Ready-to-drink cocktails buoy U.S. alcohol sales

Ready-to-drink cocktails continued to cushion the U.S. beverage alcohol market in retail channels even as wine and spirits sales weakened in the four weeks ended April 25, according to NielsenIQ data cited by Shanken News Daily.

Total beverage alcohol sales fell 3.3% from a year earlier to $8.2 billion in NielsenIQ-tracked channels. Wine dollar sales dropped 5.6%, while volume declined 6.7%. Spirits sales fell 5.8% by value and 5.1% by volume. RTDs were one of the few bright spots, with dollar sales rising 3% over the period, though case volume slipped 1.7% in the month leading up to April 25.

The data suggest that RTDs made with wine or spirits are outperforming flavored malt beverages, posting double-digit gains in value. That strength has helped offset some of the pressure facing traditional categories as consumers remain selective and price sensitive.

Among spirits, whiskey had the steepest decline, with sales down 6.5% by value and 6.7% by volume. Vodka fell 5% in value and 4.6% in volume, while tequila declined 4.8% and 1.5%, respectively. NielsenIQ’s “All Other” spirits segment also weakened, driven by lower sales of brandy and Cognac.

Nonalcoholic spirits, still a small part of the market, continued to grow quickly. Volume rose nearly 53%, while value increased 33.5%, showing that some shoppers are still willing to try alternatives even as overall alcohol spending softens.

Performance among major spirits suppliers was mixed. Diageo, the largest supplier by dollar sales, saw revenue fall more than 10%. Sazerac posted a 2.4% gain. Bacardi declined 5.1%, and Suntory fell 7.9%. Fifth Generation, which owns Tito’s vodka and Lalo Tequila, reported a 2.4% increase.

Wine remained under pressure across most segments, with table wine leading the declines. Sparkling wine, which has often been a relative bright spot for the category, also lost ground, falling 3.8% by value and 4.6% by volume. All five of the leading U.S. wine companies tracked in the data — Gallo, The Wine Group, Deutsch, Trinchero and Delicato — posted lower dollar sales.

State-level results were uneven. Ohio and New Jersey both recorded single-digit volume growth during the period, while Michigan remained close to flat despite still showing declines, with dollar sales down just 0.4%.