As we conclude the fourth quarter of 2024, we are pleased to share the latest developments at Sasma, including market insights, industry trends, and updates on our product offerings. Your continued partnership is invaluable to us, and we are committed to providing you with timely and relevant information to support your business endeavours.
Spirits Market Overview
The global spirits industry has faced a dynamic landscape in Q4 2024, influenced by economic fluctuations, evolving consumer preferences, and supply chain challenges. Despite these hurdles, the market has demonstrated resilience, with certain segments showing promising growth.
Economic Climate & Consumer Behaviour
United States
In the United States, consumers have reduced spending on spirits such as vodka, whisky, and tequila due to the high cost of living. Data from IWSR indicates a 3% decrease in spirits volume sold in the first seven months of 2024 compared to the same period in 2023, with significant drops in vodka and Scotch whisky sales. This trend is attributed to factors like the impact of new weight-loss drugs, low alcohol consumption among Gen Z, and marijuana legalization (Financial Times).
Europe
In Europe, major spirits companies have reported challenging financial results. Diageo, the owner of brands like Guinness and Smirnoff, reported a 1.4% decline in annual net sales to $20.3 billion and a 0.6% drop in organic net sales. Volumes fell by 3.5%, even as higher prices were implemented. CEO Debra Crew highlighted ongoing difficulties but assured that the company is well-positioned for future growth (The Times).
Similarly, Remy Cointreau adjusted its sales forecast for fiscal 2025, predicting a double-digit percentage decline due to ongoing uncertainty in the U.S. and deteriorating market conditions in China. The company has launched a cost-cutting plan to mitigate the impact on profitability, amounting to over 50 million euros (The Wall Street Journal).
Emerging Trends
Despite these challenges, certain segments within the spirits industry are experiencing growth. The "ready to drink" (RTD) category has shown resilience, with a 2% volume growth overall and an 11% increase for spirit-based RTDs (Financial Times).
Additionally, there is a growing emphasis on sustainable and ethical sourcing, with consumers increasingly favoring brands that prioritize environmental responsibility. This trend is prompting producers to adopt more sustainable practices and transparent supply chains (Yahoo Finance).
Product Highlights
Bourbon Availability
We are pleased to announce an increase in bourbon availability, spanning from fresh fill to six years old. This favorable position allows us to offer bourbon at reduced prices compared to previous years. Additionally, ex-bourbon barrels present an opportunity for investment and collaboration, as demand for these barrels surges in industries such as rum and whisky production.
Rum Assortment
Our rum selection has expanded to include aged varieties between 1 to 3 years, matured in oak barrels. We offer both organic and conventional options, with packaging ranging from 1,000-liter IBC tanks to 25,000-liter ISO tanks. Our rum certifications include Bon Sucro and Non-GMO. Please contact our sales team to learn more.
Agave Spirits
We continue to offer premium 100% Agave spirit and 100% Agave distillate smoked (also known as Mezcal). Sourced from Jalisco, Mexico, our products are crafted from a variety of agave, ensuring the highest quality. Packaging options include shipping IBCs from our warehouse or ISO tanks direct from the distillery. For more information about our agave spirits, feel free to reach out to us.
