This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Pre-mixed cocktails drive US spirits
Agave spirits and pre-mixed cocktails were the only spirits segments to post growth over the past 12 months in the US, according to new data.
The Wine & Spirits Wholesalers of America (WSWA) released its latest SipSource report for the second quarter (Q2) of 2024, which covers the 12 months to June 2024.
The WSWA said only pre-mixed cocktails and Tequila/agave spirits reported growth over the period. The WSWA compared this with June 2022, when only four of the 13 spirits segments performed negatively.
Reposado Tequila led growth for spirits, rising by 10.7%, with products priced over US$50 increasing by 25% and representing 32.8% of volume.
Geographically, regions east of the Rocky Mountains were the key driver of the segment’s growth, all showing increases of over 19%.
In contrast, the Tequila ‘other’ segment – any agave-based product that is not blanco, reposado, or añejo – was driven by lower-priced products.
“Products under US$17 in the Tequila-other segment are up 12.9%, with balanced growth between off-premise (+7.6%) and on-premise (+5.5%),” said SipSource analyst Dale Stratton.
“The South-Central region saw the strongest increase in points of distribution, up 11.9%.”
Pre-mixed cocktails now account for 14.9% of total spirits volume compared to 3.9% in June 2020.
“Pre-mixed cocktails remain both a blessing and a curse for the spirits category,” he added.
“The continued volume growth is clearly a positive, but lower prices are driving overall revenue down for the category.
“There are also logistical challenges in the supply chain, as the packaging and turnover rates for these products are more like beer than traditional spirits or wine.”
Total wine depletions were down by 8.2% for the year ending June 2024.
The American Craft Spirits Association and WSWA have released duelling statements this past week after an article claimed craft distillers are being hampered by the three-tier system.
Related news