Vessels at sea are not subject to many of the rules that apply to alcohol on shore. Nowhere is this more relevant than the US, the country that account for a significant share of an industry valued at an estimated $66.2 billion.
American cruise lines are free of the US three-tier-system and can source their wines and spirits in international, duty-free, waters. This gives their beverage directors advantages such as buying directly from wine producers without having to pay the multi-tier markup that can lead to a bottle selling in a US retail outlet for nearly four times the ex-cellars price in Europe.
Despite the downturn it suffered during the pandemic, the cruise industry is an increasingly important tourism sector. According to the Cruise Lines International Association (CLIA), this year will have seen approximately 35.7m passengers, 6% more than in 2019. JP Morgan Research expects that the industry will continue to grow over the next four years, capturing nearly 4% of the $2 trillion global vacation market.
Bigger ships, younger passengers
JP Morgan offers several explanations for this trend. These include new ‘mega-ships’ with improved facilities and private destinations which, it is believed, are helping to attract more younger and first-time passengers, as well as the ageing baby boomers who were previously seen as the mainstay of the market.
The all-inclusive packages offered by the cruise lines are also appealing to holidaymakers on a budget. Some of these include basic wine options, but all of the cruise lines seek to obtain substantial revenue from their wine lists, and daily beverage packages such as the Holland America Line ‘Signature Beverage Package’ for around $55 per person, per day. This entitles passengers to 15 “beers, spirits, cocktails and wines by the glass priced at $11 and under, as well as Coca-Cola™ products, premium coffee, such as espresso and cappuccino, juices, mocktails and bottled water (sparkling and still).”
Another $5 per day, buys the ‘Elite Beverage Package’ include ‘premium spirits, cocktails - including Dale DeGroff’s Original Cocktails - and wines $15 or under’.
Click HERE to read the full article.