Luxury spirits sales grow by 15% in Q3

Sales of spirits priced over US$50 in the States rose by 15% in the third quarter of 2022 as the segment remains an “attainable luxury” for adults.

The Distilled Spirits Council of the US’s (Discus) quarterly Luxury Brand Index (LBI) report analyses sales of spirits brands that retail at US$50 or more per 750ml bottle.

The trade body noted that the spirits industry ‘remained resilient’ amid ongoing economic uncertainty with sales of luxury spirits growing strongly in the third quarter, albeit at a slower rate compared to previous quarters.

The second quarter of 2022 saw luxury spirits sales in the US rise by 23%, with Tequila experiencing the biggest increase. For the first quarter of this year, sales of luxury spirits in the country grew by more than a third, compared with the same period in 2021.

“While inflation continues to cut into consumers’ discretionary incomes, a special bottle of spirits remains an attainable luxury that brings great pleasure to many adults,” said Christine LoCascio, chief of policy and strategy, Discus.

“Sales of luxury spirits are also being buoyed by the resurgence of restaurants and bars coming out of the pandemic, as well as consumers elevating their cocktail experiences and bars at home.”

American whiskey and Tequila represented the largest increases in annual growth rate in the third quarter (Q3), up 33% and 29% respectively.

Japanese whisky rose by 20% after registering a decline in the same period last year.

Irish whiskey also performed strongly, growing by 17% in the third quarter after attaining a similarly high growth rate of 19% the year before.

Over the five-year period to Q3 2022, all spirits categories included in the LBI increased annual growth ranging from 8% to 44%, with an average rate of 23%.