The US spirits industry, where sales have been under pressure in recent quarters, faces “significant headwinds” over the next year, according to industry researchers.
The Wine & Spirits Wholesalers of America (WSWA) has forecast US spirits sales will continue to decline in the first half of next year.
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In a report covering the third quarter of 2024, the WSWA said inventory management in the industry remains “tight”.
The organisation said premiumisation trends across the US spirits and wine industries remain “mixed”.
“We predict core spirits will continue to face significant headwinds over the next 12 months,” the WSWA’s SipSource report said. The industry body defines “core spirits” as all spirits that are not sold as RTDs.
It added: “This continues the trend we have seen over the last 24 months as core spirits consumption gives back gains from the Covid-19 period and moves towards pre-Covid norms.”
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By GlobalDataEarlier this month, the WSWA forecast 12-month depletions of core spirits would be down by just under 5.6% by the end of June next year.
Distillers hope the trend for premiumisation – where consumer drinks less but pay more when they do – regains the momentum lost amid price rises and the press on spending.
According to the SipSource report, vodka, American whiskey, and gin “continue to premiumise”. However, it said the Tequila and Cognac categories (and their respective wider agave and brandy markets) are seeing “revenue trends struggling to keep pace with volume changes”.
In wine, the report added, “segments like $8-$12 table wines are underperforming, while $50+ domestic table wines are showing some positive movement”.
At the end of October, data from the National Alcohol Beverage Control Association (NABCA) underlined the US spirits industry remained a tough trading environment, with sales by volume and value declining across most categories in September.
