The Cordials & Liqueurs category continued to slide in 2008, thanks in part to the clear shift from on-premise consumption and the category’s utilization as a mixer in a multitude of cocktails in those locations. The category contains more flavors and brands than any other and is third in volume behind vodka and rum. As a category, Cordials & Liqueurs decreased both in volume and share as total volume declined –2.3% and its share of the distilled spirits market shrunk to 11.2%.
Domestic products collectively declined 3.8% in volume. Imported Liqueurs posted declines not as severe with volume losing 1.0 The Domestic segment, led by DeKuyper with its slew of flavors, declined 4.9%. Second place Southern Comfort continued its slide as it declined another 3.4% in 2008. Results were also negative for Hiram Walker, losing a slight 0.1%.
Among the Imports, Jagermeister continued its growth although at a much slower pace than we’ve seen in recent history. This on-premise focused brand enjoyed a 21.7% average growth rate between 2003 and 2007 that dropped to a slight 1.8% for 2008. The top Cream Liqueur tracked posted a gain in case sales with leading Baileys adding another 4.3% thanks in part to the introduction of Baileys Coffee. However, other coffee-flavored leading brands were down with Kahlua (-9.3%), Kamora (-3.0%) and Starbuck’s (-36.5%)—with its sharp decline–in the domestic segment last year. The super-premium drinks showed the effects of the recessionary environment with Grand Marnier (-7.8%) and Cointreau (-5.2%) both having below-par years.