Whisk(e)y remains a prominent category in the thriving US spirits market. Domestically produced expressions hold a special place in consumers’ hearts, yet there is growing demand for international offerings too, with nearly 15% of consumers favouring this segment.
Insights derived from CGA’s Beverage-Trak reveals that in the closing quarter of 2022, the category experienced a significant 16% uplift compared with the previous quarter. The winter season, in particular, demonstrated robust growth, with Q1 of 2023 exhibiting an impressive 11% increase compared to Q3 of 2022.
This uplift outperformed the US spirits market overall, which witnessed a 9% velocity increment during Q1 compared to Q4, and a 7% rise compared to Q3 of 2022. Florida and New York showed the most substantial growth (+31% and +26%, respectively) between Q1 2023 and Q3 2022.
Canadian, Irish and Scotch lead international segment
When examining international whisk(e)y subcategories, Canadian, Irish and Scotch whiskies emerge as the most popular choices, collectively selected by just over 7% of US on-premise consumers. Of these, Canadian whisky holds a slightly higher appeal, chosen by 7.4% of drinkers. In contrast, Japanese whisky remains relatively niche, with only 2.6% of drinkers engaging.
Despite its smaller market share, Japanese whisky still presents an opportunity for operators. Its drinkers tend to visit the on-premise more frequently than their peers, as a substantial 62% consume their preferred brand when out on a weekly basis. In comparison, the weekly consumption rate for international and other whisk(e)y segments hovers at around 50%.
In the autumn of 2022, the category experienced a decline in consumption, but rebounded in the spring of last year. International whisk(e)y followed a comparable pattern, with 75% of consumers opting for the segment in autumn 2022, compared with 77% in the spring. Canadian whisky stood out, showing a slight improvement in performance. Its consumption increased to 39% during autumn 2022 – a 1 percentage-point lift from the previous period.
Increased sales at with food
The robust performance of the international segment is attributable to increased sales within dining outlets, a preferred occasion for scotch and Japanese whisky drinkers. Japanese whisky, in particular, is often selected during celebratory meals (59%), food-centred business meetings (28%) and meals involving children (18%).
Consumption patterns within the rest of the international category demonstrate relatively more homogeneity. Around 64% of Canadian, Irish and Scotch whisk(e)y consumers choose to enjoy their drams during meals with friends, and nearly 50% during meals with family.
The total category experienced significant growth in fine dining establishments, with a remarkable 39% increase in the period between Q3 and Q4 of last year and a velocity that remained relatively stable heading into the first quarter of 2023. Japanese whisky emerged as the preferred subcategory in this setting, chosen by 35% of on-premise users, closely followed by Scotch (32%).
Meanwhile, Canadian and Irish brands outperformed the wider international category in casual dining chains, where Canadian whisky was selected by 51% of US on-premise users, while Irish whiskey was favoured by 49%. This contrasts with the average of 46% for international whisky/whiskey overall.
Impressive 35% increase in value of whisk(e)y-based cocktails
One important trend emerging from CGA’s OPUS tool is the significant increase in the value of whisk(e)y-based cocktails – their velocity between Q3 and Q4 of 2022 jumped by an impressive 35%. This surge played a pivotal role in the overall growth of cocktails in the US on-premise, which saw a 7% increase during the same period. The trend is particularly pronounced for Japanese and Irish whiskies, both highly favoured in cocktail bars, with 24% and 32% of whisk(e)y drinkers, respectively, choosing them in this type of venue.
The data clearly indicate that the international category presents a multitude of prospects in the US for brand owners and on-premise operators to capitalise on. By incorporating current insights into their strategic planning, stakeholders can effectively harness the category’s potential and achieve substantial gains in the dynamic channel.
Adapting swiftly and implementing optimal strategies will be crucial in seizing the opportunities that lie ahead in the coming months.
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