Rabobank Releases Report on the Growing U.S. Craft Spirits Market

St. Louis, Mo. (January 8, 2016) – The trend amoung U.S. consumers to abandon large, well-established brands in favor of smaller niche brands is having a profound effect on the spirits market. Rabobank explores this trend in a new report, and finds both large and small companies have a big opportunity to capitalize on this emerging trend.

The report, “The U.S. Spirits Market and the Battle for ‘Craft’: Responding to the Opportunity – Overcoming the Challenges,” finds consumer interest in exploring new niche brands – particularly local brands – creates attractive opportunity for entrepreneurs entering the spirits category. However, while the opportunities are clear, there are also significant challenges and it is becoming increasingly apparent that the growth of craft spirits will be a more complex process than what we have seen in the beer category. Distilling is more complex and capital intensive than brewing, excise taxes are more onerous and established spirits companies have been more responsive to the evolving consumer trends. Looking forward, we believe that spirits companies, large and small, will have opportunities to capitalize on emerging consumer trends, but each will face a different set of challenges. Achieving success will depend not on size, but on the ability to engage consumers and overcome their specific challenges.

“Sales of what we call micro-spirit companies are growing at double-digit rates but large spirits companies are also enjoying solid growth,” notes report author and Rabobank Analyst Steve Rannekleiv. “Going forward, we believe success in this market, for any size company, will be determined by its ability to engage consumers and manage the challenges the market presents.”

A full copy of “The U.S. Spirits Market and the Battle for ‘Craft’: Responding to the Opportunity – Overcoming the Challenges,” is available by contacting Sarah Kolell at Rabo AgriFinance.

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Sarah Kolell
Public Relations Director
Ph: 816-516-7984
Sarah.Kolell@RaboAg.com

Jessup Wiley
Rabobank, N.A.
(559) 447-7946
Jessup.Wiley@rabobank.com

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As a leading financial services provider for agricultural producers and agribusinesses in the United States, Rabo AgriFinance adds value using industry expertise, client-focused solutions, and by creating long-term business relationships. Rabo AgriFinance offers a comprehensive portfolio of services that gives producers the right products to prepare for, and take advantage of, market opportunities. Rabo AgriFinance representatives offer a wide array of financial services and knowledge to help customers realize their ambitions.  This comprehensive suite of services includes loans, insurance, input finance and effective risk management products. Rabo AgriFinance is a subsidiary of Rabobank, the premier bank to the global agriculture industry and one of the world’s largest and safest banks.