Marketrend: Alcoholic Beverages.

Last year, U.S. alcohol sales totaled $138 billion, according to Impact Databank. Over the past five years, beer sales grew at about a 1% rate, with a 1% decline forecast for 2004. On a volume basis, the U.S. wine industry will grow 6% in 2004, after growing at a 3% rate over the previous two years. Part of the appeal: the idea that a glass of wine is healthy. The $150 billion global wine industry saw volume rise nearly 2% in 2003, according to just-drinks.com.

Beer — The $67 billion U.S. beer market is fueled by the low-carb craze, with light beers set to surpass regular beer sales in 2005, according to Mintel International. In 2003, light and low-carb beers made up 47% of U.S. beer sales. Another bright spot: premium beer. Over the past three years, total global premium beer sales rose by nearly 35% to $116 billion, according to just-drinks.com.

Spirits — With Generation Y opting for martinis and boomers indulging in luxury items, super-premium alcohol is hot. While overall vodka sales grew 15% over the past four years, U.S. sales of super-premium brands have increased by 32% in the same period, to 41.4 million cases in 2003. Another fast riser: ready-to-drink beverages, like Smirnoff Ice and Bacardi Breezer, which were among the best-selling brands in 2003.

Wine — Aging baby boomers, meanwhile, are developing a taste for finer wines, spurring sales of premium wine and driving higher consumption. U.S. per capita wine consumption reached a 20-year high at 2.5 gallons per year, according to the New York Wine & Grape Foundation. But that only equals the 1980 level (consumption dropped to 1.9 gallons between 1980 and 1990). In 2003, New World wines overtook French wines on global export markets for the first time.

Hot: Boru, Hpnotiq, lo-carb beer, pinot noir, Yuengling

Not: Beer, cabernet sauvignon

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