In High Spirits
strategy+business|Fall 2017

How to capitalize on the boom in craft liquors.

Akshat Dubey and Rakesh Mani
In High Spirits

In June 2017, alcohol giant Diageo announced it would pay up to US$1 billion to acquire Casamigos, a tequila company founded several years ago by, among others, actor George Clooney. The next month, the French spirits company Moët Hennessy acquired Woodinville Whiskey Company, a seven-year-old distillery brand based near Seattle.

The deals highlight the potential of a rapidly emerging niche in the consumer products world. Over the past two decades, upstart brands focused on innovative flavors, high-quality ingredients, and the cachet of authenticity have been disrupting some of the biggest segments of the U.S. food and beverage industry. In response to changing consumer tastes, particularly those of millennials, and with the use of modern digital and social media tools, “artisanal” and “craft” startups have garnered significant market share in categories as varied as snacking, chocolate, coffee, and beer. Now, this revolution is rolling through one of the oldest branded consumer products segments: spirits.

In recent years, spirits have been accounting for a larger share of alcohol drunk in the United States. Since 2002, spirits’ share of the number of drinks consumed in the U.S. climbed to 34 percent in 2015, with most of the growth coming at the expense of beer (see Exhibit 1 ).

Within the spirits segment, the premium tiers have accounted for the lion’s share of growth. And it is here, in the premium segment, where craft whiskeys, vodkas, gins, and other spirits have carved out a leading role. (A 750 ml bottle of Casamigos Tequila Blanco retails for about $45.)

Denne historien er fra Fall 2017-utgaven av strategy+business.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra Fall 2017-utgaven av strategy+business.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA STRATEGY+BUSINESSSe alt
Transforming information into insight
strategy+business

Transforming information into insight

Focus on six organizational elements to build a world-class data and insights capability.

time-read
8 mins  |
Winter 2020
THE URGENT NEED FOR SOPHISTICATED LEADERSHIP
strategy+business

THE URGENT NEED FOR SOPHISTICATED LEADERSHIP

The pandemic has highlighted a series of paradoxes inherent to the work of leaders. What comes next will depend on how well leaders face up to them.

time-read
10+ mins  |
Winter 2020
The road to successful change is lined with trade-offs
strategy+business

The road to successful change is lined with trade-offs

Rather than trying to convince people your change initiative is the right one, invite them to talk openly about what it might take to implement it: the good, the bad, and the frustrating.

time-read
10+ mins  |
Winter 2020
Sustaining productivity virtually
strategy+business

Sustaining productivity virtually

Maintaining productivity levels among remote employees is an enduring challenge. Here are five ways to help businesses and employees thrive while people work at home.

time-read
7 mins  |
Winter 2020
FORWARD TO normal
strategy+business

FORWARD TO normal

Entertainment and media companies are building business models that are resilient to the enduring changes in consumer behavior ushered in by COVID-19.

time-read
10+ mins  |
Winter 2020
How leaders can promote racial justice in the workplace
strategy+business

How leaders can promote racial justice in the workplace

Embrace four principles to turn today’s diversity, equity, and inclusion initiatives into sustained progress.

time-read
9 mins  |
Winter 2020
CREATING THE OFFICE OF THE FUTURE
strategy+business

CREATING THE OFFICE OF THE FUTURE

In a remodeled world, it is vital for companies to reinvent ways of working.

time-read
10+ mins  |
Winter 2020
Consumer companies must take leaps, not steps
strategy+business

Consumer companies must take leaps, not steps

As shoppers show how quickly they can adapt to external shocks, retailers will need to radically reconfigure their business models.

time-read
7 mins  |
Winter 2020
Businesses can fast-track innovation to help during a crisis
strategy+business

Businesses can fast-track innovation to help during a crisis

“Unrealistic” timelines can actually work. Here’s how.

time-read
5 mins  |
Winter 2020
Agility and experience management work better together
strategy+business

Agility and experience management work better together

Many companies achieve early wins with separate transformational efforts, then stall. But if combined and enhanced using “return on experience,” or ROX, measures, these two programs can unlock each other’s potential.

time-read
7 mins  |
Winter 2020