• MarketWatch, Wednesday, February 3, 2010 10:30 AM

Consumers drank "value" brands of bourbon, vodka and tequila at the expense of higher-end booze last year, according to Distilled Spirits Council of the United States (DISCUS) data, William Spain reports.

Overall sales were essentially flat at $18.7 billion, but a 1.4% volume increase enabled the category to gain market share against rivals such as wine and beer. Spirits market share is now 30.2%, up from 27.4% a decade ago. Irish whiskey grew the fastest in 2009 with volume growth of just over 10%; Tequila was next with a 5.2% upswing. In every category, with the exception of tequila, high-end and super-premium spirits saw volumes shrink.

DISCUS CEO Peter Cressy says that a long-term analysis of prior recessions shows that people tend to return to pricier brands as the economy improves. "Our data show that there is light at the end of the tunnel," he says. "The question remains, how long is the tunnel?"

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