Wine and spirits sales continue to decline, dropping 6% in the year through August 2024, according to data from the Wine and Spirits Wholesalers of America (WSWA).

The data shows that, following a trend that has accelerated post-Covid, wine sales have plummeted by 8% during that 12-month time frame, while spirits sales from wholesalers to retailers dropped by 3.9%.

WSWA’s SipSource asserts that broadening consumption trends are concerning.

“One fewer shipping day in August contributed to the decline,” Dale Stratton, SipSource analyst, said in the report, “but it doesn’t fully explain the larger systemic issues we’re seeing in both on- and off-premise channels.”

Another concern Stratton cited is the decline in sales of premium spirits. He cited that the premium segment was previously a growth driver, but that the $100-plus tier in spirits in bars and restaurants showed the steepest fall-off, declining 12.5%. For mid-range spirits, in the $50-$99.99 range, declined 3.9% on-premise.

“For off-premise—where over 80% of consumer market volume lies—the $100-plus tier fell by -8.5%, while the $50-$99.99 tier dropped 4.3%,” Stratton said.

Meanwhile, the $8-$10.99 table wine segment sales dropped by 12.7% across combined on- and off-premise channels. Stratton cited changing consumption patterns, economic and inflationary pressures, and reduced shelf space as contributing factors.

However, Prosecco continued to perform well, up more than 2%, while the $50+ wine segment increased by 1% over the past six months. Domestic wine sales in this tier rose nearly 3% in that time frame.

Michael Bilello, WSWA Executive Vice President and Director of SipSource, said in the report that SipSource’s proprietary model, in specific categories and price points, has shown in 2024 to be 90% accurate.

About WSWA’s SipSource

WSWA’s SipSource is a source for wine and spirits trends and market share insights based on aggregated distributor depletion data. Representing over 60% of wholesale products by volume across all 50 states, with more than 150,000 product SKUs, from over 450,000 outlets, SipSource data is exclusively sourced from America’s family-owned wine and spirits wholesalers. This verified, primary-source data is never shared or sold to third-party providers. Built on detailed, single-product transactions from wholesalers to retailers, SipSource covers hundreds of thousands of outlets. Its data set delivers both reliable historical trends and forward-looking forecasting capabilities.

(Photo by MiBryant/Pixabay.com)