2014 Forecast for Distilled Spirits and Wine: Expect Slowing Growth?

2014 Forecast for Distilled Spirits and Wine: Expect Slowing Growth?

The 2014 forecast for distilled spirits, as reported by Beverage World Magazine, expects to see an increase in volume as well as an increase in revenue between now and 2017.  However, the growth is expected to slow in comparison to the previous few years.  

At Liquid Packaging Solutions, Inc., we would not be surprised if distilled spirits numbers, in both volume and revenue, surpass these expectations between now and 2017.  As the report notes, craft distillery numbers have been increasing steadily, thanks in part to relaxed laws and regulations surrounding these spirits.  However, the article notes that these spirits may be a little more expensive than bigger, well known brands.  Also, not every distillery will be successful when such large scale growth creates excessive competition.  There will simply not be enough shelf space to accommodate each and every new product.  Still, we believe the article slightly underestimates the growth potential of the industry.

As a packaging machine manufacturer, 2013 saw craft distilleries become responsible for a larger portion of our total machine sales.  Due to the relaxation of certain laws noted above, many individuals and groups are pursuing their dreams of becoming craft spirit producers.  The equipment manufactured in 2013 included both automatic and tabletop filling machines, a variety of different capping equipment, including corkers and torquers, rinsing equipment and power conveyor systems.  The equipment for each craft distillery differed depending on the product itself, the bottles being used, the production demands and many other factors.  In addition, our work schedule in the first few months of 2014 indicates that the industry will require even more from our own production team than was necessary in the previous year.

While the industry may eventually slow down, we are betting that volume and revenue continue at the same pace or even grow between now and 2017.  From our perspective the craft distillery industry is in the middle, rather than the end, of a boom that will carry the industry higher in the next three to four years, while producing some innovative looks and tastes in an already exciting market.  We have found that craft distillers, more than any other industry, each have a unique personal background or story, beyond profit and bottom line, to go along with the opening of their business, some dating as far back as Prohibition and beyond.  It is often these personal touches, putting heart and soul into a business, that allows success above and beyond what is expected. We look forward to becoming a part of more of these stories in the near future!

For the full article by Jeff Cioletti visit Beverage World Magazine online.