Destocking Situation Likely To Improve In The Coming Months

Destocking at the retail level has been holding back depletion trends in both wine and spirits over the past year. While high interest rates continue to pressure inventory levels, as 2024 rolls on the situation could start to rebalance, according to the Wine & Spirits Wholesalers of America (WSWA).

That could help improve depletion numbers moving forward, after the 12 months through March showed spirits down 2.7% and wine down 8.3%, according to the WSWA. Trends have worsened over the first three months of this year, with spirits off by 5.2% and wine slipping 10.9%.

From a category standpoint, premixed cocktails continue to thrive, increasing 6.6% over the past 12 months, including a 24.6% surge in the on-premise. Tequila and other agave spirits also remain on the rise at +1.5%, led by 10.8% growth for Reposado expressions. In wine, Prosecco is outperforming, with depletions up 3.5% over the past year. —Daniel Marsteller

Tagged : WSWA

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