According to Nielsen, U.S. sales growth for whiskey and brown spirits is outperforming the growth rate of the overall spirits category in 2008.

Whiskey growth rates have been rising steadily this year, with whiskey dollar sales increasing nearly $85 million or 4.4% in 2008 — up from 2.3% a year ago.  At the same time, whiskey volume, while declining a year ago, is now showing growth.

In comparison, dollar sales growth for all spirits has largely remained unchanged. 

The brown resurgence is being led by Bourbons, which doubled their dollar growth rate from a year ago.  Gains from the Canadian Whiskey, Blended Whiskey, and Irish Whiskey segments have also boosted sales of brown spirits.

Despite the struggling economy, ultra-premium products, with an average price of approximately $45 per bottle, continue to record the strongest growth rates among brown spirits.

Outside the U.S., whiskey sales are also trending upward, with 12 other countries, including Venezuela, Russia, Netherlands, Poland, Mexico, Turkey, and Bulgaria, recording double digit growth.

Brown spirits include all whiskeys: Bourbon/Straight, Blends, Canadian, Scotch, Irish, etc., as well as Cognac/Brandy.  White spirits include Vodka, Gin, Tequila and Rum, even if such categories might include aged — and hence brown — variants.

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Flagging sales in September, when growth dipped to 4.5% — a full percentage point below August growth levels, drove the declines.

“Shoppers are still trading down,” Mike Watkins, senior manager, retailer services, Nielsen noted.  “Family shoppers in particular, are trying to save money, with 70% saying on they are looking to economize on grocery shopping — up from 63% in June.” 

Among the top UK food retailers, Tesco remained the dominant value retailer, with a 28.3% share of grocery market spending during 12-week period ending October 4, 2008 — up 4.8% over the chain’s 28.0% share of value sales during the same period last year.

Meanwhile, Asda widened its lead in value sales over Sainsbury (13.9% share), achieving a 15.4% share of value food sales (and 8.3% year over year value growth) versus its 2007 share (14.7%).

Morrisons recorded the strongest year-over-year value sales growth of the top four food retailers (+9.6%), while Iceland showed the strongest overall growth (14.5%) during the 12-week period.

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Private label dollar sales are being driven primarily by higher commodity pricing — especially in staple categories that are dominated by private brands. But in recent weeks, private label unit sales have also grown — a sign that consumers are starting to shift away from established brands in search of better deals.

Among private label food brands, flour (+35%), baby food (+33%), and fresh eggs (+28.2%) showed the largest dollar percent change during the 52 weeks ending September 6, compared with the prior 52-week period.  Unit sales for those products remained flat during the same period: flour was up 7.2%, fresh eggs dropped 0.9%, and pasta grew by 0.6%.

Among non-food private label products, soaps and bath products (+23%), cough and cold remedies (+18%), and hair care products (+18%) showed the largest dollar sales growth during the period.  Paper products, like paper plates, paper towels, and toilet tissue, and aluminum foil were the top-selling non-food private label items. 

Across categories, health and wellness-oriented private brands also showed significant growth, according to Nielsen.  Products claiming to be “natural” (+11.4%) or “organic” (+22.5%), lacking in trans fat or saturated fat (+30.5%), or containing “multi-grains” (+16.6%) or “antioxidants” (+15.8%) showed the largest dollar sales growth during the period.  Products that claimed to contain no calories (-0.6%) or to be caffeine free (-2.2%) showed the only negative growth. 

Among organic private label items, milk, eggs, and produce – like mini carrots and salad mixes — were the top-selling items.

View in depth private label sales data from Nielsen.

Learn more about private label sales in convenience stores.

Read more about overall private label trends in Nielsen’s “Consumer Insight” newsletter.

Sales were strongest at large, out-of-town supermarkets, where 7% year-over-year growth was recorded.  In contrast, sales growth at large, centrally-located grocery stores slowed to just 1% year-over-year.

Food retailers who trade on value and price propositions also performed well.  Iceland saw 13% year-over-year sales growth, while Morrisons grew by 9.1% over the same three-month period last year. 

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