1. |

2. Contents
Background and Objectives Industry Overview Research Results v v v
Consumer Purchase Behavior
Gifting and Entertaining
Touchpoint Influence v v v
Digital Best Practices v |

3. Background, Objectives, Outcomes
Through a combined Havas/Evolve Media research partnership, we wanted to deepen our knowledge of sentiment, decision-drivers and purchase behavior of the Spirits consumer to support targeting efforts, and enhance our understanding of the role of media touchpoint
Objectives
Business Outcomes
Uncover trends in Spirits consumption
Understand the relationship between consumer behavior and brand adoption
Identify key drivers of seasonal gifting
Uncover the impact of each media touchpoint in the decision journey
Understand the role of digital media in driving consideration
Inform communication strategies across consumer cohorts
Develop guidelines/best practices for communication strategy across media channels
Develop tactics that drive trial and brand choice
Identify opportunities for increasing digital advertising campaign efficiency and effectiveness
Inform Creative messaging |

4. |

5. Consistent YOY category growth
2015 vs 2014
Consistent YOY category growth
4.1 %
Growth Up
3.4 %
U.S. spirits supplier 2015 revenues $24.1B
Growth Up
Volume growth up 2.3 % Revenue growth up 4.1 % Export volume growth up 3.4 %
2.3 % V V
Growth Up V |

6. Spirits is pulling share from the beer category
55.5 %
49.8 %
48.8 %
48.3 %
47.8 %
47.5 %
28.7%
33.3%
34.3%
34.7%
32.5%
35.4%
15.7%
16.9%
16.9%
17.0%
17.0%
17.0%
2000
2010
2012
2013
2014
2015
wine
spirits
beer |
Source: DISCUS Distilled Spirits Council of the US – February 2015

7. Growing interest in Dark Spirits reflected in sales trend
Dark Spirits Bourbon, Rye, Whiskey
White Spirits Vodka, Gin, Rum, Tequilla
9-Liter Cases
%Change
9-Liter Cases
%Change
58 MM
0.0%
100 MM
0.0%
2010
2010
58 MM
1.1%
105 MM 5%
2011
2011
59 MM
2.5%
110 MM
4.1%
2012
2012
60 MM
3.4%
110 MM
1.4%
2013
2013
63 MM
2.3%
113 MM
0.7%
2014
2014
65 MM
2.5%
114 MM
0.8%
2015
2015 |
Source: The Beverage Information & Insights Group, Liquor Handbook 2015/Mintel

8. Media investments have followed the shift to dark spirits
Ad Spending (MM)
Ad Spend ($00)
$150
$130
$110
$90
$70
$50
$30
$10 $0
300
275
250
225
200
175
150
125
100 75 25
-$56 MM
-29% |
Vodka
-9% |
Tequilas
+$56 MM
14% |
Rum
63% |
Bourbon Whiskey
-9% |
Whiskey
79% |
Scotch Whiskey
78% |
Brandy &
Cognac
-12% |
Gin
2010
2015
2010
2015
7% |
Canadian Whiskey
White Spirits
Brown Spirits
2011
2012
2013
2014
2015 |
Source: Kantar Stradegy,

9. With the proliferation of smartphones,
consumers have more access to each other and to new ideas
% of Adults Who Own…
In 2016, people spend
2 hours and 11 minutes
MORE on digital media
Than they did 5 years ago.
10% 2011
83% 2011
35% 2011
45% 2015
92% 2015
68% 2011
Tablet
Smartphone
Cellphone |
Source: Pew Research; eMarketer