MADE IN COGNAC: CRAFT SPIRIT BUSINESS IS LOOKING GOOD IN THE USA

Monday, October 31, 2016

The last time I check just about 4 or 5 years ago there were approximately 250 distilleries in the USA.

Now this week the Spirits Business online news announces 1315 distilleries in the USA.

What happened?

The US craft spirits industry is booming according to The American Craft Spirits Association (ASCA) and the International Wine and Spirits Research (IWSR).

Through collaboration these two organizations are currently running a research called the 'Craft Spirits Data Project'.

Main Findings from the Craft Spirits Data Project:

The U.S. craft spirits industry is growing rapidly. As of August 2016, there were 1,315 craft distillers active in the U.S. The U.S. craft spirits market reached 4.9 million cases and $2.4 billion in retail sales in 2015, growing at a compound annual growth rate (CAGR) of 27.4 percent in volume and 27.9 percent in value between 2010 and 2015. The market share of U.S. craft spirits reached 2.2 percent in volume and 3.0 percent in value in 2015, up from 0.8 percent and 1.1 percent in 2010, respectively.
Exports offer an additional runway for growth. Exports of U.S. craft spirits reached 523,000 cases in 2015, adding more than 10% of additional volume to U.S. craft distiller total sales.
Employment and investment are on the rise among craft distillers. In 2016, the industry employed over 12,000 full-time employees (FTEs). Investments by the U.S. craft industry have reached close to $300 million in 2015, which primarily covered the build out of tasting rooms and other visitor experiences, equipment to increase production capacity, and associated labor costs.
Geographically, the study found the US craft distilling market to be “concentrated”, with the top five states (states containing the highest number of craft distilleries) making up 35.6% of the category: California, New York, Washington, Colorado and Texas.
The next five states – Oregon, Pennsylvania, North Carolina, Ohio and Florida – comprise an additional 16.5% of the market.

MADE IN COGNAC