Global market review of functional soft drinks ... - Just-Drinks

Global market review of 

speciality spirits – forecasts 

to 2013 

2009 edition

Page i 

Global market review of speciality 

spirits – forecasts to 2013 

2009 edition 

By The IWSR 

May 2009 

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Page iv 

Table of contents 


Single-user licence edition .......................................................................................................... ii 

Copyright statement ............................................................................................................... ii 

Incredible ROI for your budget – single and multi-user licences ............................................. ii 

just-drinks.com membership .................................................................................................. iii 

Table of contents ........................................................................................................................ iv 

List of tables ............................................................................................................................. viii 

Notes about the data .................................................................................................................. xi 

Chapter 1 Market overview .......................................................................................................... 1 

Chapter 2 Aniseed-based spirits ................................................................................................ 7 

Absinthe ................................................................................................................................. 7 

Definition ....................................................................................................................... 7 

Industry structure ........................................................................................................... 8 

Consumption trends....................................................................................................... 9 

Sambuca ............................................................................................................................. 11 

Product description and history .................................................................................... 11 

Industry structure ......................................................................................................... 11 

Consumption trends..................................................................................................... 11 

Key marketing developments ....................................................................................... 12 

International development and prospects..................................................................... 12 

Arak (raki) ............................................................................................................................ 16 



Domestic market trends ............................................................................................... 17 

International development ............................................................................................ 17 

Turkish raki .......................................................................................................................... 19 



Mey Içki................................................................................................................. 19 

Burgaz Alcoholic Beverages Corporation .............................................................. 20 

Elda ...................................................................................................................... 20 

Others ................................................................................................................... 20 



Ouzo (including tsipouro/mastika) ........................................................................................ 24 




Anis dulce ............................................................................................................................ 28 



Page v 





Pastis ................................................................................................................................... 32 

Definition ..................................................................................................................... 32 




Chapter 3 Cane-based spirits.................................................................................................... 36 

Cachaça .............................................................................................................................. 36 

Definition ..................................................................................................................... 36 




Germany ............................................................................................................... 42 

Portugal ................................................................................................................ 42 

United States ........................................................................................................ 43 

France .................................................................................................................. 44 

Spain .................................................................................................................... 44 

Aguardiente/Cana ................................................................................................................ 44 

Definition and history ................................................................................................... 44 



International prospects ................................................................................................ 48 

Chapter 4 Grape-based spirits .................................................................................................. 52 

Grappa................................................................................................................................. 52 

Product definition ......................................................................................................... 52 



Marketing developments .............................................................................................. 53 


Pisco/singani........................................................................................................................ 57 

Peruvian Pisco............................................................................................................. 57 

Definition ............................................................................................................... 57 

Domestic market trends ........................................................................................ 58 

International development and prospects .............................................................. 59 

Chilean Pisco .............................................................................................................. 59 

Definition ............................................................................................................... 59 

Industry structure .................................................................................................. 60 

Domestic market trends ........................................................................................ 60 

International development and prospects .............................................................. 60 

Bolivian Singani ................................................................................................................... 62 

Definition ..................................................................................................................... 62 


Domestic consumption trends ...................................................................................... 62 

Orujo .................................................................................................................................... 63 

Definition ..................................................................................................................... 63 


Page vi 



Vinjak ................................................................................................................................... 64 

Definition ..................................................................................................................... 64 

Consumption patterns .................................................................................................. 65 


Chapter 5 Fruit-based spirits .................................................................................................... 67 

Limoncello ........................................................................................................................... 67 

Definition ..................................................................................................................... 67 




Cassis .................................................................................................................................. 71 

Definition ..................................................................................................................... 71 


Consumption ............................................................................................................... 71 

Domestic market .......................................................................................................... 72 


Marketing developments .............................................................................................. 73 

Pálinka/palinca ..................................................................................................................... 75 

Kirsch eau-de-vie ................................................................................................................. 77 

Pear brandy ......................................................................................................................... 78 

Prune and plum brandy (slivovica) ....................................................................................... 78 

Calvados .............................................................................................................................. 79 

Chapter 6 Coconut-based spirits .............................................................................................. 82 

Arrack .................................................................................................................................. 82 

Definition ..................................................................................................................... 82 


Domestic trends ........................................................................................................... 82 


Chapter 7 Juniper-based spirits ............................................................................................... 83 

Genever ............................................................................................................................... 83 

Definition and history ................................................................................................... 83 



International developments and prospects ................................................................... 85 

Chapter 8 Root-based spirits .................................................................................................... 88 

Bitters .................................................................................................................................. 88 

Definition ..................................................................................................................... 88 



Main markets ............................................................................................................... 89 

United States ........................................................................................................ 89 

Germany ............................................................................................................... 90 

Italy ....................................................................................................................... 91 

Austria .................................................................................................................. 92 


Page vii 


Switzerland ........................................................................................................... 93 

Czech Republic ..................................................................................................... 93 

Hungary ................................................................................................................ 94 

Nordic trends......................................................................................................... 94 

Argentina .............................................................................................................. 94 

International prospects and development ..................................................................... 95 

Chapter 9 Rice-based spirits ..................................................................................................... 99 

Sake .................................................................................................................................... 99 




International development and prospects................................................................... 100 

Soju ................................................................................................................................... 100 

Product definition ....................................................................................................... 100 

Industry structure ....................................................................................................... 100 

Domestic market trends ............................................................................................. 101 


Shochu .............................................................................................................................. 102 

Product definition ....................................................................................................... 102 


Chinese spirits ................................................................................................................... 105 

Definition ................................................................................................................... 105 


Consumption trends................................................................................................... 106 


Chapter 10 Potato- or corn-based spirits ............................................................................... 110 

Aquavit............................................................................................................................... 110 

Definition ................................................................................................................... 110 


Consumption trends................................................................................................... 111 


Korn ................................................................................................................................... 114 

Definition ................................................................................................................... 114 


Consumption patterns ................................................................................................ 115 

International prospects .............................................................................................. 116 

Chapter 11 Cactus/agave-based spirits.................................................................................. 118 

Mezcal ............................................................................................................................... 118 

Definition ................................................................................................................... 118 


Domestic market trends ............................................................................................. 120 



Page viii 

List of tables 


Table 1: Global market volumes of speciality spirits by category, 2003-2013 (‘000s nine-litre cases, 

% change) ............................................................................................................... 5 

Table 2: Absinthe total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, 

% change and share) ............................................................................................... 9 

Table 3: Absinthe total global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre 

cases, % change and share) .................................................................................. 10 

Table 4: Sambuca total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, 

% change and share) ............................................................................................. 14 

Table 5: Sambuca global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, % 

change and share) ................................................................................................. 14 

Table 6: Arak/arrack total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre 


Table 7: Arak/arrack total global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre 


Table 8: Raki total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, % 


Table 9: Raki global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, % 


Table 10: Ouzo total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, % 


Table 11: Ouzo global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, % 


Table 12: Anice/dulce total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre 


Table 13: Anice/dulce total global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre 


Table 14: Pastis total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, 


Table 15: Pastis global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, % 



Page ix 


Table 16: Cane/cachaca total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre 


Table 17: Cane/cachaca total global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre 


Table 18: Grappa total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, 


Table 19: Grappa global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, % 


Table 20: Pisco total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, % 


Table 21: Pisco global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, % 


Table 22: Singani total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, 


Table 23: Singani global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, % 


Table 24: Limoncello total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre 


Table 25: Limoncello global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, 


Table 26: Cassis total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, 


Table 27: Cassis total global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, 


Table 28: Fruit eaux de vie global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre 


Table 29: Genever total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre 


Table 30: Genever global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, % 


Table 31: Bitters total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, 


Table 32: Bitters total global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, 



Page x 


Table 33: Sochu/Soju total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre 

cases, % change and share) ................................................................................ 103 

Table 34: Sochu/soju global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, 

% change and share) ........................................................................................... 104 

Table 35: Chinese spirits global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre 


Table 36: Rice-based global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, 


Table 37: Aquavit total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, 


Table 38: Aquavit global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, % 

change and share) ............................................................................................... 113 

Table 39: Korn/schnapps total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre 


Table 40: Mezcal total global volume and top brands’ volumes, 2003-2007 (‘000s nine-litre cases, 


Table 41: Mezcal global volume and top markets’ volumes, 2003-2012 (‘000s nine-litre cases, % 

change and share) ............................................................................................... 122 


Page xi 

Notes about the data 

Notes about the data 

Where ‘-’ or a blank table cell appears in The IWSR data tables, this indicates 

no sales recorded by The IWSR. When ‘0.0’ precedes ‘-’ in previous years, this 

indicates that the brand had not yet been launched in the year(s). There may 

be some cases where low sales are registered as ‘0.0’ due to rounding. Low 

sales may also be recorded as ‘Min’ to signify minimum sales. 

Unless otherwise specified, all data quoted in this report refers to 2007 market 

data. 

When ‘cases’ are quoted, these usually refer to nine-litre cases. 

Data in tables may not some due to rounding. 


Page 1 

Chapter 1 Market overview 

Chapter 1 Market overview 

While the broad perception today is that the global spirits market is rapidly 

approaching hegemony under the leadership of a number of multinational 

companies, the reality is somewhat different. It may surprise some, but the top 

ten m ultinationals in volum e term s only have around a xxxx% m ark et share of 

the global spirits industry between them . In As ia, it is even lower, at just xxx%. 

In Eastern Europe it is similarly low. In North America, by comparison, the 

share is xxxx% and in Northwest Europe it is xx%. The share accounted for is 

much higher if viewed in value terms. 

National and local producers continue to meet most of the demand in these 

large Asian and Eastern European markets. Many of these products, 

particularly in Asia and Latin America, fall outside of the mainstream 

categories that Western producers specialise in. 

The five largest spirits categories are: Chinese spirits (xxxm cases, xx% 

global share), vodk a (xxxm cases, xxxx% share), shochu/soju (xxxxm cases, 

xxxx% share), non-Cognac brand y (xxxxm cases, xxx% share) and Brazilian 

cachaça (xxxxm cases, xxx% share). The m ultinationals are scarcely 

represented in such vast categories. 

There are numerous other smaller local categories – not all in Asia – where the 

multinationals are also scarcely represented. These include fruit eaux de vie, 

bitters, aguardiente, arrack, bitters and pisco, to name just a handful. 

Many view the market for these local products as largely divorced from the 

market for international products. This is a contentious point. The IWSR 

believes that the fortunes of these two sectors are very much interlinked for a 

variety of reasons. 

Much of this vast non-Western-style consumption remains in cheap unbranded 

product. So there is a corresponding opportunity for the big national producers 

to trade consumers up – initially from unbranded products into local or national 

brands. For instance, in India, the move from cheap unbranded so-called 

country spirits into the local branded sector has driven the dramatic growth of 


Page 7 

Chapter 2 Aniseed-based spirits 

Chapter 2 Aniseed-based spirits 

Absinthe 

Definition 

Absinthe is a high-strength (xx%-xx% abv) anise-flavoured spirit derived from 

herbs, including wormwood. There is property found in wormwood called 

thujone, which is been purported to have hallucinogenic properties. 

Absinthe became popular during the phylloxera crisis of the late 1800s in 

France, when the disease attacked grape vines and, by the end of the 19 th 

century, had destroyed most of France’s vineyards, destroying the wine 

industry in tatters, and creating an opportunity for absinthe makers to provide 

cheap and accessible alcohol for the masses. It gained huge popularity in 

France and across Europe during the latter half of the 19 th century. 

. 

Absinthe has been documented as the preferred drink of the Parisian 

bohemian café set including: Van Gogh, Gauguin, Degas and Picasso, 

amongst others. Artists, poets and philosophers were said to enjoy the ‘mind 

altering’ and inspiring effects of drinking absinthe. As the work of the 

prohibition and temperance movements in Europe and the United States were 

gaining momentum, absinthe gained a bad reputation. It was duly banned first 

in Switzerland in 1910, in the US in 1912 and finally in France in 1915. 

Contrary to popular belief, absinthe was never banned in the UK. 

During the late 20 th century, the laws surrounding absinthe were gradually 

relaxed and production and popularity has been increasing across Europe ever 

since. 

Absinth (no “e”) production began in the Czech Republic around 1990. Czechstyle 

absinth does not conform to any of the historical standards for absinthe 

since it generally does not have anise, and does not go cloudy (louche) when 

you add water. 

A revival of absinthe began in the 1990s, when countries in the European 

Union began to re-authorise its manufacture and sale. By 2008, over 200 

brands of absinthe were being produced in a dozen countries, most notably in 


Page 36 

Chapter 3 Cane-based spirits 

Chapter 3 Cane-based spirits 

Cachaça 

Definition 

Cachaça has been produced in Brazil for over four centuries – even before 

rum was produced in the Caribbean. The two spirits are similar, in that both 

are derived from sugar cane, but cachaça is distilled directly from fermented 

cane juice, while rum is usually distilled from molasses, a residue of sugar 

production. Both are originally white spirits. Cachaça is generally not aged, 

while white rum, according to the rules of most producing countries, must be 

aged in wood for at least six months before being bottled. 

Industry structure 

The nature of the cachaça industry has remained substantially unchanged 

over the past two decades. 

In terms of the supply base, cachaça is highly regionalised. Müller de Bebidas, 

the maker of the Pirassununga 51 brand, remains the largest producer with 

sales of xxxxm cases and a xx% share. Pitú is the second -largest producer 

with a near xx% share. Pitú is the leading brand in the north -east and, from its 

headquarters just outside Recife, the company has expanded distribution to 

the north and south-east regions. 

Cachaça brand owners are not always producers. Many of the leading brands 

are bottled by companies that purchase their cane spirits from mills and 

cooperatives. 

There has been little in the way of mergers or takeovers of major cachaça 

companies. Most of the other major cachaça producers/bottlers are also 

family-controlled, which tends to slow the rate of consolidation. Some have 

financial problems with state and federal revenue agencies that render them 

unattractive to potential buyers. 

At the end of 2002, brewing group Grupo Farias acquired Industrias de 

Bebidas Paris, brand owners of Cachaça da Roça, which was the leading 

cachaça in the state of Rio de Janeiro, although produced and bottled in the 


Page 52 

Chapter 4 Grape-based spirits 

Chapter 4 Grape-based spirits 

Grappa 

Product definition 

Grappa is another traditional category that is staging a recovery of some 

degree. It holds a possibly deserved reputation as a rough drink that was 

traditionally made from grape pomace (the discarded grape seeds, stalks and 

stems that are a by-product of the winemaking process). 

Grappa can be young, aromatic, aged (in normal or aromatic wood), flavoured, 

or any combination of these. 

Aged grappas have only been widely available in Italy since around 2003. 

Commonly spiced or wood-flavoured, this segment is now showing growth – it 

can be m ark eted lik e Cognac or whisk y. It now acc ounts for xx% of grappa 

overall, up from x% five years ago. 


There are three categories of grappa producers: 

○ ‘Genuine’ distilleries, which produce grappa using stills (around xxx). 

○ Bottlers who buy grappa from various distilleries, then mix and bottle it 

(around xxx). 

○ Retailers who have own-brand products bottled for them by a distillery 

or bottler (such as wine producers who have their own marc distilled 

and then sell it alongside their wine). 

The IWSR reckons that the largest producers, with estimated percentage 

market share in 2007, are: 

○ Bonaventura Maschio xxx% 

○ Distilleria Bottega xxx% 

○ Stock xxx% 

○ Fratelli Branca xxx% 

○ Nonino xxx% 

○ Bocchino xxx% 

○ Roner xxx% 

○ Dom enis xxx% 


Page 67 

Chapter 5 Fruit-based spirits 

Chapter 5 Fruit-based spirits 

Limoncello 

Definition 

Limoncello is a lemon liqueur produced from lemon rinds, alcohol, water and 

sugar. Limoncello is produced in various areas of southern Italy, but the 

original and most prestigious production area is around Sorrento, just south of 

Naples. Despite being a relatively new product, limoncello is Italy’s thirdlargest 

spirits category, following grappa and bitters. 

It is difficult to estimate the total size of the market given the large amount of 

local production by small manufacturers, especially in the south. However, a 

rough estim ate for total production in Italy is xxxm nine -litre cases, of which 

around xxxxxxx is Lim oncello di Sorrento IGP [source: Consorzio di Tutela 

Limoncello di Sorrento]. 


Overall, limoncello is not a particularly branded market. There is a lot of home 

production, which is unbranded and sells mostly to the on-trade and to 

neighbours. 

The leading brand, Lim oncé, has a xxxx% m ark et share and is produced and 

distributed by Stock (owned by investment managers Oak Tree Capital 

Management), according to The IWSR’s estimates. The number two brand is 

Villa Massa, an IGP brand, with a m ark et sh are of xxx%. I Siciliani, owned b y 

Illva, has rapidly become the number three brand on the market despite only 

being launched in 2005. Limoncello di Capri, also an IGP brand, is part-owned 

and distributed by Molinari. 

Over xx% of the m ark et consists of sm aller fam ily owned producers. 

Averna export manager Michel Jordens says that the proliferation of limoncello 

products by a multitude of producers is problematic. “When we entered the 

category about ten years ago, it was just a fad. It really consolidated and 

became bigger. Unfortunately every Italian liqueurs producer has tapped into 

it. The consumer is getting confused by the array of products on offer. Not 


Page 82 

Chapter 6 Coconut-based spirits 

Chapter 6 Coconut-based spirits 

Arrack 

Definition 

Arrack should not be confused with arak, the former of which is a coarse spirit 

consumed in the eastern and southern Asian region. Arrack is manufactured 

from a large variety of substances, for example fermented rice, molasses or 

coconut juice. Arrack is transparent and is the colour of straw. It has a peculiar, 

but agreeable taste, usually described as somewhere between whisk(e)y and 

rum , and is about xx% to xx% ABV. The best arrack in Sri Lank a is xxx% 

distilled from coconut: although there is little coco nut (x% ABV or less) in 

mainstream arracks. 


In Sri Lanka, Distillers of Sri Lanka dominate the legal arrack market, with over 

xx% share. The com pany is a public ly listed com pany. Independent Distillers 

and Rockland are the other two main arrack companies in Sri Lanka. There is 

a large illegal and untaxed arrack m ark et: probabl y xx% the size of the legal 

one. 

Domestic trends 

In Sri Lanka, in many cases, arrack remains the only affordable liquor for the 

poor. Heavy arrack consumption in Sri Lanka means the country has one of 

the highest per capita consumption of alcohol in the world. 

International development and prospects 

In Sri Lanka, Rockland and IDL have only recently started to export small 

volumes of arrack, mainly to expatriate workers in the United Arab Emirates. 


Page 83 

Chapter 7 Juniper-based spirits 

Chapter 7 Juniper-based spirits 

Genever 

Definition and history 

Genever (which can also be spelled jenever and genièvre) is a juniperflavoured 

spirit mainly consumed in Holland, but also in Belgium and Germany; 

there is also very limited consumption in northern France. It was originally 

made by distilling malt wine (moutwijn) and flavouring it with juniper berries. 

Malt wine is distilled in copper stills from grains such as barley, corn, rye and 

wheat. 

The genever category is broken down into jonge (young), oude (old), korenwijn 

(corn wine) and graanjenever (grain genever). Fundamentally, they are 

different due to what levels of malt wine and sugar they contain or whether 

they are aged. 

Oude can contain no less than xx% m alt wine, whereas jonge contains no 

m ore than xx%; k orenwijn has to contain no less than xx% m alt wine and 

tends to be aged in oak casks. Graanjenever is made purely from distilled 

grain. 

Jonge genever came about with advances in distilling practices in the early 

20 th century which allowed the distillation of spirits from sugar beet instead of 

grain; these have a more neutral taste profile. The juniper berry has to be the 

main overriding flavour and the optimum alcohol by volume is believed to be 

around xx%. 


Bols is the dom inant pla yer, with a xx% share of the m ark et with five brands – 

Hartevelt, Bokma, Bols, Hoppe and Henkes. Established in 1575, Lucas Bols 

lays claim to being the oldest continuously operating liquor company. 

Naturally, there have been ownership changes and other upheavals during 

that long period. The latest came in April 2006, when the company regained its 

independence and was returned to Dutch control through a management buyout 

from then-owner Rémy Cointreau. Huub van Doorne, former member of 


Page 88 

Chapter 8 Root-based spirits 

Chapter 8 Root-based spirits 

Bitters 

Definition 

Bitters are spirits flavoured with bark, roots and herbs. The tastes range from 

bitter to sweet. The combination of these two seemingly contradictory tastes 

accounts for much of bitters’ consumer appeal. The two most common 

ingredients are bitter orange peel and cinchona. Angostura bark, cascarilla, 

cassia, gentian, orange peel and quinine are also commonly used. Bitters 

comm only have an alcoholic strength of xx%, because the y are usuall y 

consumed in small quantities. 

Bitters may be used either as flavouring for mixed drinks, or may be taken as 

aperitifs, liqueurs or – most commonly – digestives. They are also consumed 

as shots, particularly popular brands like Jägermeister. Some companies claim 

their products have medicinal qualities. 


The top ten bitters producers include four multinational groups. The bitters 

market is otherwise dominated by medium-sized companies, often family 

controlled, and these are necessarily prudent about investing heavily to create 

new markets. Four of the top ten companies have scarcely moved outside their 

country of origin: indeed xx of the top xx are basic all y one -m ark et national 

successes, hardly selling outside their own country. The smaller companies 

are basically ‘own country’ operators – except Angostura, which sells mostly in 

Australia, UK and the US. 

The bitters sector can show great dynamism, but the overall impression would 

be that most multinational planning groups largely ignore the sector, despite 

the extraordinary success of Jägermeister in the US. Pernod Ricard has 

enjoyed some success with its Ramazzotti brand, but this is seen as largely a 

regional European brand. 

In Germ any, the top five brands m ak e up xx % of the m ark et in 2008 

(Jägerm eister xxxx%, Ram azzotti xxxx%, W ilthener Gebirgsk räuter xxxx%, 

Kuemm erling xxx%, Flaem inger Jagd xxx%). 


Page 99 

Chapter 9 Rice-based spirits 

Chapter 9 Rice-based spirits 

Note: Brand sales are not currently available with 2007 data. Leading brands 

are Hakutsaru (c.xm cases); Gekk eik an (c.xxxm cases); Ozeki (xxxm cases), 

Nihon Sakari (xxxm) and Baek wha Sobok (xxxm). All are Japanese except 

Baekwha Sobok. 

Sake 

Product description and history 

Sake has played a central role in Japanese life and culture for the last 2,000 

years. 

Made primarily from rice, sake is a fermented beverage brewed using a microorganism 

called koji and yeast. It has an alcohol content from xx% to xx% abv. 

The quality of water used in brewing is essential. The rice varieties used in 

sake are the large-grain, soft varieties with a low protein content: 

Yamadanishiki rice is the most popular sake rice. 

The Japanese Government has created different sake denominations for 

different types of sake: Ginjoshu, Junmaishu, Honjozoshu and Futsushu. By 

brewing method, sake is classified as: Namazake, Genshu, Koshu, Taruzake, 

Nigorizake and sparkling sake. 


There are around xxxxx Sake breweries scattered through Japan, from 

Okinawa to Hokkaido. Multinational involvement is non-existent. 

Domestic market trends 

Sake has been declining in Japan because of its ageing image. Sake used to 

be drunk at all celebratory occasions such as festivals, building completions, 

births, coming of age, annual events, etc. Diet and lifestyles have changed and 

youth has been switching to a much wider array of drinks. 


Page 110 

Chapter 10 Potato or corn-based spirits 

Chapter 10 Potato- or corn-based 

spirits 

Aquavit 

Definition 

Aquavit (Akevitt in Norwegian, Akvavit in Swedish and Danish) is a flavoured, 

distilled spirit, ranging in alcohol from xxxx% to xx% ABV. It is clear to pa le 

yellow in colour. Aquavit is distilled from potatoes or grain, and flavoured with 

caraway or cumin seeds, or sometimes lemon or orange peel, anis, fennel and 

other flavours. 

While the Danish and Swedish variants are normally light in colour, most of the 

Norwegian aquavits are matured in oak casks for at least one year and for 

som e brands even as long as xx years, m aking them dark er. 

Norway is famous for Linje Aquavit, so called because it is shipped to Australia 

and back across the equator (Linie in Norwegian) in oak containers to produce 

a mellow flavour. While many experts claim that this method of ageing is a 

marketing gimmick, some argue that the moving seas and frequent 

temperature changes cause the spirit to extract more flavour from the casks. 

German aquavit is virtually always distilled from grain and generally has an 

alcohol content of xx%. 


Three companies control the global aquavit market. With the acquisition of 

V&S Group in July 2008, Pernod Ricard became the market leader. In 2007, 

the com pany accounted for over xx% of global aquavit m ark et, which stood at 

xxxxm cases. Arcus and Berentzen-Gruppe AG are the num ber two and three 

com panies, both accounting for a further com bined xx% of the global aquavit 

market. Arcus is owned by Sucra. Sucra in turn is part owned by Berentzen- 

Gruppe. 


Page 118 

Chapter 11 Cactus/agave-based spirits 

Chapter 11 Cactus/agave-based 

spirits 

Mezcal 

Definition 

Distilled spirits in Mexico date back to the days of the Spanish conquistadors. 

The indigenous Aztecs drank a drink called pulque, fermented from the sap of 

agave plant (called maguey). Agave had been cultivated in Mexico since prehistoric 

times. Agave is a water-retaining plant that grows chiefly in the dry 

Mexican climate. 

The Spanish found pulque fairly unpalatable and sought to improve it through 

distillation, a spirit that was termed Mezcal. Eventually the process was 

refined. Under traditional production methods, the fermented ‘must’ is obtained 

from the heart of the blue agave plant, which is typically the size of a large 

pineapple, but can grow much larger. This heart is heated in a stone furnace. 

The sap is then extracted from the pulp in a mill, fermented with yeast in a 

tank, and then double-distilled in a copper still (alambiques). It is then 

sometimes aged for a period in oak barrels. 

Prior to the latter part of the 19th century, most agave spirits were un-aged and 

uncoloured. Eventually, several distillers began ageing it using a local wood 

known as encino for tanks and barrels or, if finances permitted, they purchased 

used whiskey barrels from Kentucky. These used barrels imparted the ageing 

Tequila with a hint of oak and some colour. 

Like Tequila, Mezcal is also produced from the agave plant. It differs in that it 

doesn’t necessarily have to be produced from the blue agave plant and can 

come from other varieties. There are many different species of agave plant, 

each producing a different flavour of Mezcal. Chihuahuan Mezcal, for instance, 

is called sotol after the plant that is used there. 

True Mezcal can only be produced in the ‘Mezcal region’. This includes certain 

territories of the states of Oaxaca, Guerrero, Durango, San Luis Potosi and 

Zacatecas. The appellation of origin gives these places the exclusive right to 


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