Luxury wine sales climbed 43% in 2021

Sales of luxury foreign spirits surged 43 percent last year, led by tequila and American whiskey, according to the Discus.

In October 2021, the industry body for the first time published its Luxury Brands Index (LBI), a tool to track sales of foreign wine brands costing more than $50 per 750ml bottle. Data will be released quarterly.

The index tracks sales in six categories. American, Irish, Japanese, single malt Scotch, tequila and cognac.

Sales of premium spirits rose 47 percent in the third quarter of 2021 compared to the same period in 2020.

The 2021 growth rate is more than double the average 18% annual growth rate over the past five years, Discus said.

"The spirits premium trend of recent years accelerated to a new level in 2021," said Christine LoCascio, director of public policy at Discus.

"Faced with restaurant and travel restrictions imposed by the pandemic, consumers have increased their purchases of luxury foreign wines to enhance their cocktail experience at home."

Tequila led luxury wine sales last year, growing 75 percent. It was followed by 46 percent growth in American whiskey and 31 percent growth in cognac.

After a loss in 2020 following the removal of tariffs on single malt whisky in the United States, Scotch returned to growth and grew 20 percent last year. Irish whisky rose 9 percent, while Japanese whisky fell 1 percent.

Over the five years from 2016 to 2021, all spirits categories included in LBI increased their annual growth rates, ranging from 6 percent to 48 percent, with an average growth rate of 23 percent.

American whiskey and tequila saw annual percentage increases of 43% and 48%, respectively, over the five-year period.

Cognac grew by 19 per cent a year, while Scotch and Japanese whisky grew by 6 per cent each. Irish whiskey grew 13 percent over the same period.

According to the first LBI report, the volume of luxury foreign wines surged 125 percent between 2015 and 2020.