Total Alc Continues to Lag 2025; Prepared Cocktails Slipped into Declines
Overall, latest category performance highlights both the volatile and divergent features characterized by alcohol. Prepared Cocktails lost some footing as the crucial industry growth engine. Beer is losing the traction it had established throughout early and mid-summer. Wine continues to face muted performance, while Spirits remains the most resilient of the core categories, sustaining its position as the most stable decliner.
Dollar sales for Total Alcohol fell 3.6% from a year earlier to $8.5 billion while case volume dropped 5.4% to 167.7 million cases in the four weeks ended Aug. 8, NIQ reports.
On a weekly basis, dollar sales generally held flat, reaching $2.1B, down -0.1% from the week ending August 1st. As summer winds down, early August’s subdued performance represents the overarching theme of pressure that has defined the industry this year, leaving just a handful of key seasonal weeks to support category trends.
Prepared Cocktails slipped into declines as traditional categories fragment further. Prepared Cocktails missed the mark on delivering much-needed growth, with sales decreasing 0.8% while case volume fell 5.2%. Although the segment remains well positioned for current consumer preferences, the glimpse at declines reflects the category’s building saturation and the competitive environment for growth.
Beer usurped Wine as the top decliner, as dollar sales dropped 4.5% and volume slipped 5.5%. After previously showing more resilient performance, Beer shows an increasing drag as summer drinking occasions narrow.
Category struggles were largely demand-led, with consumer disinterest driving 72% of total declines, while distribution hurdles accounting for about 25%. Weekly performance showed a modest boost, with dollar sales reaching $922.2 million from $918.9 million the prior week, a 0.4% gain. As seasonal support from summer winds down, industry headwinds are likely to become more apparent for the category
Core segments were the most notable decliners, led by Domestic Premium (-8.0% in value, -8.1% in volume) and Craft (-7.2% in value, -9.0% in volume). Import Beer experienced slower losses (-3.5% in value, -4.5% in volume). Positive contributions were seen elsewhere, continuously limited to select segments, Domestic Super Premium grew, up +0.3% in dollar sales and +0.2% in volume. Cider increased in value +2.0%, with volume also up +0.4%. Non-Alc Beer once again widely outperformed all other Beer segments (+9.3% in value, +9.2% in volume), with it’s success driven by a multitude of health and wellness trends.
Wine followed in showing consistent weakness, as dollar sales fell 3.8% and volume dropped 5.1%. Wine’s softness throughout summer has been largely steady, with minimal seasonal support shown.
During the four weeks ending Aug. 8, Still Wine drove category declines, with dollar sales decreasing -4.5% and volume declining -5.6%. By comparison, Sparkling Wine built on its recent strength, with dollar sales down just -0.1% and volume down -0.4%. On the opposite end, Non-Alcoholic Wine maintained its gains, with dollar sales increasing +16.9% and volume rising +13.3%, operating ever present as Wine’s fastest growth driver albeit a small contribution
Spirits experienced the slowest losses, posting dollar sales declines of -3.7% and volume losses of -3.9%. While category results continue to underperform, Spirits recent status as the most resilient traditional segment offers optimism for upcoming trends.
Across the top Spirits categories, (Vodka, Whiskey, and Tequila), results were bifurcated. Whiskey drifted the farthest into negative territory, with dollar sales down 5% and volume falling 5.8%. Vodka followed with similar but slower losses, as dollar sales declined 4% and volume slipped 4.3%. In contrast, Tequila held onto its recent stability, with dollar sales decreasing just 1.3% while volume grew 1.5%, inching closer to positive territory. Non-Alcoholic Spirits remained as the strongest performing segment, with dollar sales up 23.4% and volume rising 26.1%. Meanwhile, all other Spirits segments were a broad detriment, with dollar sales down 3.7% and volume declining 4.6%
Ohio and Massachusetts standout as broad nationwide underperformance drags on
Alcohol sales displayed soft performance across all key markets in the latest period, with nearly every top 10 state experiencing dollar and volume declines, NIQ reports. Ohio showed to be the most resilient state, with dollar sales slipping 2.4% and volume down 4.9%. In contrast, Massachusetts saw the deepest decline, with sales down 7.6% while volume grew 0.7%.
Volume results painted a different picture. Massachusetts offered the strongest results, as volume increased but sales fell (+0.7% in volume, -7.6% in dollars), while Washington held the largest volume declines (-9.5% in volume, -4.8% in dollars).
All in all, the industry’s mediocre results continue to span across the country. Ohio emerged as the strongest market in dollar sales, whereas Massachusetts holds this role in terms of volume. General underperformance in both dollars and volume is seen most concentrated in Washington.
Channel-wide alcohol slowdown continues
Retail channel results shared Total US pressure, as each key channel faced dollar declines. Club led declines at 5.2%, this was followed by Food at 4.2%. Convenience 3.9%, Liquor 3.3% , and Mass 2.7%. All Other continued to see the best results, up +1.5%.
Volume performance generally followed dollar sales, with some different rankings. Convenience stores topped declines losses at 6.8%, followed by Food -5.8%, Liquor -4.3%, Mass -4% and Club 3.4%, while All Others once again saw growth (3.4%).
Compared with the prior four weeks ended Aug. 1,, Mass experienced the sharpest swing in performance, after its previous dollar (-0.2%) and volume (-1.8%) trends.
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