Prepared Cocktails Return to Growth; Value Channels Sole Driver of $ Growth

Prepared Cocktails Beer, Wine, and Spirits (BWS) returned to dollar growth for the week ended Sept. 12 after more than a month of declines, NIQ reports with sales increasing +2.0%, while case volume slipped -1.9%. The rebound reflects continued strength in Spirits and Wine-based RTDs, which helped offset ongoing weakness in Malt RTDs and push the category back into positive territory.

• Beer continued to post declines, with dollar sales down 2.8% and volume falling 4.5%. While demand remains pressured following the summer selling season, the category's rate of decline has eased from recent lows.

For the four weeks ended Sept. 12, Beer underperformed, with dollar sales down 2.9% and volume dropping 4.1%. A multitude of broad alcohol struggles and consumer disinterest drove these losses (75%), followed by softer distribution (20%).

Weekly dollar sales decreased slightly to $949.0M from $950.4M the prior week, down just -0.1%, as sales held fairly stable considering the post-Labor Day demand reset.

Overall, Beer has ample room to rebuild strength, with football season now in full effect and many gameday drinking occasions unlocked. Domestic Super Premium enters growth mix, as momentum builds in smaller segments.

Beer’s top segments continue to limit category results. Domestic Premium headwinds were most prevalent, with dollar sales down 6.8% and volume down 7.4%, while Craft declined 6.3% in value and 7.4% in volume. Import saw notably slower losses (1% in value, 2.2% in volume). Domestic Super Premium returned to growth, with dollar sales growing 2.2% and volume up 2.3%.

Additional growth segments included both Cider and Non-Alcoholic Beer. Cider rose 4.2% in value and 3.2% in cases, while Non-Alcoholic Beer grew 10.4% in value and volume. Continued interest toward moderation, wellness, and better-for-you alternatives are fueling Non-Alcoholic Beer wins.

• Wine maintained its pattern of consistent softness, with dollar sales falling -3.7% and volume dropping -5.1%. Despite avoiding further deterioration, the category continues to struggle to generate meaningful recovery momentum.

A slippage in product availability explained 23% of the declines, followed by promotional underperformance (10%) and consumer behavior shifts (67%).

On a weekly basis, dollar sales saw a reduction, given that purchasing behavior settled after Labor Day, finishing at $370.3 million, down 1.7% from the prior week. Wine’s consumption challenges have yet to find a solution, resulting in an ongoing status of unimpressive performance.

There was one piece of good news in wine: Sparkling wine joined Non-Alcoholic as a growth contributor. During the four weeks ending Sept. 12, Still Wine led the downturn, with dollar sales falling 3.5% and volume down 5.1%. Sparkling Wine reached positive footing, with dollar sales up 1.7% and volume rising 0.8%.

Non-alcoholic Wine maintained its strength, with dollar sales increasing 19.8% and volume up 16.2%. Although its portion of the Wine’s sales is small, the contribution to broader recovery remains worth noting.

• Spirits once again proved the most resilient major category, with dollar sales down -2.6% and volume declining -2.7%. Its comparatively modest declines reinforce Spirits' relative strength within a challenging Beverage Alcohol environment.

Spirits gave back its Labor Day gains in the four weeks ended Sept. 12. Dollar sales were down2,6% closely matching the 2.7% drop in volume.

Across the top Spirits categories, (Vodka, Whiskey, and Tequila), performance varied notably. Whiskey posted the fastest declines yet again, with dollar sales down 5.4% and volume falling 6.1%. Vodka faced much more stable losses despite its decline, dropping 1.8% in value and 2.3% in volume.

In contrast, Tequila re-entered growth territory, with dollar sales up 1.5% while volume grew 5.2%.

Non-Alcoholic Spirits also offered strong gains, with dollar sales up 22.4% and volume rising +20.3%. All other Spirits segments remained as loss contributors, with dollar sales down -2.5% and volume declining -3.2%

A combination of buyer-related constraints and ongoing macro factors were responsible for 90% of recent declines. From a weekly perspective, Spirits sales totaled $516.8 million, down 4% from the week ending Sept. 5, in an expected slowdown as demand corrected after Labor Day acceleration. All in all, the Spirits sector continues to search for momentum as many traditional categories face fatigue with consumers.

Category results continue to reflect a cautious consumer backdrop. Beer remains the primary drag on performance, while Wine and Spirits have demonstrated greater endurance despite remaining below year-earlier levels. Prepared Cocktails (BWS) rebounded behind stronger Spirits- and Wine-based RTD performance, while persistent Malt RTD declines constrained overall category growth.

New Jersey, Michigan Buck Broader Market Trends

Most major markets posted declines in both dollar sales and volume.. New Jersey and Michigan were the exceptions.

New Jersey emerged as the strongest-performing market, leading major states in both value and volume trends. Dollar sales grew 0.5%, while volume increased 2.3%, highlighting the state's relative resilience against ongoing industry pressures. Michigan trailed behind New Jersey as dollar sales increased +0.5%, whereas volume declined -1.5%.

• Washington remained the weakest-performing major market, with case volume down 13.8% and dollar sales declining 7.9%. The state's results continue to lag well behind broader industry trends.

• State performance remains highly uneven, with only a handful of markets breaking from the industry's downward trajectory. New Jersey and Michigan distinguished themselves by delivering dollar growth despite continued volume pressure. Meanwhile, Washington's outsized losses underscore the significant disparity in performance across regional markets and the continued challenges facing Beverage Alcohol demand.

Only Value Channel Drive Growth

Dollar sales declined in almost every key outlet. Food posted the steepest drop at 3.2%, this was followed by Convenience down -2.3%, Liquor -1.7%, Club -1.5% and Mass Merchants -0.5%. All Others maintained sales gains, up +2.3%.

• Volume performance closely followed dollar trends. Conv led declines at -5.1%, followed by Food -4.5%, Liquor -2.8%, Mass -1.3%, while Club (+1.0%) and All Others grew volume (+4.0%).