1© WSET 2003-2010

The spirits market

2© WSET 2003-2010

Size of the markets - consumption

Size of the spirits market:• Global spirits market is about 2.22 billion cases• This is about 200 million hectolitres (mhl)

Size of the beer market:• Global beer market is over 15 billion cases• This is about 1.4 billion hectolitres

This is nearly seven times the size of the spirits market

3© WSET 2003-2010

Total alcohol consumption

Total alcohol consumption, per capita

0

5

10

15

20

1963 1973 1983 1993 2003

litr

es o

f p

ure

alc

oh

ol France

Italy

Spain

Germany

UK

USA

World Drink Trends 2005 (no longer published)

4© WSET 2003-2010

Per capita consumption of pure alcohol in the European Union

Per capita alcohol consumption

0

2

4

6

8

10

12

14

16

Lux'b

rg

Czech

Rep

Eston

ia

Hungar

y

Ger

man

y

Irelan

d

Austri

a

Spain

Franc

e

Denm

ark

Slova

kia

Portu

gal

UK

Cypru

s

Belgiu

m

Slove

nia

Lith

uania

Latvi

a

Finlan

d

Nether

land

s

Gre

ece

Italy

Roman

ia

Polan

d

Sweden

Malt

a

Bulga

ria

litre

s o

f a

lco

ho

l

Source: World Health Organisation Regional Office for Europe, 2008 (latest figures available)

5© WSET 2003-201031

Forecast

2003 2007 20122008

+ 5.25 %

2 238.7942 238.794

2 127.0972 127.0972 224.1232 224.123

+ 0.36 %

+ 4.56 %2 229.2422 229.242

Total World Consumption of Spirits Volume - Million 9 Litre Cases

Source: Vinexpo / The IWSR 2009

6© WSET 2003-2010

World spirits consumption, by region

Source : Vinexpo / The IWSR 2009

0

200

400

600

800

1000

1200

Asia Pacific Europe Americas Others

World consumption of spirits (million 9-l cases)

2003

2007

2012

47% share

31% share

19% share

3% share

Forecast change 2008 to 2012Asia -3%Europe -0.1%Americas +8%Others +10%

7© WSET 2003-2010

World spirits consumption, by category

Source : Vinexpo / The IWSR 2009

0

200

400

600

800

1000

1200

Loca

l Spts

Vodka

Brandy

Rum

Scotc

h

Liqueu

rs Gin

Bourb

on

Tequila

Cgnc/A

rm'c

Spirit consumption by category (million 9-l cases)

2003

2007

2012

8© WSET 2003-2010

Share of spirits consumption, by style

Spirits share by style, 2007

55%

23%

6%

5%4% 3% 2%

1% 1% 0%

Local Spts

Vodka

Brandy

Rum

Scotch

Liqueurs

Gin

Bourbon

Tequila

Cgnc/Arm'c

Source : Vinexpo / The IWSR 2009

9© WSET 2003-2010

The spirits market

Spirits Consumption by Country(millions of std cases)

606

284

161 161147 139 141

6049 46 42 38 33 30 25 21 18 16 15 15 12 9 9 9 9

0

100

200

300

400

500

600

700

Source: Vinexpo / The IWSR 2005

10© WSET 2003-2010

The ‘branded’ spirits market

Spirit Consumption of Branded Spirits, by Country

(millions of std cases)

161

4238 36

3330

16 15 1411 9 9 9 9 8 7

4 4 3 3 3 2 2 1 00

20

40

60

80

100

120

140

160

180

Source: Vinexpo / The IWSR 2005

11© WSET 2003-2010

Top ten international brands (2008 sales, m c/s)

Smirnoff (Diageo) Vodka 25.7 +5.8%

Bacardi (Bacardi) Rum 19.64 -1.3%

Johnnie Walker (D’go) Scotch 16.3 +3.2%

Absolut (P-R) Vodka 10.73 +/-

Jack Daniel’s (B-F) Bourbon 9.52 +2.0%

Pitú Cachaça 9.51 +2.1%

Nemiroff Vodka 8.55 -3.8%

Captain Morgan (D’go) Rum 8.3 +6.4%

Baileys (Diageo) Liqueur 7.6 -1.3%

Source: Drinks International Millionaires Report 2009, July 2009

12© WSET 2003-2010

Top ten domestic/local brands (2008 sales m c/s)

Jinro Soju 75.99 + 8.8%Tanduay Rum 16.29 +12.9% Bagpiper Indian whisky 15.41 +10.5%McDowell’s No. 1 Indian whisky 13.39 +16.8% Green Mark Vodka 11.97 +47.8%C1 Soju 10.50 + 1.0%McDowell’s No. 1 Rum 9.67 +26.7%Officer’s Choice Indian whisky 9.50 +43.9%Iichiko Shochu 9.14 - 7.4%Original Choice Indian whisky 8.84 +37.9%

Source: Drinks International Millionaires Report 2009, July 2009

13© WSET 2003-2010

Fastest growing brands (2008 sales, m c/s)

International

Wyborowa (P-R) Vodka 2.32 +30.3%

William Lawson’s (Bac) Scotch 1.50 +15.4%

Havana Club (P-R) Rum 3.40 +13.3%

Domestic/Local

Khlibnyi Dar (Ukraine) Vodka 6.63 +85.7%

Silver Cup Indian brandy 1.42 +80.8%

Old Tavern Indian whisky 4.77 +68.0%

Source: Drinks International Millionaires Report 2009, July 2009

14© WSET 2003-2010

Trends in the spirits market

• Forecast is for static consumption to 2012

• Asia forecast to slow, Americas to grow

• Global companies using local investment to gain market share for international brands

NB. Vinexpo/IWSR data collated during 2008, using 2007 figures, so before global recession took hold.