Spirits in china

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Spirits in China

Trends

During the first half of 2008, the nation has experienced a number of natural disasters, including the May 12 earthquake in Sichuan province and the snow storm close to the Spring Festival. These events reduced Chinese consumers' enthusiasm for going out for a drink, and for entertainment in bars and clubs, as many people preferred to do something for those who had been directly affected rather than organising entertainment activities. According to trade sources, volume sales growth for imported spirits in 2008, such as whisk(e)y, brandy and cognac, and rum was slower than in 2007, especially in the on-trade channel.

Rum is seen as a trendy and new option in bars and clubs, and appeals particularly to young consumers. Consumers aged between 20 and 35 years old, especially young working women, are increasingly drinking Bacardi rum mixed with soft drinks, such as cola or soda water, when they are at bars/clubs with friends. Deals like “buy-one-get-one-free” and a free drink upon entry into clubs or pubs have been catalysts in helping rum become the fastest growing product within spirits in 2008.

The average unit price of spirits witnessed a significant increase in 2008, of 9%, due largely to spirits players putting up product prices. In 2008, increasing pressure from rising production costs has been placed on spirits manufactures, forcing them to increase unit prices. For instance, premium Chinese spirits brands, such as Wuliangye and Maotai, raised their unit prices by around 30% between 2007 and 2008, while prices of economy and mid-to-low-end products also increased, by approximately 10%, in order to offset ongoing price increases from raw materials such as grain, the price of which rose by around 30%, and also higher transportation costs, which were estimated to be up by at least 10% between 2007 and 2008.

Whisk(e)y remains the major type of imported spirit in China. Sales have benefited from the ongoing efforts of leading brands, such as Chivas Regal and Johnnie Walker, in marketing and consumer education, with an increasing number of Chinese consumers choosing whisk(e)y in bars/clubs and karaoke bars, and as gifts for friends and relatives. Many Chinese consumers, especially younger ones, prefer to mix whisk(e)y with green tea or other soft drinks to create Chinese style cocktails.

Over the review period, the volume growth rate of on-trade spirits was slightly higher than off-trade volume growth. Consumers' spirits preferences vary according to the channel, with the majority of imported spirits, such as whisk(e)y, vodka, gin and liqueurs, being distributed via on-trade outlets, such as pubs, clubs and karaoke bars, while the majority of sales of domestic spirits (included in “other spirits”) come from off-trade outlets, such as supermarkets/hypermarkets.

Demand for super-premium products saw growth in the latter part of the review period in both the on-trade and off-trade channels. In the off-trade, demand was chiefly driven by gift giving for special occasions, such as Chinese Spring Festival and National Holiday. In addition to premium or super-premium Chinese spirits - baijiu - many consumers like to purchase super-premium imported products, such as whisk(e)y and vodka as a gift. Rising consumption at night clubs and bars has also driven overall growth, with an increasing number of middle-aged businessmen preferring to choose super-premium whisk(e)y products, in line with their personal status, to entertain their guests or business partners.

Domestic Chinese white spirits continued to dominate overall sales of spirits in 2008. Driven by strong demand for premium Chinese white spirits, especially at business occasions, leading premium Chinese white spirit brands, such as Maotai and Wuliangye, recorded dynamic growth between 2007 and 2008.

Local and international spirits tend to have different loyal consumer groups in China. The majority of Chinese local spirits, especially the premium ones, remain a popular choice for business men to treat others at business occasions, while imported spirits products, including whisk(e)y, vodka, rum and gin, tend to be consumed by young adults adopting Western culture and lifestyles, and with the habits of clubbing and dining out. However, businessmen are increasingly consuming spirits which are regarded as status symbols, such as whisk(e)y.

Flavoured vodka accounted for a 38% share of vodka sales in 2008. Key vodka flavours are citrus, cranberry, lemon, cherry and apple. Among these flavours, citrus and lemon tend to be the most popular flavours among younger consumers, while apple was a new flavour innovation for the summer. Absolut launched its apple flavoured vodka in a green bottle, to convey a cool and refreshing product message to its target consumers.

Other blended Scotch whisky continued to dominate volume sales of whisk(e)y in 2008, with actual sales of 20 million litres, corresponding to an 88% share of total volume sales of whisk(e)y. Leading brands, including Johnnie Walker and Chivas, have put more effort into marketing and advertising activities across cities in China, pushing up consumption of other blended Scotch whisky in both on-trade channels, such as nightclubs and karaoke bars, and off-trade channels, like supermarkets/hypermarkets.

Sales of bitters remain negligible in China, as a result of low product awareness among Chinese consumers. Such products can be found only in big cities, like Shanghai and Guangzhou.

Brandy recorded marginal volume growth of less than 3% between 2007 and 2008. Domestic brands such as Zhangyu dominate the low-end segment, with most of their sales coming from second and third tier cities, and rural areas, while international brands, such as Hennessy, mainly cater to the high-end market in first tier cities, such as Shanghai, Guangzhou and Beijing.

Latin-inspired drinks, such as tequila, are becoming more popular in China. Younger consumers living in metropolitan cities like Shanghai have tended to be fascinated by Latin culture, with many of them starting to learn Latin dancing and trying Latin food and drinks. As such, tequila, one of the most popular Latin-inspired drinks, recorded strong volume growth of over 12% in 2008.

Production, Imports and Exports

In 2007, total production volume of Chinese local spirits was around 4.9 billion litres. Overall volume sales of Chinese local spirits in China tend to be quite close to production volume, as the majority of the products are consumed domestically and the inventory rate for Chinese local spirits tend to be low. However, Euromonitor's market size for Chinese local spirits is lower than the production figure, as over 25% of products are sold through institutional channels, such as group purchases for the army and also through the duty-free channel. These sales are not included in Euromonitor International figures.

Whisk(e)y, cognac and rum were the top three categories among imported spirits in 2007. The total volume of whisk(e)y imported in 2007 was around 20 million litres, brandy and cognac imports were 15 million litres and rum imports amounted to 8 million litres. Among whisk(e)y imports, imported brands from the UK dominate, amounted to 19 million litres. Imports of vodka witnessed a decline after several years of robust growth, to stand at 2 million litres in 2007.

The majority of domestic spirits are consumed within China, with only limited volumes being exported to other countries, as the flavour of Chinese domestic spirits is quite strong and not easily accepted by consumers in other countries, such as the US and the UK.

Published official statistics in China do not record total production volume for most of the spirits subsectors except “other spirits”. Sales of “other spirits” in 2008, according to Euromonitor International definitions, amounted to around 75% of apparent consumption as derived from production, import and export data. This is largely due to Euromonitor International's research definition excluding institutional sales.

Competitive Landscape

Wuliangye Yibin Co Ltd leads the fragmented spirits sector in China, with 2% of sector volume sales in 2007, which represented a substantial drop from over 3% in the previous year. The decline in sales for Wuliangye in 2007 was largely due to the company's product restructuring policy, which aimed to reduce production and volume sales of low- end to-mid-market spirits, and focus instead on premium products, which offer better profit margins for the company. As such, Wuliangye's sales of lower and mid-range local spirits declined by around 54% between 2006 and 2007, to 22 million litres, while its upper mid-range local spirits also witnessed a sharp decline, from 50 million litres in 2006 to 25 million litres in 2007. Conversely, its premium product under the Wuliangye brand saw a slight share gain 2007, with sales increasing to 15 million litres.

Diageo increased its share in the whisk(e)y subsector in 2007, with its flagship brand Johnnie Walker accounting for approximately 33% of total whisk(e)y sales in 2007, a five percentage point share gain in comparison with 2006. Its success has been built on strong brand loyalty in on-trade channels, such as bars/clubs and karaoke bars.

Although sales of other spirits (baijiu) account for 98% of total spirits sales, and are dominated by domestic players, international brands are seeing sales volumes increase in the wider spirits sector, mainly due to increasing demand for international brands in many areas of spirits. Vodka, gin, rum, whisk(e)y, cognac and tequila tend to be dominated by foreign brands, such as Bacardi, Absolut and Chivas.

A notable new launch in the latter part of the review period was Absolut Pear, which is a flavour extension of Pernod Ricard's vodka brand Absolut, which was acquired from V&S Vin & Sprit AB in 2008. The product retails at around RMB118 for 700ml, and is made with French pears, mixed with winter wheat. The originality of its ingredients gives the product a high-end image.

Premium and super-premium brands compete on the basis of their superior quality and packaging. Through advertising, premium brands of both Chinese local spirits, such as Maotai and Wuliangye, as well as international premium spirits, such as Chivas Revolve 1801 and Ballantine's 17 YO are viewed as ideal gifts for friends or relatives, as Chinese consumers are willing to pay more for a gift to show their own generosity and economic status.

Private label spirits are rarely seen in China. In a relatively fragmented market, consumers can always find appropriate brands for drinking at home or elsewhere. Due to the wide availability of economy baijiu brands, it is difficult for private labels to compete on price.

The May 2008 earthquake had a negative impact on the production of leading manufacturers such as Sichuan Jian Nan Chun (Group) Co Ltd, whose production base is located in the city of Mian Zhu, Sichuan province, which was seriously affected by the earthquake. According to trade sources, total production of baijiu in Sichuan province accounted for around 18% of the national total. The earthquake destroyed some production sites, where leading manufacturers not only produce baijiu for retail sales, but also manufacture baijiu concentrates for other manufacturers in provinces like Shandong and Henan. This might have a temporary negative impact on production volume.

In 2007, Sichuan Quanxing Co Ltd continued its strategy of providing high quality premium spirits under its Shuijinfang brand. Targeted at the high-end market, Shuijinfang launched a series of advertising and promotional activities across the country, including the 2007 Shuijinfang City Tennis Games and the 2007 CCTV Business Leader Programme, to enhance its premium image and brand loyalty. Meanwhile, Diageo's takeover of Sichuan Quanxing also helped the internationalisation process of Shuijinfang. For instance, the company has made a trial test of the Shuijinfang brand in South Asian countries, and is launching new products tailored for younger consumers in international markets.

Prospects

Spirits are predicted to see a volume CAGR of 5% between 2008 and 2013. Due to the saturated nature of baijiu (included in other spirits), especially economy and mid-range baijiu, which dominate spirits volume sales, forecast growth is likely to be below that of the alcoholic drinks market as a whole. The most dynamic area will be imported spirits, such as whisk(e)y, tequila and rum, aided by growing demand for cocktails in the on-trade channel in China. In the premium local spirits segment, robust growth will be driven mainly by demand for gift purposes and business occasions, with the segment recording a volume CAGR of 10% between 2008 and 2013.

Previous projections for volume growth in vodka, of a 21% CAGR between 2008 and 2013, have been revised downwards to around 11%. This is mainly a result of intensified competition since 2007, and only the most successful brands, such as Absolut and Smirnoff, which have a strong brand image, effective promotion and wide distribution coverage, will succeed. Small imported brands have suffered from rushing into the so-called “hot market” of white spirits, and have gradually disappeared.

The forecast performance of spirits will be threatened by increasing competition from beer and wine. Rising raw materials costs for local spirits manufacturers, as well as higher distribution costs, will also negatively impact local spirits players, especially those at the low end of the market. Meanwhile, the 2007 bull market in shares has ended, leaving a bear market in 2008, which will have a negative impact on both spirits consumers and the domestic listed spirits companies.

Dynamic growth in whisk(e)y is expected to continue over the forecast period. According to trade sources, the majority of current consumption of whisk(e)y occurs in first tier cities, like Shanghai, Beijing and Shenzhen, while demand from second tier cities, such as Hangzhou in Zhejiang Province and Nanjing in Jiangsu Province, is still at the developing stage. Baked by intensive marketing activities and ongoing consumer education, emerging demand from lower tier cities is likely to drive volume growth in whisk(e)y during the forecast period.

The trend for average unit prices to rise is unlikely to stop during the forecast period. Higher value sales will be generated by the expansion of premium brands; meanwhile, rising costs on the production side will put pressure on spirits manufacturers, which will have to resort to imposing price increases in order to cover costs.

New product launches introduced in 2007 and 2008 are expected to be accepted by consumers in the short term at least, due to their unique selling points. The cool and fresh image of Absolut Pear is mostly likely to appeal during warm summers, and might be less popular among consumers in other seasons.

Sector Background

Vodka, Gin and Other Blended Scotch Whisky Price Band Methodology

Classification for vodka, gin and other blended Scotch whisky is based purely on pricing, taking a typical brand, usually the leading brand by volume as the benchmark price, which is indexed as 100%. The benchmark brand will usually be a standard priced brand. There will be exceptions, however, whereby an economy brand (likely for vodka in some countries in Eastern Europe) or a premium brand (typically the case for Scotch whisky in the US) is used as the benchmark brand. Refer to the guidelines below for further detail.

Based on benchmark brand being standard:

Super-premium: 30%+ higher than the price of the benchmark brand

Premium: 10-29.99% higher than the price of the benchmark brand

Standard : Between 9.99% lower or 9.99% higher than the price of the benchmark brand

Economy: At least 10% lower than the price of the benchmark brand

Based on benchmark brand being economy

Super-premium: 50%+ higher than the price of the benchmark brand

Premium: 30-49.99% higher than the price of the benchmark brand

Standard: Between 10% and 29.99% higher than the price of the benchmark brand

Economy: Anything lower or up to 9.99% higher than the price of the benchmark brand

Based on benchmark brand being premium:

Super-premium: 10%+ higher than the price of the benchmark brand

Premium: Any brand that is up to 9.99% higher or 9.99% lower than the price of the benchmark brand

Standard: Between 10% and 29.99% lower than the price of the benchmark brand

Economy: Anything 30%+ lower than the price of the benchmark brand

Based on benchmark brand being super-premium:

Super-premium: Anything higher or up to 9.99% lower than the price of the benchmark brand

Premium: 10% to 29.99% lower than the price of the benchmark brand

Standard: 30% to 49.99% lower than the price of the benchmark brand

Economy: 50%+ lower than the price of the benchmark brand

Published Data Comparisons

National Consumer Expenditure

According to the National Bureau of Statistics, total volume production of Chinese local spirits in 2007 was 4,939 million litres. Production data is quite close to overall volume consumption of Chinese local spirits, as almost all Chinese local spirits are consumed domestically, and these spirits tend to be consumed in the same year that they are produced. Total volume consumption figures from national statistics are around 30% higher than Euromonitor International estimates. This is due to the use of different definitions, as Euromonitor International data exclude institutional sales, as well as cash and carry sales, which are a key feature of the Chinese local spirits market.

Sector Data

Table 1 Sales of Spirits by Subsector: Total Volume 2003-2008

'000 litres

2003 2004 2005 2006 2007 2008

Whisk(e)y 4,404.1 7,612.6 13,249.3 16,859.7 20,384.6 23,042.7

- Single malt Scotch - 135.0 163.8 203.8 259.2 321.5

whisky

- Blended Scotch whisky 3,479.9 6,268.9 11,596.6 14,851.9 18,004.3 20,253.6

- Bourbon/other US 487.1 763.3 1,029.6 1,331.4 1,636.2 1,971.6

whiskey

- Canadian whisky 437.1 445.4 459.2 472.5 484.9 496.1

- Irish whiskey - - - - - -

- Japanese whisky - - - - - -

- Other whisk(e)y - - - - - -

Brandy and Cognac 35,987.7 38,231.6 41,274.5 44,175.9 46,918.3 49,656.1

- Brandy 31,453.8 31,433.2 32,469.6 33,495.1 34,514.7 35,502.8

- Cognac 4,533.9 6,798.4 8,804.9 10,680.8 12,403.6 14,153.3

White spirits 1,121.9 1,564.7 2,113.2 2,785.2 2,555.8 2,504.9

- Gin 256.7 290.2 332.1 375.5 420.6 466.5

- Vodka 865.2 1,274.4 1,781.1 2,409.7 2,135.2 2,038.5

Rum 165.8 186.1 211.8 241.0 496.6 635.5

- White rum 128.3 144.3 164.6 188.7 393.3 508.1

- Dark rum 37.5 41.8 47.1 52.3 103.3 127.4

Tequila (and Mezcal) 98.1 108.0 120.6 133.0 148.0 165.9

Liqueurs 553.6 617.6 689.5 754.4 813.8 864.4

- Cream-based liqueurs 66.4 74.4 83.1 91.5 99.6 106.7

- Bitters - - - - - -

- Other liqueurs 487.1 543.3 606.4 662.9 714.2 757.7

Other spirits 3,605,48 3,575,57 3,569,21 3,551,36 3,649,29 3,771,48

2.8 8.1 0.4 6.1 3.9 9.3

- Chinese herbal spirits 33,496.1 43,000.0 54,499.5 66,814.4 79,489.4 92,366.1

- Economy Local Spirits 1,762,32 1,704,23 1,641,09 1,565,39 1,584,08 1,612,90

4.3 9.5 9.4 1.9 6.3 9.7

- Lower mid-range local 1,108,14 1,101,56 1,115,62 1,126,23 1,152,51 1,186,69

spirits 9.9 2.7 2.5 7.6 3.0 6.4

- Premium local spirits 158,204.9 167,041.9 177,956.4 191,043.5 206,245.9 223,890.5

- Upper mid-range local 543,307.5 559,734.0 580,032.6 601,878.7 626,959.3 655,626.6

spirits

Spirits 3,647,81 3,623,89 3,626,86 3,616,31 3,720,61 3,848,35

4.0 8.6 9.2 5.2 1.0 8.9

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 2 Sales of Spirits by Subsector: Total Value 2003-2008

RMB million

2003 2004 2005 2006 2007 2008

Whisk(e)y 2,289.3 4,268.1 7,798.5 10,349.9 13,119.9 15,591.0

- Single malt Scotch - 70.9 88.5 112.9 152.4 201.7

whisky

- Blended Scotch whisky 1,852.9 3,595.8 6,938.8 9,297.4 11,795.4 13,942.1

- Bourbon/other US 255.7 412.6 568.5 726.8 943.0 1,201.4

whiskey

- Canadian whisky 180.7 188.8 202.7 212.9 229.1 245.8

- Irish whiskey - - - - - -

- Japanese whisky - - - - - -

- Other whisk(e)y - - - - - -

Brandy and Cognac 6,353.9 9,315.2 12,076.1 14,871.7 17,991.4 21,542.0

- Brandy 1,229.6 1,240.9 1,242.8 1,259.6 1,344.4 1,447.1

- Cognac 5,124.3 8,074.3 10,833.3 13,612.1 16,647.0 20,094.9

White spirits 360.5 530.9 743.4 1,009.7 975.0 1,005.1

- Gin 78.4 90.5 104.8 120.1 141.0 163.9

- Vodka 282.1 440.5 638.6 889.5 834.0 841.2

Rum 46.3 56.6 68.1 80.1 183.2 249.6

- White rum 35.8 43.9 53.4 63.5 147.6 203.1

- Dark rum 10.5 12.7 14.6 16.5 35.6 46.5

Tequila (and Mezcal) 27.3 41.8 49.0 55.8 64.9 76.3

Liqueurs 294.6 332.0 379.7 425.0 480.6 535.7

- Cream-based liqueurs 31.1 35.8 40.8 45.7 52.7 59.8

- Bitters - - - - - -

- Other liqueurs 263.5 296.2 338.9 379.3 427.9 475.9

Other spirits 131,498.0 143,601.3 158,392.9 173,315.5 191,896.1 214,446.9

- Chinese herbal spirits 4,494.3 6,463.6 8,672.3 11,332.7 14,066.9 17,242.1

- Economy Local Spirits 11,980.0 12,044.8 12,189.4 12,258.6 12,979.7 13,866.0

- Lower mid-range local 40,309.0 42,043.4 43,853.6 45,351.3 48,610.9 52,516.3

spirits

- Premium local spirits 31,352.5 35,964.3 42,389.4 49,002.9 56,016.2 64,775.1

- Upper mid-range local 43,362.3 47,085.1 51,288.3 55,370.0 60,222.5 66,047.4

spirits

Spirits 140,869.8 158,145.9 179,507.8 200,107.6 224,711.1 253,446.6

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 3 Sales of Spirits by Subsector: % Total Volume Growth 2003-2008

% total volume growth

2007/08 2003-08 CAGR 2003/08 TOTAL

Whisk(e)y 13.0 39.2 423.2

- Single malt Scotch whisky 24.0 - -

- Blended Scotch whisky 12.5 42.2 482.0

- Bourbon/other US whiskey 20.5 32.3 304.7

- Canadian whisky 2.3 2.6 13.5

- Irish whiskey - - -

- Japanese whisky - - -

- Other whisk(e)y - - -

Brandy and Cognac 5.8 6.7 38.0

- Brandy 2.9 2.5 12.9

- Cognac 14.1 25.6 212.2

White spirits -2.0 17.4 123.3

- Gin 10.9 12.7 81.7

- Vodka -4.5 18.7 135.6

Rum 28.0 30.8 283.2

- White rum 29.2 31.7 295.9

- Dark rum 23.3 27.7 240.0

Tequila (and Mezcal) 12.1 11.1 69.1

Liqueurs 6.2 9.3 56.1

- Cream-based liqueurs 7.0 9.9 60.6

- Bitters - - -

- Other liqueurs 6.1 9.2 55.5

Other spirits 3.3 0.9 4.6

- Chinese herbal spirits 16.2 22.5 175.8

- Economy Local Spirits 1.8 -1.8 -8.5

- Lower mid-range local spirits 3.0 1.4 7.1

- Premium local spirits 8.6 7.2 41.5

- Upper mid-range local spirits 4.6 3.8 20.7

Spirits 3.4 1.1 5.5

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 4 Sales of Spirits by Subsector: % Total Value Growth 2003-2008

% local currency, current value growth

2007/08 2003-08 CAGR 2003/08 TOTAL

Whisk(e)y 18.8 46.8 581.0

- Single malt Scotch whisky 32.3 - -

- Blended Scotch whisky 18.2 49.7 652.4

- Bourbon/other US whiskey 27.4 36.3 369.9

- Canadian whisky 7.3 6.4 36.1

- Irish whiskey - - -

- Japanese whisky - - -

- Other whisk(e)y - - -

Brandy and Cognac 19.7 27.7 239.0

- Brandy 7.6 3.3 17.7

- Cognac 20.7 31.4 292.1

White spirits 3.1 22.8 178.8

- Gin 16.3 15.9 109.0

- Vodka 0.9 24.4 198.2

Rum 36.2 40.1 439.0

- White rum 37.6 41.5 467.0

- Dark rum 30.7 34.7 343.6

Tequila (and Mezcal) 17.7 22.9 179.8

Liqueurs 11.5 12.7 81.8

- Cream-based liqueurs 13.5 13.9 92.1

- Bitters - - -

- Other liqueurs 11.2 12.6 80.6

Other spirits 11.8 10.3 63.1

- Chinese herbal spirits 22.6 30.9 283.6

- Economy Local Spirits 6.8 3.0 15.7

- Lower mid-range local spirits 8.0 5.4 30.3

- Premium local spirits 15.6 15.6 106.6

- Upper mid-range local spirits 9.7 8.8 52.3

Spirits 12.8 12.5 79.9

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 5 Sales of Spirits by On-trade vs Off-trade Split: Volume 2003-2008

'000 litres

2003 2004 2005 2006 2007 2008

Off-trade 3,045,68 2,997,62 2,968,46 2,928,20 3,000,79 3,094,17

2.7 5.3 5.4 1.2 0.7 4.8

On-trade 602,131.3 626,273.4 658,403.8 688,113.9 719,820.3 754,184.0

Total 3,647,81 3,623,89 3,626,86 3,616,31 3,720,61 3,848,35

4.0 8.6 9.2 5.2 1.0 8.9

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 6 Sales of Spirits by On-trade vs Off-trade Split: Value 2003-2008

RMB million

2003 2004 2005 2006 2007 2008

Off-trade 93,644.4 101,954.5 111,964.6 121,750.4 134,118.2 149,093.6

On-trade 47,225.5 56,191.4 67,543.2 78,357.3 90,592.9 104,353.0

Total 140,869.8 158,145.9 179,507.8 200,107.6 224,711.1 253,446.6

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 7 Sales of Spirits by On-trade vs Off-trade Split: % Volume Growth 2003-2008

% volume growth

2007/08 2003-08 CAGR 2003/08 TOTAL

Off-trade 3.1 0.3 1.6

On-trade 4.8 4.6 25.3

Total 3.4 1.1 5.5

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 8 Sales of Spirits by On-trade vs Off-trade Split: % Value Growth 2003-2008

% current value growth

2007/08 2003-08 CAGR 2003/08 TOTAL

Off-trade 11.2 9.7 59.2

On-trade 15.2 17.2 121.0

Total 12.8 12.5 79.9

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 9 Sales of Other Blended Scotch Whisky by Premium/Super-premium Split 2003-2008

% total volume

2003 2004 2005 2006 2007 2008

Super premium - - - 3.5 4.0 4.2

Premium - - - 12.0 13.0 13.0

Standard - - - 71.5 68.5 68.5

Economy - - - 13.0 14.5 14.3

Total - - - 100.0 100.0 100.0

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 10 Sales of Gin by Premium/Super-premium Split 2003-2008

% total volume

2003 2004 2005 2006 2007 2008

Super premium - - - 12.5 13.0 13.2

Premium - - - 5.0 2.8 2.8

Standard - - - 78.5 83.0 82.8

Economy - - - 4.0 1.2 1.2

Total - - - 100.0 100.0 100.0

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 11 Sales of Vodka by Premium/Super-premium Split 2003-2008

% total volume

2003 2004 2005 2006 2007 2008

Super premium - - - 3.0 2.8 2.9

Premium - - - 3.0 2.9 3.0

Standard - - - 84.0 83.8 84.0

Economy - - - 10.0 10.5 10.1

Total - - - 100.0 100.0 100.0

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 12 Sales of Flavoured vs Non-flavoured Vodka 2003-2008

% total volume

2003 2004 2005 2006 2007 2008

Flavoured vodka 15.0 30.0 35.0 35.0 38.0 38.2

Non-flavoured vodka 85.0 70.0 65.0 65.0 62.0 61.8

Total 100.0 100.0 100.0 100.0 100.0 100.0

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 13 Spirits Production, Imports and Exports: Total Volume 2002-2007

'000 litres

2002 2003 2004 2005 2006 2007

Spirits - Imports 11,748.5 18,600.4 27,246.2 38,376.1 45,765.6 55,412.1

Spirits - Exports 30,049.4 41,114.5 42,359.4 37,661.5 38,064.3 43,876.4

Source: GTIS

Note: ‘-' indicates data not available

Table 14 Spirits Exports by Country of Destination: Total Volume 2002-2007

'000 litres

2002 2003 2004 2005 2006 2007

Spirits - Total 30,049.4 41,114.5 42,359.4 37,661.5 38,064.3 43,876.4

Spirits - Japan 4,262.3 12,455.2 11,437.2 10,394.8 11,779.0 14,776.3

Spirits - Hong Kong 10,335.5 10,151.4 9,406.2 8,767.0 8,553.2 9,463.8

Spirits - Philippines 4,630.1 8,042.6 9,600.9 7,246.3 6,653.9 7,223.1

Spirits - Korea South 2,298.6 2,808.7 2,874.1 3,075.3 3,358.2 3,287.8

Spirits - Korea North 708.3 45.2 440.0 507.4 192.7 2,261.4

Spirits - Macau 1,766.1 1,449.9 1,410.6 1,628.4 1,159.0 1,225.9

Spirits - United States 783.7 831.4 893.9 632.7 1,277.6 853.6

Spirits - Malaysia 410.7 575.2 592.3 439.2 618.3 719.9

Spirits - Singapore 427.4 290.6 363.5 244.8 507.7 551.6

Source: GTIS

Note: ‘-' indicates data not available

Table 15 Spirits Exports by Country of Destination: Total Value 2002-2007

RMB million

2002 2003 2004 2005 2006 2007

Spirits - Total 794.6 801.2 997.3 960.0 1,048.7 1,310.0

Spirits - Hong Kong 342.8 349.5 413.3 439.5 449.3 669.0

Spirits - Japan 66.4 120.3 127.9 141.2 166.4 188.5

Spirits - Philippines 57.1 79.1 93.2 61.7 59.9 55.6

Spirits - Korea South 30.2 30.6 34.9 42.9 40.7 41.9

Spirits - Singapore 15.4 13.8 15.6 4.7 34.0 36.6

Spirits - United States 16.3 20.0 23.6 20.2 38.1 31.3

Spirits - Macau 20.8 26.9 30.4 28.5 24.4 30.9

Spirits - Australia 9.3 8.4 18.6 25.7 27.2 30.2

Spirits - New Zealand 4.3 3.7 10.1 6.1 3.7 25.5

Source: GTIS

Note: ‘-' indicates data not available

Table 16 Spirits Imports by Country of Origin: Total Volume 2002-2007

'000 litres

2002 2003 2004 2005 2006 2007

Spirits - Total 11,748.5 18,600.4 27,246.2 38,376.1 45,765.6 55,412.1

Spirits - United Kingdom 1,667.8 2,870.7 6,636.2 14,439.4 15,412.7 19,549.3

Spirits - France 3,023.5 4,319.0 5,673.6 8,424.4 12,616.5 15,566.6

Spirits - Spain 4,298.4 8,083.1 9,660.0 7,178.0 6,487.6 7,260.0

Spirits - Korea South 1,119.4 1,074.2 1,456.4 2,060.7 2,947.1 3,990.3

Spirits - Japan 290.0 272.9 492.0 591.3 963.0 2,591.3

Spirits - United States 381.9 446.5 921.1 1,899.3 1,974.5 1,500.6

Spirits - Australia 199.5 429.9 514.1 722.9 810.7 784.2

Spirits - Sweden 124.7 181.4 630.1 880.7 1,349.1 522.5

Spirits - Italy 59.5 35.5 53.4 57.6 580.7 445.7

Source: GTIS

Note: ‘-' indicates data not available

Table 17 Spirits Imports by Country of Origin: Total Value 2002-2007

RMB million

2002 2003 2004 2005 2006 2007

Spirits - Total 519.5 764.5 1,316.3 2,267.4 3,027.8 3,994.2

Spirits - France 359.8 504.3 780.2 1,264.9 1,926.9 2,731.4

Spirits - United Kingdom 79.7 142.3 348.7 738.6 776.2 944.1

Spirits - United States 12.7 18.2 38.3 77.4 77.2 51.3

Spirits - Korea South 10.3 10.5 12.1 23.9 34.3 48.2

Spirits - Spain 29.3 54.8 65.7 48.8 43.0 46.6

Spirits - Japan 5.2 4.7 15.4 21.1 25.6 37.2

Spirits - Taiwan 5.0 1.3 3.5 5.5 11.9 22.0

Spirits - Italy 1.4 1.1 1.7 1.7 21.8 16.5

Spirits - Sweden 3.4 5.0 17.4 24.4 37.2 14.0

Source: GTIS

Note: ‘-' indicates data not available

Table 18 Whisk(e)y Production, Imports and Exports: Total Volume 2002-2007

'000 litres

2002 2003 2004 2005 2006 2007

Whisk(e)y - Imports 2,067.9 3,261.0 7,038.8 15,382.6 16,912.5 20,355.0

Whisk(e)y - Exports 198.0 334.1 270.0 248.5 154.4 356.9

Source: GTIS

Note: ‘-' indicates data not available

Table 19 Brandy & Cognac Production, Imports and Exports: Total Volume 2002-2007

'000 litres

2002 2003 2004 2005 2006 2007

Brandy and Cognac - 2,832.2 4,056.5 5,368.4 7,692.1 10,959.6 15,316.0

Imports

Brandy and Cognac - 324.4 74.0 199.4 200.1 234.5 1,603.1

Exports

Source: GTIS

Note: ‘-' indicates data not available

Table 20 Vodka Production, Imports and Exports: Total Volume 2002-2007

'000 litres

2002 2003 2004 2005 2006 2007

Vodka - Imports 324.9 387.1 1,126.9 2,546.9 3,310.4 2,306.1

Vodka - Exports 7.2 5.9 50.4 99.8 465.4 108.0

Source: GTIS

Note: ‘-' indicates data not available

Table 21 Gin Production, Imports and Exports: Total Volume 2002-2007

'000 litres

2002 2003 2004 2005 2006 2007

Gin - Imports 143.7 240.0 458.9 603.4 468.5 456.4

Gin - Exports - - 0.2 0.0 6.4 0.3

Source: GTIS

Note: ‘-' indicates data not available

Table 22 Rum Production, Imports and Exports: Total Volume 2002-2007

'000 litres

2002 2003 2004 2005 2006 2007

Rum - Imports 29.1 186.0 6,885.2 7,440.4 6,891.2 7,765.2

Rum - Exports 343.2 334.8 7,142.4 7,389.5 6,656.5 7,212.4

Source: GTIS

Note: ‘-' indicates data not available

Table 23 Liqueurs Production: Total Volume 2002-2007

'000 litres

2002 2003 2004 2005 2006 2007

Liqueurs - Exports 1.5 10.1 40.8 - 4,297.7 7,501.2

Liqueurs - Imports 339.9 575.5 825.4 1,471.5 1,883.9 1,865.5

Source: GTIS

Note: ‘-' indicates data not available

Table 24 Other Spirits Production: Total Volume 2002-2007

'000 litres

2002 2003 2004 2005 2006 2007

Other spirits - 3,780,00 3,313,50 3,117,00 3,490,00 3,970,00 4,939,50

Production 0.0 0.0 0.0 0.0 0.0 0.0

Source: GTIS

Note: ‘-' indicates data not available

Table 25 Company Shares of Spirits by National Brand Owner 2003-2007

% total volume

Company 2003 2004 2005 2006 2007

Sichuan Yibin Wuliangye 2.4 2.4 2.4 3.2 1.8

Distillery Co Ltd

Sichuan Jian Nan Chun 1.6 1.7 1.8 1.8 1.8

(Group) Co Ltd

Luzhou Lao Jiao Co Ltd 1.4 1.4 1.5 1.2 1.5

Sichuan Tuopai Yeast 1.1 1.3 1.2 1.3 1.3

Liquor Co Ltd

Beijing Red Star Co Ltd 1.3 1.2 1.1 1.1 1.1

Lang Jiu Group 0.7 0.8 0.9 1.0 1.0

Yantai Changyu Group Co 0.6 0.6 0.8 0.9 0.9

Ltd

Jinliufu Distillery 1.4 1.4 1.4 1.8 0.8

Sales Co Ltd

Guangdong Jiujiang 0.7 0.7 0.6 0.7 0.7

Distillery Co Ltd

Kweichow Moutai Co Ltd 0.3 0.4 0.4 0.5 0.5

Jing Brand Co Ltd 0.2 0.2 0.3 0.4 0.5

Shandong JingZhi 0.4 0.5 0.4 0.4 0.4

Distillery

Sichuan Quanxing Co Ltd 0.4 0.4 0.4 0.4 0.4

Kweichow Moutai Yunfeng 0.3 0.3 0.3 0.4 0.4

Distillery

Anhui Gujing Distillery 0.2 0.2 0.3 0.3 0.3

Co Ltd

Pernod Ricard Groupe 0.1 0.1 0.2 0.3 0.3

Hainan Yedao Co Ltd 0.1 0.1 0.2 0.2 0.2

Diageo Plc 0.0 0.1 0.1 0.2 0.2

Shandong Kong Fu Jia 0.2 0.2 0.2 0.2 0.2

Distillery Co Ltd

Jiangsu Yanghe Distillery 0.2 0.2 0.2 0.2 0.2

Zhejiang Zhizhonghe 0.1 0.1 0.1 0.1 0.2

Wine Co Ltd

LVMH Moët Hennessy 0.0 0.1 0.1 0.1 0.1

Louis Vuitton

Sichuan Mianyang 0.1 0.1 0.1 0.1 0.1

Distillery

Hunan Jiugui Liquor Co 0.1 0.1 0.0 0.0 0.0

Ltd

Others 86.2 85.5 84.9 83.1 85.1

Total 100.0 100.0 100.0 100.0 100.0

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 26 Company Shares of Spirits by Global Brand Owner 2003-2007

% total volume

Company 2003 2004 2005 2006 2007

Sichuan Jian Nan Chun 1.7 1.8 1.9 1.9 1.9

(Group) Co Ltd

Sichuan Yibin Wuliangye 2.4 2.4 2.4 3.2 1.8

Distillery Co Ltd

Luzhou Lao Jiao Co Ltd 1.4 1.4 1.5 1.2 1.5

Sichuan Tuopai Yeast 1.1 1.3 1.2 1.3 1.3

Liquor Co Ltd

Beijing Red Star Co Ltd 1.3 1.2 1.1 1.1 1.1

Lang Jiu Group 0.7 0.8 0.9 1.0 1.0

Yantai Changyu Group Co 0.6 0.6 0.8 0.9 0.9

Ltd

Vats Group - - - 1.8 0.8

Guangdong Jiujiang 0.7 0.7 0.6 0.7 0.7

Distillery Co Ltd

Kweichow Moutai Co Ltd 0.3 0.4 0.4 0.5 0.5

Jing Brand Co Ltd 0.2 0.2 0.3 0.4 0.5

Shandong JingZhi 0.4 0.5 0.4 0.4 0.4

Distillery

Sichuan Quanxing Co Ltd 0.4 0.4 0.4 0.4 0.4

Guangzhou Pearl River 0.3 0.3 0.3 0.4 0.4

Yunfeng Winery Co Ltd

Anhui Gujing Distillery 0.2 0.2 0.3 0.3 0.3

Co Ltd

Pernod Ricard Groupe 0.1 0.1 0.2 0.3 0.3

Hainan Yedao Co Ltd 0.1 0.1 0.2 0.2 0.2

Diageo Plc 0.0 0.1 0.1 0.2 0.2

Shandong Kong Fu Jia 0.2 0.2 0.2 0.2 0.2

Distillery Co Ltd

Jiangsu Yanghe Distillery 0.2 0.2 0.2 0.2 0.2

Zhejiang Zhizhonghe 0.1 0.1 0.1 0.1 0.2

Wine Co Ltd

LVMH Moët Hennessy 0.0 0.1 0.1 0.1 0.1

Louis Vuitton

Hunan Jiugui Liquor Co 0.1 0.1 0.0 0.0 0.0

Ltd

Jinliufu Distillery 1.4 1.4 1.4 - -

Sales Co Ltd

Others 86.2 85.5 84.9 83.1 85.1

Total 100.0 100.0 100.0 100.0 100.0

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 27 Brand Shares of Spirits 2004-2007

% total volume

Brand (Global Brand Company 2004 2005 2006 2007

Owner)

Luzhou Lao Jiao Da Qu Luzhou Lao Jiao Co Ltd 1.3 1.4 1.1 1.3

Tuo Pai Sichuan Tuopai Yeast 1.3 1.2 1.3 1.3

Liquor Co Ltd

Red Star Er Guo Tou Beijing Red Star Co Ltd 1.2 1.1 1.1 1.1

Lang Jiu Lang Jiu Group 0.8 0.9 1.0 1.0

Jian Nan Chun Sichuan Jian Nan Chun 0.9 1.0 1.0 1.0

(Group) Co Ltd

Changyu Yantai Changyu Group Co 0.6 0.8 0.9 0.9

Ltd

Wu Liang Chun Sichuan Yibin Wuliangye 1.1 1.2 1.6 0.8

Distillery Co Ltd

Jinliufu (Vats Group) Jinliufu Distillery - - 1.8 0.8

Sales Co Ltd

Jiujiang Shuang Zheng Guangdong Jiujiang 0.7 0.6 0.7 0.7

Distillery Co Ltd

Mian Zhu Da Qu Sichuan Jian Nan Chun 0.5 0.5 0.5 0.5

(Group) Co Ltd

Jing Jiu Jing Brand Co Ltd 0.2 0.3 0.4 0.5

Kweichow Moutai Kweichow Moutai Co Ltd 0.3 0.4 0.4 0.4

Jingzhi Baigan Shandong JingZhi 0.5 0.4 0.4 0.4

Distillery

Wu Liang Ye Sichuan Yibin Wuliangye 0.2 0.2 0.3 0.4

Distillery Co Ltd

QuanXing Sichuan Quanxing Co Ltd 0.4 0.3 0.3 0.3

Mian Zhu Jiu Sichuan Jian Nan Chun 0.3 0.3 0.3 0.3

(Group) Co Ltd

Yedao Lugui Jiu Hainan Yedao Co Ltd 0.1 0.2 0.2 0.2

Gu Jing Gong Anhui Gujing Distillery 0.1 0.2 0.2 0.2

Co Ltd

Chivas Regal 12 YO Pernod Ricard Groupe 0.1 0.2 0.2 0.2

Kong Fu Jia Jiu Shandong Kong Fu Jia 0.2 0.2 0.2 0.2

Distillery Co Ltd

Jinliufu Jinliufu Distillery 1.4 1.4 - -

Sales Co Ltd

Others 87.8 87.3 86.0 87.5

Total 100.0 100.0 100.0 100.0

Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews, Euromonitor International estimates

Table 28 Forecast Sales of Spirits by Subsector: Total Volume 2008-2013

'000 litres

2008 2009 2010 2011 2012 2013

Whisk(e)y 23,042.7 26,264.5 30,277.1 35,240.2 41,523.3 49,309.0

- Single malt Scotch 321.5 383.6 450.2 521.9 593.9 661.2

whisky

- Blended Scotch whisky 20,253.6 23,058.7 26,662.0 31,229.6 37,123.3 44,552.7

- Bourbon/other US 1,971.6 2,315.5 2,648.5 2,962.9 3,271.8 3,553.6

whiskey

- Canadian whisky 496.1 506.6 516.4 525.7 534.2 541.5

- Irish whiskey - - - - - -

- Japanese whisky - - - - - -

- Other whisk(e)y - - - - - -

Brandy and Cognac 49,656.1 52,405.3 55,202.1 57,909.7 60,458.2 62,698.4

- Brandy 35,502.8 36,462.7 37,403.0 38,302.7 39,169.2 39,881.3

- Cognac 14,153.3 15,942.6 17,799.1 19,607.0 21,289.0 22,817.2

White spirits 2,504.9 2,586.9 2,811.4 3,152.3 3,576.8 4,103.6

- Gin 466.5 514.8 563.0 609.1 649.6 686.2

- Vodka 2,038.5 2,072.0 2,248.4 2,543.2 2,927.1 3,417.4

Rum 635.5 753.1 851.3 944.2 1,035.2 1,118.2

- White rum 508.1 606.9 693.8 777.3 860.0 936.2

- Dark rum 127.4 146.2 157.5 167.0 175.2 182.0

Tequila (and Mezcal) 165.9 187.3 211.7 239.6 272.3 303.0

Liqueurs 864.4 911.3 953.4 990.4 1,019.9 1,045.0

- Cream-based liqueurs 106.7 112.5 117.7 122.4 126.3 129.8

- Bitters - - - - - -

- Other liqueurs 757.7 798.8 835.7 868.0 893.6 915.1

Other spirits 3,771,48 3,912,84 4,078,37 4,268,22 4,487,51 4,683,98

9.3 0.7 3.2 7.9 7.7 1.0

- Chinese herbal spirits 92,366.1 103,638.1 113,848.0 123,805.0 132,351.4 140,166.8

- Economy Local Spirits 1,612,90 1,649,63 1,696,99 1,752,34 1,818,36 1,872,88

9.7 1.7 6.3 0.3 9.6 0.2

- Lower mid-range local 1,186,69 1,227,09 1,273,31 1,327,14 1,389,11 1,446,93

spirits 6.4 5.3 2.7 1.4 0.6 2.5

- Premium local spirits 223,890.5 244,341.7 268,723.9 297,768.1 331,986.1 363,960.3

- Upper mid-range local 655,626.6 688,134.0 725,492.3 767,173.0 815,700.1 860,041.2

spirits

Spirits 3,848,35 3,995,94 4,168,68 4,366,70 4,595,40 4,802,55

8.9 9.0 0.1 4.4 3.4 8.2

Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International estimates

Table 29 Forecast Sales of Spirits by Subsector: Total Value 2008-2013

RMB million

2008 2009 2010 2011 2012 2013

Whisk(e)y 15,591.0 17,997.8 20,924.6 24,603.9 29,212.1 35,245.3

- Single malt Scotch 201.7 250.7 300.7 352.2 407.0 456.7

whisky

- Blended Scotch whisky 13,942.1 16,062.7 18,693.9 22,076.4 26,393.5 32,152.9

- Bourbon/other US 1,201.4 1,427.9 1,663.3 1,898.7 2,125.5 2,340.6

whiskey

- Canadian whisky 245.8 256.5 266.6 276.6 286.1 295.1

- Irish whiskey - - - - - -

- Japanese whisky - - - - - -

- Other whisk(e)y - - - - - -

Brandy and Cognac 21,542.0 24,654.9 28,112.9 31,567.6 35,124.2 38,554.5

- Brandy 1,447.1 1,483.8 1,521.3 1,560.0 1,594.8 1,627.8

- Cognac 20,094.9 23,171.1 26,591.6 30,007.6 33,529.4 36,926.7

White spirits 1,005.1 1,052.2 1,158.1 1,320.2 1,519.6 1,778.6

- Gin 163.9 183.2 202.8 221.5 239.1 254.1

- Vodka 841.2 869.0 955.3 1,098.8 1,280.5 1,524.4

Rum 249.6 301.6 346.8 389.3 433.7 477.6

- White rum 203.1 247.2 287.6 326.3 367.0 407.6

- Dark rum 46.5 54.3 59.2 63.1 66.7 70.0

Tequila (and Mezcal) 76.3 86.7 98.5 112.1 128.1 144.0

Liqueurs 535.7 570.9 603.0 632.3 658.0 681.5

- Cream-based liqueurs 59.8 64.2 68.3 72.1 75.1 77.8

- Bitters - - - - - -

- Other liqueurs 475.9 506.7 534.7 560.2 582.9 603.7

Other spirits 214,446.9 233,632.7 256,189.8 282,136.7 311,906.0 338,772.1

- Chinese herbal spirits 17,242.1 19,802.9 22,327.0 24,869.1 27,255.2 29,254.2

- Economy Local Spirits 13,866.0 14,249.7 14,697.7 15,231.3 15,860.2 16,416.0

- Lower mid-range local 52,516.3 54,946.1 57,776.3 61,025.9 64,719.6 68,210.9

spirits

- Premium local spirits 64,775.1 72,993.0 82,917.9 94,868.2 109,177.1 122,978.0

- Upper mid-range local 66,047.4 71,641.1 78,470.8 86,142.3 94,893.9 101,913.1

spirits

Spirits 253,446.6 278,296.8 307,433.6 340,762.2 378,981.7 415,653.7

Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International estimates

Table 30 Forecast Sales of Spirits by Subsector: % Total Volume Growth 2008-2013

% total volume growth

2008-13 CAGR 2008/13 TOTAL

Whisk(e)y 16.4 114.0

- Single malt Scotch whisky 15.5 105.7

- Blended Scotch whisky 17.1 120.0

- Bourbon/other US whiskey 12.5 80.2

- Canadian whisky 1.8 9.1

- Irish whiskey - -

- Japanese whisky - -

- Other whisk(e)y - -

Brandy and Cognac 4.8 26.3

- Brandy 2.4 12.3

- Cognac 10.0 61.2

White spirits 10.4 63.8

- Gin 8.0 47.1

- Vodka 10.9 67.6

Rum 12.0 76.0

- White rum 13.0 84.3

- Dark rum 7.4 42.9

Tequila (and Mezcal) 12.8 82.6

Liqueurs 3.9 20.9

- Cream-based liqueurs 4.0 21.7

- Bitters - -

- Other liqueurs 3.8 20.8

Other spirits 4.4 24.2

- Chinese herbal spirits 8.7 51.8

- Economy Local Spirits 3.0 16.1

- Lower mid-range local spirits 4.0 21.9

- Premium local spirits 10.2 62.6

- Upper mid-range local spirits 5.6 31.2

Spirits 4.5 24.8

Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International estimates

Table 31 Forecast Sales of Spirits by Subsector: % Total Value Growth 2008-2013

% local currency, constant value growth

2008-13 CAGR 2008/13 TOTAL

Whisk(e)y 17.7 126.1

- Single malt Scotch whisky 17.8 126.4

- Blended Scotch whisky 18.2 130.6

- Bourbon/other US whiskey 14.3 94.8

- Canadian whisky 3.7 20.0

- Irish whiskey - -

- Japanese whisky - -

- Other whisk(e)y - -

Brandy and Cognac 12.3 79.0

- Brandy 2.4 12.5

- Cognac 12.9 83.8

White spirits 12.1 77.0

- Gin 9.2 55.0

- Vodka 12.6 81.2

Rum 13.9 91.4

- White rum 15.0 100.7

- Dark rum 8.5 50.5

Tequila (and Mezcal) 13.5 88.7

Liqueurs 4.9 27.2

- Cream-based liqueurs 5.4 30.1

- Bitters - -

- Other liqueurs 4.9 26.9

Other spirits 9.6 58.0

- Chinese herbal spirits 11.2 69.7

- Economy Local Spirits 3.4 18.4

- Lower mid-range local spirits 5.4 29.9

- Premium local spirits 13.7 89.9

- Upper mid-range local spirits 9.1 54.3

Spirits 10.4 64.0

Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International estimates

ã Euromonitor International

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