On-Premise Resilient, Boosted By Tequila, Bourbon: WSWA

While total spirits and wine depletions fell 3.6% and 7.5% respectively in the U.S. last year, according to the Wine & Spirits Wholesalers of America (WSWA), the resilience of the on-premise has been a bright spot for the industry lately, with spirits growing 2.8% on-premise in 2023.

Reposado Tequilas (+7.2%) and Bourbon (+4.3%) have fueled on-premise spirits gains. “Three product categories stick out as having shown sustained long-term strength which continued in 2023: Premixed Cocktails, up +6.3%, Tequila/Agave Spirits, up +1.5%, and Prosecco, up +5.3%,” WSWA said, adding that the holiday season also saw “significantly improved trends on Cognac” following the category’s recent declines.

Still, overall data for 2023 pointed to inflation as taking a toll on consumer spending during the year. “Trends for the combined price segments of Traditional Spirits over $25.00, Table Wine over $15.00, and Sparkling Wine over $18.00, lost 650 basis-points of trend compared to 200 basis-points for products under those price points,” it was noted. “The most impacted segments are Spirits over $100, down -12.5% and Sparkling Wine over $75.00, down -23.3%.”—Daniel Marsteller

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