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There's no beverage of moderation, only the practice of moderation.

Understanding Moderation

Part of responsible drinking is understanding that a standard drink of beer, distilled spirits and wine each contains the same amount of alcohol. It's not what you drink, it's how much that counts.

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There's no beverage of moderation, only the practice of moderation.

Committed to Responsibility

For more than 75 years, the spirits industry has adhered to a rigorous set of standards for beverage alcohol advertising and marketing. Click here to learn more about the Code.

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December 4, 2003 07:00 PM
Washington, D.C., December 5 – On the 70th Anniversary of Prohibition Repeal, the Distilled Spirits Council called 2003 a banner year for the spirits industry in the United States, projecting all-time highs for industry revenues at the supplier level of nearly $14 billion, and an unprecedented series of market modernization victories that rolled back Blue Laws across the nation. “The spirits industry had a banner year in 2003, with record revenues, strong earnings and great momentum behind marketplace modernization,” said Council President Peter H. Cressy. “Our companies are doing very well, as resurgent consumer interest in cocktail style and culture has produced excellent results for the bottom line. Most importantly, we continue to roll back the legacy of Prohibition, achieving broader cultural acceptance and appreciation of industry heritage, with a spirit of innovation and the firm commitment to responsibility.” Cressy cited a number factors contributing to the industry strength, which again saw overall market share gains for spirits versus beer: Market modernization – Five states have passed legislation allowing expanded Sunday Sales of spirits (MA, NY, PA, DE, and RI) in 2003, increasing the total to 27 states overall. The momentum continues. “These blue law legacies of the Prohibition-era are falling away, as states recognize consumer convenience demands and the lost revenue implications.” Also, five states (KY, TX, SC, MA, and PA) added consumer sampling laws for spirits (Tastings) for a total of 39 states. “This encourages consumers to explore new products and categories and puts wind-in-the-sails of the profitable trend toward premium and super premium choices.” Tax – In the worst state fiscal climate in memory, the industry focused the debate on onerous hospitality taxes, in broad coalitions with other interested parties, and 26 out of 30 individual state tax increase proposals in 2003 were rejected. “State legislators have recognized the folly of subsidizing travel, tourism and conventions on the one hand, and then undermining the profit center of the hospitality sector with job-killing taxes beverage alcohol taxes.” International Trade -- In 2003, the U.S. distilled spirits industry benefited from the general worldwide trend toward reductions in tariff and non-tariff barriers and other market openings in several countries, including China, Singapore, Chile, Romania, and Taiwan. U.S. spirits exports reached over $550 million in 2002 and the Council projects U.S. exports will increase 5.6% in 2003. Advertising – Distilled Spirits television advertising continues to increase and is now aired on most major cable networks and over 500 local stations, most of which are network affiliates, in major markets across the country—a ten-fold increase in 3-4 years. Cultural Acceptance – Growing interest in cocktail culture, style, innovation, and industry heritage has drawn adult consumers to explore new products and categories. “The style, sophistication and elegance of the cocktail have recaptured public imagination across the country,” Cressy concluded. 2003 Distilled Spirits Council Revenue Projections: Supplier Revenues (millions) Category 2002 Projected 2003 % Increase BOURBON $1,269 $1,328 4.6% BLENDED WKSY $ 327 $ 317 -3.0% SCOTCH SINGLE MALT $ 200 $ 228 13.7% SCOTCH BLENDED $1,058 $1,100 4.0% CANADIAN $1,311 $1,303 0.6% IRISH $ 66 $ 75 14.2% GIN $ 848 $ 856 1.0% VODKA $2,740 $2,969 8.4% RUM $1,375 $1,453 5.6% BRANDY $ 459 $ 453 -1.3% COGNAC $ 678 $ 781 15.3% CORDIALS & LIQUEURS $1,745 $1,857 6.5% TEQUILA $ 845 $ 956 13.1% COCKTAILS $ 251 $ 270 7.6% TOTAL $13,170 $13,945 5.9% VOLUME (nine-liter cases): 2002 2003 % Increase 153.3 million 158.0 million +3% Sources: Distilled Spirits Council of Economic and Strategic Analysis Supplier Gross Revenues (Billions) Year Beer Spirits Wine Total 1999 $21.20 $10.66 $6.00 $37.86 2000 $22.60 $11.70 $6.41 $40.71 2001 $23.80 $12.22 $6.63 $42.65 2002 $24.10 $13.17 $7.04 $44.31 2003P $24.46 $13.95 $7.46 $45.87 Market Share Year Beer Spirits Wine 1999 56.0% 28.2% 15.8% 2000 55.5% 28.7% 15.7% 2001 55.8% 28.7% 15.5% 2002 54.4% 29.7% 15.9% 2003P 53.3% 30.4% 16.3% Distilled Spirits Industry Stock Index versus S&P 500 DSI S&P 500 Year-to-Date (through 11/30) +27% +20% 4 years (1/1/00 – 11/30/03) +93% -27% CONTACT: Frank Coleman or Lisa Hawkins Telephone: 202-682-8840 SCROLLER Publication Name: Publication Author:


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