Spirits sales in the US dropped in value and volumes in January, new NABCA data shows.
Total spirits sales value dropped 3.7% in January to $917.3m, while volumes in the month were down 2.1% at 4.3m nine-litre cases, according to figures from the National Alcohol Beverage Control Association.
NABCA's data covers 18 control states, including off- and on-premise sales.
In the twelve months to the end of January, spirits sales value in the US was down 3.1% at $13.2bn.
Spirits volumes dropped 1.6% to 60.3 million nine-litre cases in the period, attributed to "fewer selling days in Michigan, the second-largest spirits control state".
Cocktails booked the largest volume growth in January. The measure was up 26.1% to 301,054 nine-litre cases, attributed to canned ready-to-drink products.
Cachaça also grew 1.2% in the month but from a much smaller base, to 543 nine-litre cases. In the 12 months to the end of January, the spirit's volumes dropped 5.5% to 8,967 nine-litre cases.
Tequila volumes rose 2.1% in the month to 479,555 nine-litre cases. Sales value of the spirit however dropped 2.6% to $161.5m.
In the 12 months to the end of January, Tequila sales volumes rose 1.9%, while value dipped 0.4% to $2.51bn.
The association said Tequila's volume growth "must be viewed in the context of a 2.3% price mix decline, the weakest price mix performance among all categories".
Spirits major Diageo recently shared it had been facing a tough trading environment with Tequila in the US which had taken a hit to organic sales in North America.
In prepared remarks on the group's half-year results in February, CFO and former interim-CEO Nik Jhangiani said the decline in organic sales in North America “was almost entirely driven by Don Julio, Casamigos and Crown Royal”, adding “tough comparatives plus an increasingly competitive Tequila environment put pressure on results”.
Tequila sales in the US slid 23% in the first-half of Diageo's 2026 fiscal year, attributed to Don Julio and Casamigos. Don Julio sales were down 20.9% while Casamigos sales dropped 30.9%, attributed to “increased competition and also distributors reducing inventories to accommodate softer demand”, the group said.
Jhangiani said “ongoing Tequila litigation and media on additives and adulteration” had “exacerbated” the situation and had negatively hit consumer sentiment.
Diageo that same day also indicated it is ready to review its pricing and product strategies, as it continues to face muted consumer confidence in key markets, especially the US.
Following those remarks on 25 February, shares in the Pernod Ricard and Campari maker closed the day down amid investor concern of an increase in competition on price.
Campari's CEO Simon Hunt told Just Drinks last week it will focus more on “investing behind the equity” of its brands than simply cutting prices.
NABCA's January report also shows US sales volumes of Canadian and Irish whiskies dropped the most out of all spirits categories in the month, down 8.4% and 8.3%, respectively. Scotch followed closely with a 7.6% decline.
Sales value in the month dropped 7.6% for Canadian whiskey, 7.3% for Irish and 7.6% for Scotch.
These categories also all booked declines in value and volumes on a 12-month rolling basis.
