Total Alcohol Sales Pressured; Spirits Closes Gap with Beer; RtDs Win Again

Total alcohol dollar sales reached $8.58 billion in the four weeks ended Aug. 1, down 3.5% from a year earlier, according to NIQ, while case volume fell 5% to close 169.7 million cases. On a weekly basis, dollar sales marginally decreased, falling 1.1% to $2.1 billion from the week ended July 25th.

"The sequential decline underscores the category's ongoing challenges, as the industry looks to capitalize on remaining summer drinking occasions to help stabilize performance heading into the late-summer season," NIQ observes.

Prepared Cocktails Only Standout Performer

Only Prepared Cocktails delivered dollar growth, with sales increasing 0.2% while case volume fell 4.3%. The segment continues to benefit from strong consumer interest in convenience and flavor-forward offerings, helping it outperform the broader alcohol market.

Wine recorded the largest declines once again, with dollar sales down 4.1% and volume falling 5.5%. While category pressures persist, Wine's performance remained generally in line with broader industry trends during the latest four-week period.

Contracting distribution accounted for 25% of declines, less effective promotions, 14% anf weaker consumer engagement (61%). On a weekly basis, results showed a modest improvement, with dollar sales reaching $363.6 million, up 0.4% from the prior week. While the category has shown occasional signs of stabilization, a meaningful turnaround has yet to emerge.

During the four weeks ending Aug. 1, Still Wine remained the category's primary drag, with dollar sales down 4.7% and volume declining -5.9%. By contrast, Sparkling Wine continued to demonstrate resilience, with dollar sales slipping just 0.4% and volume down 0.9%. Meanwhile, Non-Alcoholic Wine further extended its growth streak, with dollar sales increasing 16.8% and volume rising 13.1%, reinforcing its position as the category's standout growth segment despite its relatively small size. Top 5 Manufacturers by Dollars

Spirits continued to narrow the gap with Beer, posting dollar sales declines of 3.8% and volume declines of 4.2%. After lagging Beer for much of the year, the category's recent improvement suggests Spirits, particularly Tequila, are closer to performing more in line with the industry's most resilient segments.

Across the top Spirits categories, (Vodka, Whiskey, and Tequila), performance remained mixed.

• Whiskey posted the steepest declines, with dollar sales down 4.9% and volume falling 6%, reflecting continued softness in consumer demand.
• Vodka also remained challenged, with dollar sales declining -4.2% and volume down -4.5%.
• In contrast, Tequila showed improving momentum, with dollar sales decreasing just -1.6% while volume grew +1.1%, further narrowing the gap to growth.
• Non-Alcoholic Spirits continued to be the standout performer, with dollar sales increasing +25.7% and volume rising +29.5%. Meanwhile, all other Spirits segments remained subdued, with dollar sales down -3.9% and volume declining -4.8%.

Beer lost momentum, as dollar sales were down 3.9% and volume slipped 5.2%. Although performance remains relatively stable compared with historical trends, the category continues to face the same consumption pressures impacting the broader alcohol market.

Traditional segments continued to drive category softness, led by Domestic Premium (-7.7% in value, -8.2% in volume) and Craft (-6.5% in value, -8.1% in volume). Import Beer saw comparatively milder losses (-2.9% in value, -3.8% in volume). Growth, on the other hand ,remained concentrated in select segments, Domestic Super Premium advanced, up 1.3% in dollar sales and 1.1% in volume. Cider saw gains, with value increasing 1.8% and volume up 1.3%. Non-Alc Beer continued to outperform all other Beer segments (+10.1% in value, +9.7% in volume), reinforcing its role as one of Beer’s most consistent growth engines.

In summary, NIQ said category performance remains mixed as consumers navigate a cautious spending environment. Prepared Cocktails continue to stand apart as the sole growth driver, while Spirits has recently gained ground, closing the gap with Beer and showing signs of improved stability. Wine remains challenged by ongoing demand pressures, while Beer continues to provide a relatively steady benchmark for the broader alcohol market.

State-Level Pressures Deepen, But Michigan Holds Firm. Alcohol sales underperformed year ago levels across all key markets in the latest period, with each top 10 state posting dollar and volume declines. Michigan remained the most resilient market, with dollar sales slipping -% and volume down 3.6%. By comparison, Massachusetts faced the steepest declines, with sales falling 7.8% and volume down 6.1%.

Mass Channel Near Flat. C-Stores, Club Face Pressure

Retail channel performance reflected Total US headwinds, as every major channel saw dollar losses. Convenience and Club saw the steepest decline at -3.9%, followed by Food, down -3.6%. Liquor -3.5%, and Mass -0.2% showed to be slightly stronger, while All Other was the only channel in positive standing, up +1.6%.