THE SPIRITS INDUSTRY IS ALIVE AND THRIVING

The spirits industry is a busy and vibrant industry to be involved with, and 2003 was no exception. The constant changes ensure that every month offers a new range of issues and new range of products available on the shelves for the consumer to choose from.
   The last few years have seen a steep increase in the number and variety of drinks available, particularly in the ready to drink (RTD) category. The choices available to consumers have never been so varied. Without doubt, our taste buds are the big winner, so many rich flavours, colors, tastes, textures, aromas and quality product to choose from. This variety extends across all sectors of the alcohol industry, beer, wine as well as spirits.
   In 2003, the Liquor Merchants Association website which collates all of the industry’s sales statistics indicated that there was an increase in spirit sales of 19.6 per cent from December 2002 to December 2003. With an annual growth rate of nearly 20 per cent, the spirits industry will continue to invest in research and development of new products. The spirits industry is alive and thriving.
   In the ready to drink (RTD) sector, a growth figure of 23.2 per cent was achieved from December 2002 to December 2003. In December, 2,345,587 nine-litre cases (equivalent to 24x375mls) of RTDs were sold. The strength in the RTD sector of the industry continues to be very vibrant. The increasing popularity has seen many new products available to the consumer.
   RTDs based on dark spirits make up a large majority of sales. RTDs made from bourbon, rum and scotch contribute to more than 66 per cent of all RTDs consumed. Bourbon based RTDs continue to be the most popular RTD comprising more than a third of product sold. Scotch based RTDs represented the biggest increase from December 2002 to December 2003 with a 57.5 per cent increase, bourbon based products increased by 45 per cent.
   Even with the strong growth in RTD sales over the past year, RTDs is still the smallest category of alcohol sold in Australia. Beer with about a 50 per cent market share remains the most consumed alcohol, followed by wine at about 30 per cent, then bottled spirits at about 11 per cent and RTDs at about 9 per cent market share.
   RTDs are not new product to Australia, as UDL was first produced back in 1962. The worldwide growth in RTDs began in the early 1990s, but globally represents just 1 per cent of the alcohol drinks market.
   The convenience of having a portion controlled pre-mixed drink continues to prove popular and the nature of RTDs is continually changing as new tastes and trends emerge from a taste-driven and trend-setting consumer base. The consumer is demanding a greater variety and versatility and their demands are being met.