Of All Liquors, Bourbon Most Impacted by Premiumization
That's the opinion of Liz Paquette, head of consumer insights for Drizly, who notes the "unit price continues to grow year-over-year. Additionally, all the price ranges from $50 and above have gained share year-over-year over the lower price ranges.” he higher end of the price spectrum of
That's the opinion of Liz Paquette, head of consumer insights for Drizly, who notes the "unit price continues to grow year-over-year. Additionally, all the price ranges from $50 and above have gained share year-over-year over the lower price ranges.”
he higher end of the price spectrum of bourbon average unit price on Drizly has seen notable year-over-year growth. The share of bottles $100 or more rose from a 10.5% share in 2021 to a 12.2% share in 2022. Other higher price segments $50 and above rose as well, with the $90 to $100 range going from a 1.9% share to a 2.2% share; $80 to $90 range going from a 2.3% share to a 2.6% share; $70 to $80 range going from a 4% share to a 4.4% share; $60 to $70 range going from a 7% share to a 7.7% share; and the $50 to $60 range going from a 12.7% share to a 14% share.
Conversely, the share of bourbon sales on Drizly in every price bracket under $50 has decreased.
The share of bourbon sales for bottles between $20 and $30 decreased from 21% to 18% year-over-year, while the share of sales in the $50 to $60 range increased from 12% to 13%. The share of bourbon sales for bottles between $60 and $100 all increased slightly as well, while the share of sales for bourbons more than $100 increased from 6% to 9%
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Outside of whiskey, a rising percentage share of tequila sales competes with the top whiskey subcategories. Neither tequila nor the other whiskey subcategories meet bourbon’s overall share of sales, however.
Easy to Buy Now on Allocation
“A lot of brands that used to be relatively easy to buy are now on allocation,” says Rand. “This is due to both supply issues as well as consumer demand for popular brands that have a reputation for quality and value. Consumers are more educated on the bourbon category and are looking to explore across the brands they know as well as to discover new brands. Limited releases are also driving more interest fueled by social media and scarcity, more and more bourbon fans are looking to get bottles that no one else can.”
The list of top-selling bourbon brands on Drizly is relatively stable. In the past year, Maker’s Mark surpassed Bulleit as the top-selling bourbon brand on Drizly. Additionally, Angel’s Envy replaced Knob Creek in the number 10 position.
Drizly’s Top-Selling Bourbons in 2022
- Maker’s Mark
- Bulleit
- Woodford Reserve
- Jim Beam
- Basil Hayden
- Four Roses
- Blanton’s
- Evan Williams
- Buffalo Trace
- Angel’s Envy
The reliability of the top-selling brands makes it easy for retailers to stock a variety of SKUs from popular bourbon brands to maximize sales. Additionally, many of the top-selling brands have SKUs at various price points to capitalize on the sale of premium and super-premium bottles.
Drizly’s Fastest-Growing Bourbons in 2022
- Four Roses Bourbon
- Four Roses Small Batch Bourbon
- Four Roses Single Barrel Bourbon
- Michter’s US 1 Kentucky Straight Bourbon
- Maker’s French Oaked 46 Bourbon Whisky
- Four Roses Small Batch Select Bourbon
- Hudson Bright Lights, Big Bourbon Whiskey
- Weller 12 Year Bourbon
- Booker’s Bourbon Whiskey
- Bulleit Old Fashioned Cocktail
- Jefferson’s Reserve Bourbon
- Jefferson’s Very Small Batch Bourbon Whiskey
- Basil Hayden Subtle Smoke Kentucky Straight Bourbon Whiskey
- High West American Prairie Bourbon
- High West Bourbon Whiskey
Who’s Buying Bourbon?
In 2022, millennials commanded the largest share of bourbon sales (52%, compared to 50% of overall Drizly sales) followed by Gen X (36% compared to 35% of overall Drizly sales), baby boomers (13% compared to 14% of overall Drizly sales), and Gen Z (2% compared to 3% of overall Drizly sales).
In 2022, the top markets that over-indexed on bourbon share relative to overall share of sales on Drizly included Dallas, Chicago, Washington, D.C., Atlanta, Houston, and Austin.
Looking Ahead to 2023
Bourbon is a reliable sales driver and will continue to bring in consumers. IWSR Drinks Market Analysis predicts that the CAGR for bourbon will be plus five percent in volume and plus eight percent in value between 2021 and 2026.
“IWSR forecasts bourbon sales to increase in 2023,” says Brandy Rand, the chief strategy officer at IWSR Drinks Market Analysis. “In 2016, bourbon held 26% volume share of the whiskey market in the U.S. In 2021, this had grown to a 30% share and IWSR forecasts it to grow to a 31% share by 2026. The level of investment by multinationals in bourbon production and storage facilities in order to meet growing demand points to a very positive future.”
Bourbon has historically had its lowest performance in the third quarter on Drizly. That’s quickly followed by the fourth quarter, which is the strongest performer. That’s one major reason to steadily ramp up inventory going into Q4, starting with the top-selling bourbon brands on Drizly while keeping an eye on rising SKUs and new formats like ready-to-drink cocktails.
“Both are important for retailers to consider when planning their bourbon inventory,” Paquette says. “While the tried and true top-sellers are essential for retailers to have in stock to attract consumers seeking those specific products, having lesser-known and innovative SKUs is also a great way to stand out among the competition and attract consumers looking for something new in the bourbon category.”
The higher end of the price spectrum of bourbon average unit price on Drizly has seen notable year-over-year growth. The share of bottles $100 or more rose from a 10.5% share in 2021 to a 12.2% share in 2022. Other higher price segments $50 and above rose as well, with the $90 to $100 range going from a 1.9% share to a 2.2% share; $80 to $90 range going from a 2.3 percent share to a 2.6 percent share; $70 to $80 range going from a four percent share to a 4.4 percent share; $60 to $70 range going from a seven percent share to a 7.7% share; and the $50 to $60 range going from a 12.7% share to a 14% share.
Conversely, the share of bourbon sales on Drizly in every price bracket under $50 has decreased.
The share of bourbon sales for bottles between $20 and $30 decreased from 21% to 18% year-over-year, while the share of sales in the $50 to $60 range increased from 12% to 13%. The share of bourbon sales for bottles between $60 and $100 all increased slightly as well, while the share of sales for bourbons more than $100 increased from six percent to nine percent.
Outside of whiskey, a rising percentage share of tequila sales competes with the top whiskey subcategories. Neither tequila nor the other whiskey subcategories meet bourbon’s overall share of sales, however.
