WSWA: Pockets Of Growth Amid A Challenged Market

Wine and spirits depletions declined 6% in the 12 months through August, according to the Wine & Spirits Wholesalers of America’s (WSWA) SipSource data tracker. Wine depletions fell 8%, while spirits were down 3.9%, according to the data, which tracks sales from wholesalers to over 450,000 retailers nationwide.

“Premiumization, once a major growth driver, is facing pressure in a tightening market,” noted SipSource analyst Dale Stratton. “The $100+ price tier in spirits within bars and restaurants performed the worst, declining 12.5%, while mid-range tiers, such as $50- $99.99, saw a more moderate decline of 3.9% in on-premise depletions.” In the off-premise, comprising 80% of market volume, the $100+ tier dipped by 8.5%, while the $50-$99.99 tier decreased 4.3%.

In wine, The $8-$10.99 table wine price tier declined by 12.7% across combined on- and off-premise channels in the 12-month period. Still, there remain pockets of growth, such as Prosecco, up 2%, and $50+ table wines, which grew 1% in the past six months, led by a 3% increase for domestic bottlings. “This is a promising sign heading into the critical O-N-D period, offering hope that consumers in higher price tiers are still willing and able to spend,” noted analyst Danny Brager.—Daniel Marsteller

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