The definiTive ranking of The world's million-case spiriTs brands June 2012 The definiTive ranking of The world's million-case spiriTs brands 2012 The The June 2012 drinksint.com 3 welcome to the club here are clubs for ladies, for gentlemen, the gentry and the socially sedentary. Clubs where handshakes, back-slaps and ridiculous blazers Tmaintain a cosy elitism. The Millionaires’ Club is not one of these clubs. Here we favour meritocracy over cronyism – if a spirits or liqueur brand sells a million 9-litre cases it’s in, if it doesn’t, it’s out. This year the revolving door has welcomed more brands than it has ejected, with membership now numbering 181. We have a slew of novice Millionaires – affirmation to burgeoning brands that if you get the proposition and market right, the million-case mark is eminently achievable. contents Of the newcomers to Millionaire status there’s La leADer voDkA Martiniquaise’s Poliakov vodka, which inched its way past the Hamish Smith plays secretary 3 Lowdown on Europe’s favourite 23 million-case mark, presumably in the very last knockings of 2011. Then you have Cîroc which, through P Diddy’s notoriety mArket overvIew rum & cAchAçA and Diageo’s know-how, managed to pole-vault nearly 50 of its By Euromonitor International 5 Latin America’s heavyweights 29 competitors to debut at 133. The global analysts at Euromonitor International have also Full lIStIng cognAc & brAnDy unearthed some new names. There are those that have quietly All 181 Millionaire brands 9 The little and large grape spirits 30 amassed sales but been shy up to now about opening their ledgers. For those maintaining a non-declaration policy, the chArt toPPerS SoJu & Shochu arrival of the Philippines’ Emperador to the list should dispense Global, Regional and Local 13 Home to the number one brand 31 with the need for rhetoric. The brand debuted at number four in the list and FasteSt growIng other cAtegorIeS simultaneously announced itself to the drinks world as the The movers – and the losers 16 Gin, Liqueurs, Tequila et al 33 number-one selling brandy. Glenfiddich’s advancement is also worth a column inch. The whISkIeS the mAJor PlAyerS Speyside malt is somewhat of an avant-garde figure among Scotch, Indian, US and others 18 The groups that own the brands 36 the 100 or so scotch distilleries that, up to now, might have resigned to thinking their place in life was in the narrow, not broad market. With the likes of The Glenlivet poised a few hundred thousand cases short of a million, Glenfiddich may be the With more than 800 analysts researching 205 countries, Euromonitor International pioneer, but it won’t be the single single malt in the list for long. provides global strategic intelligence on industries, countries and consumers. We The trapdoor has claimed its victims too. This year’s key publish internationally comparable statistics, market research focusing on industry absentee is Stock Spirits’ Prestige vodka, a brand that thrust on trends and opportunities, as well as news analysis from industry experts. Our global to the scene last year after 400% growth in 2010. But let’s not information system, Passport, is used by the world’s leading alcoholic drinks companies dwell on the fallen. Let’s celebrate the class of 2012. Welcome for a stronger understanding of global markets and the strategic business planning to The Millionaires’ Club. process. We offer a complete picture of the commercial environment by monitoring markets, related industries, operating conditions and consumer trends. As a fast moving Hamish Smith consumer goods research house, we understand the dynamics of the consumer market Supplement editor and, with more than 35 years’ experience, have unrivalled expertise in this sector. Supplement editor Production editor Senior Account manager Publisher Hamish Smith Jaq Bayles Carmen Poel Francesch Russell Dodd +44 (0)1293 590045 +44 (0)1293 590048 +44 (0)1293 590042 +44 (0)1293 590052 [email protected] [email protected] [email protected] [email protected] Drinks International, Zurich managing editor commercial Director Senior Account manager Supplement Design House, East Park, Crawley, West Christian Davis Justin Smith Roger Betríu Amber Stoddart Sussex RH10 6AS UK +44 (0)1293 590047 +44 (0)1293 590041 +44 (0)1293 590043 Tel: +44 (0)1293 590040 [email protected] [email protected] [email protected] Fax: +44 (0) 1293 474010 The June 2012 drinksint.com 5 euromonitor International senior drinks analyst Jeremy cunnington provides the background to this year’s Millionaires supplement Back story shutterstock/Alex saberi n Euromonitor International’s and breadth of the Chinese baijiu market, however, did suffer the loss of its position fifth year of carrying out the with four brands having taken part this For the of having the world’s leading whisky research for The Millionaires’ year. Yet these baijus’ combined volume ❝ brand when its Bagpiper brand was Club, the 2012 rankings (2011 sales of more than 20 million cases, first time we overtaken by its stablemate McDowell’s sales) saw another record in only account for around 4% of the total have gained and, more importantly, Allied Iterms of numbers of brands in the list, amount of baijiu sold in China in 2011. Blenders & Distillers’ with 181. And this is despite a number of This year’s list also saw a tie in terms insight into Officer’s Choice brand. brands dropping out due to fluctuations in of companies with the most Millionaire Diageo remains the market. brands – both Pernod Ricard and United the size and the third biggest Brandy/ The list continues to broaden and Spirits boast 22. Pernod Ricard saw its breadth of company in terms of cognac deepen its spread, with the number increase by one with the number of brands, first ever brand from addition of its local Brazilian the Chinese seeing its total rise 151m cases Kazakhstan (Haoma) vodka, Orloff, while baijiu by two to 16. One of making an entrance, United Spirits added these came about through as well as the first two – a new gin in market, the acquisition of Turkish giant single malt scotch, Carew Dry and with four Mey Içki, which gave the company the Glenfiddich. Baijiu a more premium Yeni Raki brand. The other addition, the For the first time brandy, McDowell’s brands taking super-premium Cîroc vodka was the result 456m cases we have gained an VSOP. part of organic growth. insight into the size United Spirits, ❞ Local brands increased page 6 The 6 June 2012 drinksint.com their domination of in Asia has driven that BrIght future the list, accounting category’s growth. With many of the emerging market for 103 brands (up By contrast there economies expected to continue to grow from 93 last year), Vodka is still a demand in and help raise the prosperity of many and demonstrating 421m cases ‘western’ markets for consumers, the demand for higher quality that the vast majority cheaper brands, as products will offer of spirits are still witnessed by the growth opportunities for consumed in their of economy vodkas such not just premium country of origin. as UV and Svedka. rum international The number of global brands Premiumisation can be further spirits, but also increased to 59, although overall spirits seen in emerging markets with the strong 165m cases more premium volumes grew by 2% in 2011. The growth of more premium international local spirits number of regional brands fell to 19 as spirits brands and categories, such variants (such as several, including Castillo, dropped out of as in vodka and blended scotch, McDowell’s VSOP the list. at the expense of cheaper brandy in India). It is In terms of the largest local brands. Consequently, interesting to note that many of Pernod categories, both vodka brands such as Smirnoff, soju/ Ricard’s 2011 local Indian spirits launches cachaça and whiskies dominate, Absolut and Skyy in Brazil, shochu were for more premium variants of its with a combined total of and whiskies in Poland led local brands in the country. 111m cases 222m cases (estimated) 107 Millionaire brands by Ballantine’s, have grown However, even with these trends there between them. Vodka rapidly, hitting volume (estimated) will still be huge demand for the cheaper is slightly ahead with 59. sales of the Pirassununga 51 local products Apart from these two spirits, no cachaça brand in Brazil and a as the majority of other category has more than 20 brands in large number of local Polish vodka these countries’ the list. Rum is the next highest with 14, brands. populations will liqueurs followed by brandy with 11. However, this does not mean that only be able Vodka’s number of million-case cheaper domestic/local brands in emerging to afford these 100m cases selling brands can be attributed to its markets are not performing. This year’s products for the ease of production and the fact that its list has seen quite possibly the foreseeable future. lack of taste complexity makes it very largest actual increase in the Yet, at the same time popular among consumers around the history of the Millionaires’ gin as emerging markets are offering great world. Hence, not only is Club with the opportunities for growth for international there vodka produced in Philippine 60m cases spirits brands and their owners, the the traditional vodka- Emperador mature core markets should not be consuming markets of brandy more overlooked. eastern Europe, but than doubling its Not only do these markets account also in many western volumes and increasing for the majority of the brands’ volumes, Whiskies European countries, its sales by more than revenues and profits, they also offer great the US, India, Brazil 302m cases 10 million 9-litre cases.