The spirit distillers are crossing their fingers that the tentative recovery seen in the USA last year is set to continue.
A rise of 2% saw the liquor companies sell 190.7 million 9 litre cases in the USA during 2010, a thankful rise after the recession meant that people became far more careful with their luxury purchases.
Peter Creesy, CEO of the Distilled Spirits Council, who gave an industry briefing on January 24, said that although the growth rates are below pre-recession levels, consumers are beginning to return to the higher end and super premium spirit products. Revenue in this area rose by 10.9% in 2010.
This, of course, includes cognac and super premium brandy which rose by almost 10%.
Over the past ten years, US drinkers have gradually been swapping their beer cans in favour of cocktails, which of course promotes the sales of spirits, and this trend appears to be gaining strength each year.
Mr Creesy said that a number of factors have helped the spirit recovery, including the nations increased love of entertaining at home, the spirit companies offering high end but good value products during the recession and state legislation throughout the US which prevented a rise in hospitality tax for the whole of 2010.
The spirit producers are remaining cautiously optimistic as we head further into 2011.
Sources: www.smallcapnetwork.com, www.reuters.com