DISCUS

New Distilled Spirits Council Analysis Shows Rye Whiskey Skyrockets in U.S. Market

August 4, 2015 01:33 PM


WASHINGTON, DC –  Rye whiskey, Bourbon’s spicy cousin, is making a roaring comeback according to new supplier data from the Distilled Spirits Council. 

Since 2009, Rye whiskey volumes have grown 536% from 88,000 9-liter cases to over a half million cases (561,000) in 2014.  In value terms, that translates into a 609% jump from slightly over $15 million in supplier revenues in 2009 to over $106 million in 2014.  This represents approximately $300 million in retail sales according to David Ozgo, Distilled Spirits Council Chief Economist.

“The growth of Rye whiskey has been phenomenal, given that as late as 2000, Rye volumes were virtually nonexistent with only a handful of brands in the U.S. market,” said Ozgo.  “By 2014, there were over 100 brands, and the sheer numbers tell the story.  While it still represents a small share of the overall American whiskey category, its growth is skyrocketing.”

U.S. Rye Whiskey Growth, 2009 - 2014
Year 9-Liter Cases
(000)
Supplier Revenues
(Millions)
2009 88.2 $15.0
2010 107.7 $20.1
2011 184.4 $34.5
2012 296.9 $55.6
2013 398.4 $74.6
2014 561.5 $106.4
Source: Distilled Spirits Council

 

Ozgo attributed Rye’s revival to the following factors:

  • Growing interest in American whiskeys in general from 2009 to 2014.  Bourbon and Tennessee whiskey volumes grew 28.5% and revenues rose 46.7%, reflecting consumers’ taste for more premium quality.
     
  • Americans are embracing the heritage of spirits products, and Rye whiskey has a long heritage in the United States.  Rye whiskey was the original grain of the East Coast, and George Washington had the largest Rye whiskey distillery in early America on his Mount Vernon, Virginia estate.  The historic distillery has been reconstructed and was opened to the public in 2007.
     
  • The revival of cocktails and cocktail culture; in particular classic cocktails which, pre-Prohibition, were often Rye-based. 

Famed Washington, DC bar owner Derek Brown, who is also Imbibe Magazine’s “2015 Bartender of the Year” and Chief Spirits Advisor for the National Archives Foundation, said, “Bartenders have embraced rye whiskey not just for its history in classic cocktails such as the Manhattan and Old Fashioned but also because it adds spice and backbone to new recipes as well.”

Below is a favorite Rye whiskey cocktail from Derek Brown:

Rye Whiskey Sour
Serves One
5.5 to 7.5 oz. Coupe or Cocktail Glass
1 1/2 oz. Rye Whiskey
3/4 oz. Fresh Lemon Juice
3/4 oz. Simple Syrup
Brandied Cherry

Shake with ice, strain into chilled cocktail glass and garnish with a brandied cherry.

 

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