Alcohol Trends Continue to Cool Through the End of September

During the four weeks ending Sept. 26, Total Alcohol continued to trail year-ago performance, NIQ reports.

Dollar sales reached $8.4 billion, down 0.5% vs YA, while case volume totaled 164.5M, declining -2.5% from a year earlier. On a weekly basis, dollar sales totaled $2 billion, down 1.2% from the week ending Sept, 19. As summer-driven occasions give way to Autumn routines, alcohol sales continue to reflect a more measured pace of consumer demand.

Prepared Cocktails pull further ahead as category performance diverges

• Prepared Cocktails Beer, Wine, and Spirits (BWS) extended their growth streak, with dollar sales increasing 4.8%, and case volume returning to growth, up 0.7%. Continued strength from Spirits- and Wine-based RTDs highlights sustained consumer demand for convenience, variety, and modern beverage formats heading into fall.

• Beer remained under pressure, with dollar sales down 2.0% and volume falling 3.1%. While losses were less severe than recent periods, the category continues to face demand challenges as it moves further from peak summer consumption occasions.

Beer’s top segments continue to limit category results. Domestic Premium losses continuously lead the pack, with dollar sales down 6.1% and volume down 6.5%, while Craft declined 4.5% in value and 5.6% in volume. Import declines were less pronounced (0.6% in value, 1.8% in volume).

Domestic Super Premium maintained growth, with dollar sales and volume both increasing 3.7%. Other positive contributors included both Cider and Non-Alcoholic Beer. Cider rose 6.0% in value and 4.8% in cases, while Non-Alcoholic Beer grew 10.5% in value and 10.3% in volume. The strength seen in Non-Alcoholic Beer remains tied to modern wellness and moderation trends, whereas other resilient segments show growth can be achieved where consumer appetite holds steady, NIQ observed.

• Wine posted softer results, with dollar sales declining 1.4% and volume dropping 3.4%. The category continues to contend with evolving consumer preferences and ongoing pressure on consumption trends, NIQ said.

During the four weeks ending Sept. 26, Still Wine held as the primary category lagger, with dollar sales down 2.2% and volume sliding 4%. Sparkling Wine made progress on its growth journey, posting dollar gains of 3.4% and volume growth of 2.5%. Non-Alcoholic Wine also offered a helpful boost, with dollar sales rising +21.5% and volume up +18.6%. Although Still Wine losses have yet to be outweighed by the smaller Wine segments, their upward results are evidence of dispersed growth pockets in a challenged category.

• Spirits came close to returning to growth, with dollar sales down just -0.1% and volume slipping 0.5%. Compared with other traditional alcohol segments, Spirits remained the most resilient category during the latest period.

Across the top Spirits categories (Vodka, Whiskey, and Tequila), results remained divergent. Whiskey recorded the steepest decline, yet slower than recent periods, with dollar sales down 2.8% and volume falling 4.0%. Vodka broke into growth territory after previous losses, up 0.2% in value but down 0.5% in volume. Tequila built upon its recent momentum, achieving both dollar and volume growth (+4.1% and +8.2% respectively). Non-Alcoholic Spirits continued to see swift growth, with dollar sales up +23.8% and volume rising +18.9%. All other Spirits segments experienced gains as well, with dollar sales up +0.4% and volume declining -0.4%.

The latest results further emphasize the widening divide across alcohol categories. Beer and Wine continue to face sustained declines, while Spirits is approaching flat performance. Meanwhile, Prepared Cocktails (BWS) continue to separate themselves from the pack, strengthening their position as the industry's primary source of growth heading into the end of September.

New Jersey, Michigan build momentum while most top markets remain under pressure. Key state results remained largely aligned with broader US underperformance, with seven of the top ten state markets posting declines in both dollar sales and volume.

• New Jersey further distanced itself from the pack, delivering growth in both value and volume. Dollar sales increased 3.9%, while volume rose 5.8%. Michigan also outperformed national trends, with dollar sales growing +2.0%, despite volume declining -0.8%.

• Washington remained the weakest-performing key state market, with case volume 13.2% and dollar sales falling 7.1%. The state continues to face pronounced demand challenges, leading declines among major markets.

• Regional performance remains highly uneven, with only a select group of states generating meaningful growth while most major markets continue to trend lower. New Jersey has strengthened its position as a clear standout, Michigan has emerged as another bright spot, and Washington's prolonged downturn highlights the wide disparity in performance across markets heading into the end of September.

Channel performance improves, though Food and Convenience continue to lag

• Channel performance improved compared to recent periods, with a majority of major retail outlets returning to dollar growth. Food remained the largest decliner at -1.9%, followed by Convenience at -1.7%. Meanwhile, Club +1.0%, Liquor +1.0%, Mass +1.5%, and All Others +3.9% experienced sales gains.

• Volume trends painted a similar picture. Convenience (-4.6%) and Food (-3.1%) continued to face the greatest pressure, while Liquor (-0.2%) remained nearly flat. In contrast, Mass (+0.1%), Club (+3.2%), and All Others (+5.2%) generated volume growth.