Trading Down in Vodka Prompts Growth for Skyy, Svedka and Smirnoff

Dear Client:Volume growth of U.S. spirits at the off-premise continues to grow, reports UBS analyst Melissa Earlam based on Nielsen data, but trading up trends especially among higher end vodkas are starting to reverse. In the four weeks to March 7, Nielsen data shows that the U.S. grocery channel, which covers 10% of spirits volumes, grew 3.1% in volume compared to the 12 week trend of 2.3% and the 52 week trend of 3%.Price/mix also picked up as promotion activity