December was a bit more merry for distilled spirits, Wine & Spirits Wholesalers of America said, but wine got another lump of coal in its stocking.

And as for a Happy New Year, here's how WSWA phrased it: "As we move into 2026, stability—not rapid recovery—remains the most realistic near-term goal."

While December provided some relief, the back half of calendar 2025 proved difficult for the combined Wine & Spirits category. Volume declines accelerated as the year progressed, with January through June showing a six-month volume decline of -6.4%, worsening to -8.0% from July through December. This deceleration highlights how fragile demand remained despite pockets of stabilization in certain segments.

 One of the more concerning structural trends continues to be the decline in PODs. In 2025, PODs fell -4.5%, following a -3.7% decline in 2024. Sustained erosion at this level raises questions about long-term distribution health and consumption occasions, particularly for Wine.

 Overall, calendar year 2025 was a struggle. That said, we believe trends will begin to stabilize in 2026. Importantly, while we do not expect a sharp rebound, we also do not see macro conditions worsening meaningfully. Spirits trends appear to have largely stabilized, though the December revenue dip bears close monitoring. Wine remains the greater concern, with softness persisting across all price segments. Meaningful improvement in Wine will be critical to improving total category performance in 2026.

Looking ahead, WSWA said first-quarter 2026 comparisons will be an important benchmark. In Q1 2025, Spirits declined 4.9% in volume and 3.6% in revenue, while Wine posted steeper declines of 8.3% in both volume and revenue. These comps create an opportunity for stabilization, but execution and demand recovery will matter.

Looking further into 2026, several product classes warrant close attention. Within Whiskey, Bourbon remains steady, while Irish Whiskey continues to experience significant short-term volatility. In Tequila, the “Other” segment remains strong, though Tequila-Reposado may have peaked. Finally, Prosecco stands out as a key watch item—can it continue to defy broader Wine trends and deliver another year of growth?