Huge and Growing Global and Domestic Markets

The global spirits market had total revenues of $617.8bn in 2016, representing a compound annual growth rate (CAGR) of 5.5% between 2012 and 2016.¹

The United Kingdom spirits market has shown continued growth with a record 51 million bottles of gin worth almost £1.4 billion sold in 2017, an increase of 27% in volume (the equivalent of over 9.5 million bottles) compared to 2016.²

The 2017 IWSR report predicts that gin demand in the UK will grow by 37.2% by 2021.³

The U.S. spirits market had total revenues of $26.2 billion in 2017, representing a 32% increase since 2010. The domestic market share of spirits compared to beer and wine was at a record 36.6% in 2017, representing more than a 3% gain over beer and wine in terms of market share since 2010.⁴

The market share of “craft” distillers (defined as any producer that bottles less than 100,000 cases annually) has doubled over the last two years, and is projected to reach 8% by 2020.⁵

Millennials are shifting their alcohol consumption habits away from beer and wine to spirits. The survey stated that 41% of Millennials now prefer liquor and other spirits as their alcoholic beverage of choice, an increase from the year-earlier period when the figure was 36%.⁶ In addition, in 2018, sales rose for the eighth consecutive year, driven by Millennials' taste for high-end and super premium spirits.⁷ 

Associated products have also enjoyed an increase in demand. Since its Initial Public Offering in 2014, tonic manufacturer Fever Tree has seen it’s share price surge by 3,400% (LSE: FEVR | Market Cap: $5.6B).⁸

_{1 Marketline, Global Spirits Report, August 2017}

_{2 Wine and Spirit Trade Association, March 12, 2018}

_{3 IWSR Forecast Report, 2017}

_{4 Distilled Spirits Council of the United States (DISCUS)}

_{5 The American Distilling Institute}

_{6 2017-2018 BofA Merrill Lynch Global Research Survey}

_{7 Distilled Spirits Council of the United States (DISCUS)}

_{8 As of September 5, 2018}