Spirits shipping volume will support transport sector in 2014

Spirits shipping volume will support transport sector in 2014


Spirits will buoy shipping in 2014

The global beverage trade will be a key contributor to shipping demand growth over the next five years, according to a new report.
The latest study by International Wine & Spirit Research concluded the global spirit trade would be spurred on by a shift from locally produced drinks to foreign brands in some of the most populous global markets.
Imported spirits are forecast to grow at a compound annual growth rate of 3 percent worldwide until 2018. By contrast, local brand consumption is expected to see growth rates slow to 1.3 percent as demand for traditional spirits in markets such as Russia and Germany declines.
The growth in import demand over the period translates into an extra 67 million cases of spirits to be transported each year by 2018.
Most spirits are shipped as full container loads or as less-than-container-load cargo, with European exports usually moving via hubs in Latvia, the Netherlands and Germany for re-export to final destination, according to a spokesperson for IWSR.
“Whiskey, vodka and rum are set to be the top three largest growth imported spirits categories over the next five years,” she told the JOC.
Imported whiskey volumes are forecast to grow at 3 percent CAGR over the next six years, with an additional 24.9 million nine-liter cases being consumed in export markets by 2018 versus 2012, with most of the increase expected to be shipped from Scotland.
“The leading growth markets for Scotch over the next five years will be Russia, India and Brazil,” she said.”
Vodka is expected to be the second largest growing imported spirit category. Trade is forecast to increase by 15.2 million cases between 2012 and 2018, with the U.S. and Russia the fastest growing importers.
“In the U.S., flavored vodkas will drive future growth,” she said. “2012 saw this segment grow by an impressive 18 percent, which was in line with long-term growth rates.
“The flavored vodka category relies on innovation, new flavors and brand line extensions, and as long as the flow of new launches does not cease, strong future growth is almost certain.”

Mike Campbell for the Journal of Commerce

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