Spirits 'not recession-proof' – US trade body
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Written by Nigel Huddleston
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Monday, 02 February 2009 |
A warning that the spirits industry is "recession-resistant, not recession-proof" has come from the Distilled Spirits Council of the United States (DISCUS).
The organisation released figures that showed a slowing of revenue growth in the US market of 2.8% in 2008 to £18.7 billion. Volume growth was 1.6%, to stand at 184 million cases.
DISCUS ceo Peter Cressy warned against mooted new hospitality taxes in some states. He said the on-trade hospitality industry was already "reeling" and that more taxes could have a devastating impact on employment and tax receipts.
"We are not seeking a bailout, just do no harm," he pleaded with policy-makers. "Legislators now understand increasing market share for distilled spirits will drive new revenue for the states without raising taxes."
Best growth in the US spirits market in 2008 came from premium rum, top-end whiskey and super-premium tequila.
Cressy added: "Consumers are being more discerning about their buying decisions when it comes to alcohol."
Revenue for exports of American whiskey rose 8% to $1.1 billion, with the strongest growth in Australia and Canada, where sales rose by nearly a quarter.
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