Retail Destocking Weighing Down Depletions, WSWA Says

Ongoing destocking in the retail segment is holding back wholesale depletions of wine and spirits, according to the Wine & Spirits Wholesalers of America (WSWA), with spirits depletions slipping 2.2% and wine down 8.2% in the 12 months through February. The decline accelerated slightly in the latest three months, with spirits falling 3.3% and wine off by 8.6%. The months of March and April are expected to show better results, against easier comps from last year.

On-premise depletions have largely normalized, WSWA adds, with combined volume for wine and spirits down 2% through February, aided by 0.9% growth in the spirits category. That compares with a 5.9% decline for combined wine and spirits off-premise. The high interest rate environment makes it unlikely that retailers will look to build back inventories in the near term, with wholesalers eyeing improved consumer pull as the route to better depletion trends moving forward.—Daniel Marsteller

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