WSWA Sees On-Premise Lagging In Recent Months
November 21, 2024The wine and spirits market will continue to face challenging conditions over the next 12 months, according to projections from WSWA’s SipSource data and analytics bureau. In a new report covering Q3 2024, the group notes that while pockets of premiumization remain, performance has been hit-or-miss, depending on category. “These Q3 results continue to support the forward-looking projections in which we predict core spirits will continue to face significant headwinds over the next 12 months,” WSWA noted.
While RTDs and Tequilas continue to show growth, “Tequila/Agave and Brandy/Cognac revenue trends are struggling to keep pace with volume changes,” WSWA said. On the other hand, vodka, American whiskey, and gin continue to premiumize. In wine, the group’s report says that $50+ domestic wines are seeing upside while $8-$12 bottles are struggling.
Inflation appears to be taking a toll on the on-premise lately, WSWA added, saying, “Notably, on-premise performance has recently lagged behind off-premise, likely due to higher inflation in the on-premise sector.”—Shane English
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