Depremiumisation hits US spirits sales
Core spirits sales have fallen by 5.7% in value over the last 12 months according to US wholesaler depletion data, as premiumisation pressure dragged down Tequila.
New SipSource data from the Wine & Spirits Wholesalers of America (WSWA) revealed a volume decrease of 4.4% for core spirits (excluding ready-to-drink) in the 12 months ending 31 March 2026.
SipSource attributed the drop to spirits depremiumising across price tiers and key categories, such as Tequila, which faces pressure in the US$50-plus range.
Within spirits, the US$50-US$99.99 tier has declined by 8.8% over the last 12 months, while products priced over US$100 have dropped by 9.3%.
Price tiers below US$50 saw smaller decreases between 4.2% and 5.6%.
Looking specifically at Tequila, the US$50-US$59.99 segment was down by 8.9% in volume and by 9.6% in value. The US$100-plus tier plunged by 16.5% in volume and by 14.9% in value.
The only price tier to grow within Tequila was the US$20-US$29.99 segment, which rose by 3.3% in volume and by 0.8% in value.
In comparison to spirits, wine reported an 8.3% volume drop and a 5.3% decline over the 12 months.
SipSource noted numerous inflationary challenges facing the alcohol industry, including fuel prices, tight inventories and consumers trading down.
“The current environment reflects tighter portfolio management, ongoing SKU rationalisation and more value-oriented consumer behaviour,” said SipSource analyst Danny Brager.
Total spirits saw a revenue drop of 6.5% in the off-premise in the year to March 2026, while on-premise revenue fell by 3.7%. Volume-wise, the category was down by 6.4% in the off-premise and by 2.3% in the on-premise.
In terms of key categories, all spirits segments were in revenue decline over the last 12 months.
Agave spirits fell by 5.6% in revenue in the 12 months to March 2026, while US whiskey dropped by 4.9%. Vodka was down by 4% and brandy/Cognac plunged by 10.7%.
Canadian whisky fell by 8.2%, Scotch decreased by 7.8%, gin fell by 5% and Irish whiskey was down by 6.7%. Cordials/liqueurs had the smallest drop, down by 2.7%, but the segment did see a 1.5% increase in the on-premise over the last 12 months.
For the first quarter of 2026, total spirits sales were down by 5.1% in volume and by 5.9% in revenue.
Agave spirits, which expanded from 9.4% to 13.3% of core spirits volume over the past six years, declined by 3% in volume and fell by 6.6% in revenue in the first quarter. One year ago, luxury Tequila revenue was up by 4.2%, SipSource noted.
Bright spot: RTDs
SipSource also highlighted that the spirits-based ready-to-drink (RTD) category continues to ‘significantly outperform’ the wider alcohol sector. SipSource said there were more than 750 spirits-based RTDs in the market, reflecting increased competition.
Spirits-based RTDs increased by 30% in value and now account for 28% of total spirits volume in the off-premise channel.
Meanwhile, wine-based RTDs increased by almost 14%, while malt-based RTDs continued to decline, according to NIQ cited by SipSource.
Brager added: “Spirits-based ready-to-drink cocktails remain a bright spot – but in an increasingly crowded segment where innovation, positioning and disciplined execution matter more than ever.”
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