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Euromonitor: Global spirits grow at the slowest rate in 2014 since 2008

Published:  27 July, 2015

Euromonitor International's most recent report, Trends in the Global Spirits Markets, reveals that despite the hype around spirits, the category grew at the slowest rate in 2014 since the start of the global financial Crisis.

Jeremy Cunnington, the head of alcoholic drinks research at EuromonitorInternational said: "Global spirits grew at its slowest rate in 2014 since the economic crisis of 2008- 2009.  Volumes grew in 2014 by less than 2%, which is far beneath the trend."

According to Cunnington the economic challenges like that of the Euro crisis in Greece for example are taking a toll. He also said that the economic challenges are equally affecting both mature and emerging markets and hitting international brands hard.

"This is an unusual occurrence as in the past either one of the emerging markets or developed markets have been able to grow.  This has greatly impacted brands particularly international ones," said Cunnington.

He named both Diageo and Barcardi, giants within the drinks category, as suffering more due to the exposure of these brands in smaller more volatile markets. He said: "Those most impacted are those that have been focused on a small number of markets. It has really hurt brands like Diageo's Smirnoff or Bacardi's rum brand.

It is not all bad news though according to Cunnington, certain categories are still showing strong areas of growth like Irish whiskey and gin.

Cunnington said that the Jameson brand is doing well "primarily thanks to the Jameson brand in the US."

"But one is also seeing growth in mature categories- noticeably gin, which has broken out from its core markets and is actually developing throughout Western Europe. This is being driving by premium brands such as Bombay Sapphire and Tanqueray, but also by super premium brands such as Hendricks" said Cunnington.