The distilled spirits industry has begun to show signs of recovery from the recession, but according to Peter Cressy, Distilled Spirits Council CEO, policy makers should refrain from increasing tax burdens because the economy is not out of the woods yet.
According to 2010 economic data released by the Council, supplier volumes rose two percent to 190 million cases and revenue rose 2.3 percent to $19.1 billion. Cressy pointed out that these growth rates do remain below the pre-recession growth rates, and that the restaurant and bar sector is still experiencing a recovery.
Cressy also noted that in 2010 consumers began to return to their high-end and super premium spirits products. In addition, the revenue-based market share for spirits overall versus beer and wine gained four-tenths of a point rising to 33.3 percent of the beverage alcohol market.
“In 2010, the industry improved its performance over the previous year, but this recovery remains fragile, and we are not yet out of the woods,” said Cressy. “Consumers did begin to trade back up to premium spirits products, but the hospitality industry is still far from its average pre-recession performance.”
The spirits industry also remains fully committed to social responsibility, highlighting the latest government data showing that underage drinking by 8th, 10th, and 12th graders as well as the total number of drunk driving fatalities in the United States are at historic low levels.
“Working together as a society, we continue to make important progress on underage drinking and drunk driving,” said Cressy. “There is more work to do to further reduce these numbers, and our companies are fully committed to this important effort.”
