Liquor Brands

Tracing back the beginnings of liquor is tough. Many historians agree that the first distilled alcohol was around 13th century AD, but there is wide speculation that it had been occurring much earlier. The historical record however points to 13th century AD, and without any concrete evidence to conclude otherwise, let’s agree on it.

Now, wine can develop without human intervention, and beer doesn’t need a ton of involvement. But distilling alcohol takes some work, as well as technology and advanced materials. Early uses of alcohol were not celebratory in nature. Rather, religious and medicinal uses called upon alcohol for a variety of things. Yet, it wasn’t long before people began to share and comment on the effects of alcohol. And from there the demand for distilled liquor skyrocketed.

Governments have argued and wrestled with alcohol for centuries. The prohibition years in the US from 1920 to 1933 exemplified this perfectly. This was when the trade of alcoholic beverages was banned nationwide via a congressional vote. It’s hard to imagine such a thing in 2020, but the Volstead Act prohibited the sale of alcohol, and government enforcement was robust and swift. While certain statistics such as less arrests for public drunkenness and lower rates of absenteeism were celebrated (presumably due to less alcohol), the public at large was not thrilled. By 1925, in New York City alone there were in the neighborhood of 50,000 illegal bars, “speakeasy clubs,” that attended to the public.

Over time the rules became more relaxed, and today, in most states, alcohol of all kinds is readily available to those of age. The liquor business is a big business. When it comes to revenue by country, the US is number one, followed by China, Japan, Brazil and the UK. In terms of total value, statistics point to roughly $1.3 trillion, and growing at an estimated compound annual growth rate of 3.9% moving toward 2026. Liquor brands are smartly poised to take advantage of this growth, as liquor of all kinds is consumed in nearly every country, worldwide. When analyzing liquor brands, they are broken into six principal categories: whisky, liqueur, rum, vodka, tequila and cognac. There of course are other liquors that don’t fall into one of these six, but these are the top dogs.

Whiskey is the biggest category worldwide, with leading brands such as Johnnie Walker, Jack Daniel’s, Crown Royal, Chivas Regal, Ballantine’s and Jim Beam. The second biggest is vodka with Smirnoff, Absolut, Grey Goose and SKYY heading up the category. Cognac and their premium brand, Hennessy, is a massive seller, and rum with Bacardi and Captain Morgan are nearly tied for market share. We then get into liqueur and brands like Ricard and Bailey’s, and finally tequila, with Jose Cuervo and Patrón.

The interesting twist with liquor brands is the brands themselves belong to a holding company. For example, Captain Morgan is rum, Bailey’s is liqueur and Smirnoff is vodka, and they all belong to a company called Diageo. Diageo competes with three other world players – Bacardi Co., Pernod-Ricard, and Brown-Forman. These four holding companies have complete control over the 30 top selling liquor brands worldwide, and a lot of control over the ones that follow.

Competition is fierce, and the financial returns are substantial. But perhaps the best thing about liquor brands nowadays is the barriers to entry aren’t nearly what they were in years past. This is why you’ll see so many new and novel brands in your supermarket attempting to compete with the big dogs. Enjoy responsibly!