American spirits flying worldwide

American distilled spirits in general and American whiskey in particular reached record levels in 2011 and enjoyed double digit growth in exports, new figures reveal.

But producers have been warned not to be complacent amid economic uncertainty and fears that new taxes could stall further growth.
Distilled spirits exports exceeded one billion dollars for the fifth consecutive year, reaching a projected record $1.34 billion in 2011. Total spirits exports grew 16.5% over the preceding year, while American whiskey — which accounts for 69% of total exports — grew 13.6%.
Distilled Spirits Council president and CEO Peter Cressy said the growth was the result of a continued growth in the number of open markets and sensible trade regulations in overseas markets. An emphasis on brand heritage in new markets also contributed to the trade growth.
Among significant trade victories in 2011 were the passage of the United States- Korea Free Trade Agreement, which will eliminate the 20% tariff on Bourbon/Tennessee whiskey when it it comes in to effect, and the World Trade Organization’s final ruling that the Philippines’ excise tax on distilled spirits is discriminatory and in violation of its rules.
“As countries around the world lower tariffs and other barriers, American spirits products are finding new audiences fascinated by the rich heritage and unique character of these great brands,” Cressy said.
Cressy attributed the market share growth to industry innovation and the continued trend by drinkers to seek our premium products. He said that other significant factors contributing to the positive outcome were the continuing drive to modernise and a willingness by policymakers to hold the line on taxes.
“It is a credit to the companies’ commitment to innovation, and successful modernisation trends, that we have experienced nearly five points of revenue market share growth over the past decade,” Cressy concluded.