...Low er-Than-Average Risk Profile: The global spirits sector benefits from regular product consumption and an absence of risks stemming from technology and R&D, or heavy and volatile investment cycles. Spirits makers' input price volatility is also limited. Major risks for companies in the sector relate to changes in customer sentiment, such as shifts in preferences betw een spirits categories, and high competition. These risks are more prominent for spirits producers compared to brew ers, as there are more options for consumers of spirits and the sector is much less consolidated than beer. Changing Consum e r Habits: Higher-spending consumers tend to prefer more artisanal spirits over mainstream ones. Fitch Ratings expects consumer demand for new , unique spirits brands and craft features to continue grow ing. This trend is likely to keep producers of large, w ell-established brands under high competitive pressure and require them to constantly support their products through active marketing...
