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By John Wakely

Even if intake of spirits on an international scale is monstrous, the spirits derives its earnings from a comparatively small variety of nations and product traces. This publication offers an outline of all facets of the undefined, masking all of the significant catego

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By John Wakely

Even if intake of spirits on an international scale is monstrous, the spirits derives its earnings from a comparatively small variety of nations and product traces. This publication offers an outline of all facets of the undefined, masking all of the significant catego

Show description

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Extra info for The International Spirits Industry (International Trade)

Sample text

So while the function of marketing and distribution in spirits companies is to sell more 45 THE INTERN ATION AL SPIRITS INDUSTRY or at least higher-priced alcohol, it must operate in the framework of legislation and culpability (if they behave irresponsibly). This chapter is accordingly written within such a framework. Taxes, tariffs and duties The introductory comments above imply a tax, related to an alcohol product. For the purpose of this book we will refer to taxes as being sales taxes, tariffs as being import duties and duties as referring to taxes that specifically relate to the alcohol content of a beverage.

High per capita spirits consumption is dominated by Eastern Europe, with six of the top ten positions. While Asian countries display limited consumption, both Japan and China occupy positions near the top of the table. South Korea should be added, but it is not included in the World Drink Trends data. 6 litres per person. This figure actually advanced in 1998 despite the current economic difficulties that curtailed consumer spending in the country. Other estimates place Thailand as the second largest distilled spirits-consuming nation on a per capita basis in 1998, yet its consumption was estimated to be only a third of that of South Korea on a per capita basis.

Comments such as ‘spirits consumption is declining’ (even if true, which is dubious) are on a global basis meaningless for the industry. Even with all the talk of emerging markets (which lessened anyway in the later 1990s), profits of the spirits industry remain focused on the developed world. The reason is simply that in the spirits industry mix is far more important than volume: a case of VSOP cognac is infinitely more valuable than a case of Indian whisky. The other conclusion we can make at this stage is that women are becoming much more important to the spirits industry.

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