the emergence of the craft beverages is not limited to beer and has now spread to American whiskey.

Previous figures from the Distilled Spirits Council (DSC) showed that Tennessee whiskey, bourbon and rye whiskey sales went up by about 8 percent to $3.1 billion last year. The increase comes as welcome news for whiskey distillers like Brown-Forman Corp and Diageo PLC and the nearly 22 million cases of American whiskey sold last year mirrored a 7 percent climb year-on-year.

DSC noted that for the past seven years distilled spirits like whiskey, have encroached into the beer market share, increasing by 4.5 percent to $25.2 billion last year. American alcohol exports went up 6.8 percent in 2016, propelled by American whiskey shipments, which climbed 10.2 percent in 2016.

The council underlined the improvements on all the categories of spirits due to the desirability amongst the increasing adult millennial consumers.

The emergence of the American whiskey trend is the reason why the leading craft beer brewer Boston Beer Inc. expanded its agreement with Berkshire Mountain Distillers last year. The deal aims to offer Two Lanterns American Whiskey in select liquor stores, restaurants and bars on the East Coast.

The market expects to see more of these partnerships as Berkshire Mountain has announced a new Craft Brewers Whiskey Project that will work alongside numerous distillers to produce individual whiskies.

Apart from American whiskey, other spirit based beverages have also experienced sales growth. Irish whiskey climbed 19.8 percent to $795 million last year and Cognac’s sales also increased by 15.3 percent year-over-year. Tequila sales rose 7.5 percent to $2.5 billion also.