WSWA Sees Market Growing Stronger In Second Half

The Wine & Spirits Wholesalers of America (WSWA) released its SipSource mid-year report, detailing trends in the industry from July 2022 through June 2023. The data show spirits and wine depletions down a combined 3.8% in the 12-month window, slipping 1.4% and 6% respectively. The first half of 2023 was worse, however, as spirits fell 4.2% and wine declined 7%. SipSource analysts attribute these losses to tough comps in 2022 and the influence of inflation on consumer spending habits. These trends are expected to improve in the back half of the year due to both moderating inflation rates and easier comps.

In other findings, Italy and Spain are taking increasing share of the sparkling wine category. “Prosecco continues to be a growth standout, while Cava is also performing well,” said SipSource analyst Danny Brager. “On the other side, Champagne is down almost -11%.”

Pre-mixed cocktails continue to dominate growth in spirits, having grown from only 3% of total spirits volume as recently as 2019 to today account for 13.5% of total spirits volume, second only to vodka and ahead of American whiskey and Tequila. Of those RTDs, 75% are canned. Analysis of the effect of RTDs on traditional spirits categories is ongoing. “According to NielsenIQ scan data, vodka is the base for 60% of spirit-based RTDs, so it’s natural to infer that RTD sales have an impact on the traditional vodka segment. Tequila is the second-largest base liquid for pre-mixed cocktails, representing 20% of the segment,” said Brager.—Danny Sullivan

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