U.S. alcohol market under pressure – NielsenIQ data
NielsenIQ data shows continued weakness in the U.S. alcohol market, with declines across wine, spirits and beer, despite brief weekly sales rebounds driven by seasonal demand.
USA – The U.S. alcohol industry remained under sustained pressure in the four weeks ended May 9, with NielsenIQ reporting a broad decline in both value and volume across major beverage categories.
Total dollar sales fell 6.0% year-on-year to $8.1 billion, while case volume dropped 7.0% to 159.1 million cases, reflecting continued weakness in consumer demand.
Although weekly dollar sales rose 2.8% to $2.1 billion in the most recent week, NielsenIQ said the improvement was temporary and largely driven by warmer weather conditions and seasonal events such as Cinco de Mayo rather than a structural recovery.
Prepared cocktails, once a key growth segment, continued to weaken. Dollar sales fell 1.4% over the four-week period, while case volume declined 6.2%. Spirits-based ready-to-drink products recorded gains, but these were offset by sharp declines in flavored malt beverages and seltzers, which fell 10.3% in dollar sales and 12.2% in volume.
Wine remained the weakest-performing major category. Dollar sales declined 8.5%, with volume down 8.9% over the four-week period. Sparkling wine saw the steepest losses, falling 12.8% in dollar sales and 15.3% in volume, while still wine also declined. Nonalcoholic wine, however, continued to grow, partially offsetting category losses.
Spirits also remained under pressure, with dollar sales down 6.5% and case volume falling 5.8%. Whiskey, tequila and vodka all recorded declines, while nonalcoholic spirits emerged as a bright spot, rising 26.6% in dollar sales and 43.0% in volume.
Beer performed relatively better but still recorded year-on-year declines. Dollar sales fell 5.9%, while volume dropped 7.0%. Domestic premium, craft and import segments all weakened, and cider also returned to negative territory after prior gains.
Within distribution channels, declines were widespread. Liquor stores and food channels each fell 6.4%, followed by mass merchants at 6.0%, convenience stores at 5.3%, club stores at 4.5% and other channels at 5.0%.
In spirits, Diageo remained the largest manufacturer but posted a 12.0% decline. Sazerac was among the few major companies to grow, up 2.8%, followed by Fifth Generation at 1.1%. Tito’s Vodka remained the top-selling brand by dollar value but declined 1.2%, while Crown Royal, Don Julio, Jack Daniel’s and Fireball all posted losses.
Wine leader Gallo also declined 7.8%, while The Wine Group fell 13.2%. In beer, major producers including Anheuser-Busch, Constellation Brands, Molson Coors and Heineken USA all recorded declines, with New Belgium Brewing among the few to post growth.
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