DISCUS Releases LBI Q2 Report

The Luxury Brand Index (LBI), a tool created by the Distilled Spirits Council of the United States (DISCUS) to analyze sales of spirits brands at the top end of the distilled spirits market, shows luxury brands grew 23% in the second quarter of 2022 compared with the same quarter of 2021. 

DISCUS Chief of Public Policy Christine LoCascio stated that the positive trend is striking because it occurred despite the highest inflation in decades and negative economic growth in the second quarter of 2022.

“We continued to see strong consumer demand for luxury spirits brands through the second quarter of 2022 despite the current economic environment,” said LoCascio, notingthat historically, the spirits sector has been resilient during tough economic conditions“It appears macroeconomic headwinds slowed the astonishing growth rate of luxury spirits sales of 2021 but were not strong enough to reverse the positive premiumization trend. Distilled spirits are affordable luxuries that bring spirits consumers great joy. Consumers are willing to spend extra for that special spirit and choosing to drink better, not more.”

Key highlights of the LBI 2022 Second-Quarter Report include:

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  • Tequila showed the largest increase with 43% annual growth rate followed by American Whiskey that rose 30%.
  • Scotch Whisky grew faster than the year-ago period with a 13% annual growth rate in the current period compared with a 10% growth rate in the year-ago period. 
  • After a very strong showing in the year-ago period with a 48% annual growth, Cognac was able to hang onto its gains with a 9% annual growth in the current period.

Over the five years between the second quarter of 2017 and 2022, all spirits categories included in the Luxury Brand Index increased annual growth ranging from 8 to 45%, with an average rate of 24%.

To see the full LBI second-quarter report, click here.

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