Travel retail liquor sales fell by 9.3% in 2009
By Doug Newhouse, 15 July 2010

Last year's downturn saw global travel retail wines and spirits sales fall by 9.3% to 22.7m nine-litre cases, with spirits sales declining by -10.6% to account for 69% of total travel retail volumes, according to the latest IWSR 2010 Duty Free/Travel Retail Report.

Interestingly, within the spirits category, rum sales grew by +1.3% to 1.25m cases last year, overtaking Cognac for the first time to become the fourth-biggest spirits category by volume. IWSR says that the growth of the dark rum sector, led by brands such as Cruzan, Zacapa and Brugal, has driven the expansion of the rum category.

Meanwhile, sales in the third-largest spirits category - vodka -– fell by -11.7%, but Grey Goose and Bélvèdere helped drive an increase of +8.3% in super-premium vodka volumes. Scotch whisky - the biggest spirits category - registered a -10.5% fall in sales to 4.9m cases, while the wine category contracted by -6.3%, with still light wine sales (down by -5%) showing more resilience than other wine sub-categories.

DIAGEO LEADS THE MARKET
Diageo's Johnnie Walker family of brands still heads the global ranking of travel retail brands, although sales fell by -7.7% last year, although the market leader's share of global sales remained stable at 18.1% - the same share as in 2008.

But a big drop in sales for second-placed Pernod Ricard's leading brand, Absolut, means the French group's market share has fallen to 15.6%, down from 17.6% in 2008. LVMH's Hennessy, which grew by 5.1%, was the only one of the top 20 brands to increase sales last year.

Not surprisingly, The Americas region was most severely affected, with duty free volumes dropping by -19%. North and Central America suffered the sharpest falls in tourist numbers in 2010, along with Europe and the Middle East. Sales in the Asia-Pacific region fell by just -5.3% in 2009, the lowest regional fall last year, as travel began to return to growth more quickly than elsewhere.

2010 SHOULD BE BETTER
IWSR Travel Retail Research Manager Sandra Newman said: "Our data shows that some markets such as Australia performed strongly last year, despite the difficult conditions the global market faced and suppliers and retailers have confirmed that recovery is already well under way in Asia Pacific.

"Sales may still take some time to recover in Europe and North America, but as tourism is now increasing again in many countries around the world, the signs are that 2010 will be a much better year for the global travel retail wines and spirits sector."

For more information on the report, contact: Sandra Newman at: sandra@iwsr.co.uk or +44 (0) 207 689 6841

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