Craft spirits to continue strong growthCraft spirits to continue strong growth

Craft spirits are outpacing mainstream spirits brands and show signs of continued growth, according to research firm GuestMetrics.

Though craft spirits make up a relatively small portion of the total on-premise spirits market — about 3 percent by volume — independently distilled spirits have posted double-digit sales at food and beverage establishments and may benefit from the prior success of the craft beer industry, GuestMetrics said.

Craft spirits volumes were up 26 percent in the first quarter of 2013 compared to the same period in the prior year, outperforming mainstream spirits brands, which saw on-premise volumes down 2 percent during the same period. The number of brands producing craft spirits increased by 7.6 percent in the first half of 2013 versus a year ago.

“We see this as a healthy sign for the underlying demand for craft spirits. … [It] is likely a sign there is a lot of runway left for growth,” said GuestMetrics chief executive Bill Pecoriello.

Measured by beverage type, craft presence was strongest among tequilas, making up 4.9 percent of its market; followed by cordials, 3.8 percent; vodkas, 3.5 percent; brandies and Cognacs, 3.5 percent; bourbons and blends, 2 percent; rums, 1.6 percent; and gins, 1.3 percent. Scotch, Irish and Canadian whiskies had negligible volumes.

“Given the competitive nature of the alcohol industry and the generally sluggish growth being experienced in overall on-premise, the strong trends for craft spirits could be a source for incremental growth for both suppliers and operators,” GuestMetrics president Brian Barrett added.