WSWA: Drinks Market “Normalizing” After Three-Year Disruption
February 22, 2023After a three-year period of upheaval characterized by the pandemic, supply chain issues, geopolitical tensions, and uneven economic conditions, the U.S. drinks market is in the process of “normalizing,” according to the Wine & Spirits Wholesalers of America’s SipSource tracker.
Total spirits and wine depletions slipped 2.9% in 2022, WSWA reports. But the average growth rate over the past four years looks brighter, with total depletions roughly flat, including a 4.2% gain for spirits and a 3.9% decline for wine. Still, premiumization appears to have slowed some in spirits, WSWA says. Tequila and Bourbon over the $50 price point grew 18.8% and 16.8% respectively last year, but overall spirits priced over $25 were essentially flat.
Among other trends wholesalers are watching is progress in the on-premise, which WSWA says is now registering depletions at 95% of pre-pandemic levels for spirits and 90% for wine. The impact of inflation on disposable incomes has lately held back the on-trade from achieving a full recovery, however. While wine showed solid performance above $15 a bottle during the holidays, WSWA added, the category is expected to continue to see challenges this year. In spirits, in addition to American whiskies and Tequila, flavored whiskies have been a growth driver, with depletions up 4% last year.—Daniel Marsteller
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