Wine sales led a broad U.S. alcohol slowdown after July 4

New NielsenIQ data released Tuesday showed that U.S. alcohol sales lost momentum in the four weeks ending July 11, with wine posting the weakest results among the major categories as spending returned to more typical levels after the July 4 holiday.

Across total alcohol, dollar sales reached $9.3 billion, down -2.6% from a year earlier, while case volume fell -4.7% to 184.2 million. On a weekly basis, sales dropped sharply from the holiday week. Dollar sales for total alcohol fell to $2.2 billion, down -17.4% from the week ending July 4, reflecting a broad slowdown after Independence Day celebrations.

Wine remained under the most pressure. In the four-week period, wine dollar sales fell -3.9% and volume declined -5.6%. NielsenIQ said the decline was driven mainly by weaker consumer interest, which accounted for 64% of the drop, along with reduced product distribution, responsible for 12%, and weaker promotional performance, responsible for 15%. Weekly wine sales also cooled after the holiday bump, falling to $360.5 million from $401.3 million the previous week, a -10.2% week-over-week decline.

Within wine, still wine continued to weigh on the category. Dollar sales for still wine dropped -4.5% and volume fell -6.0%. Sparkling wine held up better, with dollar sales slipping only -0.2% and volume down -1.5%, helped by seasonal demand tied to summer drinking occasions. Non-alcoholic wine remained one of the few bright spots in the category, with dollar sales rising +15.7% and volume up +12.0%, continuing a trend linked to health and wellness habits.

The latest figures suggest that wine’s problems go beyond a single holiday cycle. NielsenIQ pointed to weaker consumer engagement as the main issue behind the category’s instability, even as some sparkling and non-alcoholic products continue to outperform traditional table wine.

Beer also declined in the latest four-week period, though less sharply than wine. Dollar sales were down -3.2% and case volume fell -4.7%. NielsenIQ said weak consumer demand accounted for 78% of beer’s decline, while lower store availability made up another 19%. Weekly beer sales dropped to $966.7 million from $1.1 billion in the prior week, a -15.9% decline as post-holiday buying slowed.

Inside beer, core segments remained soft. Domestic premium beer posted a -7.4% decline in dollar sales and an -8.4% drop in volume, while craft beer fell -6.1% in dollars and -7.7% in volume. Import beer performed better, with dollar sales down -1.6% and volume off -2.5%. Domestic super premium beer grew +2.2% in dollars and +2.0% in volume, while cider rose +2.1% in dollars and +0.6% in volume. Non-alcoholic beer continued its strong run, with dollar sales up +11.7% and volume up +10.4%.

Spirits showed somewhat better resilience than beer and wine. In the four weeks ending July 11, spirits dollar sales slipped -2.4% and volume declined -3.4%, making it the slowest decliner among the traditional alcohol categories tracked by NielsenIQ. Weekly spirits sales fell to $508.4 million from $633.3 million in the prior week, a -19.7% drop after the holiday period.

NielsenIQ said most of spirits’ decline came from slowing consumer interest and related trend pressures, which accounted for 94% of losses, outweighing gains from product availability and promotions. Even so, spirits benefited from summer consumption patterns and viewing occasions tied to the FIFA World Cup.

Among major spirits segments, vodka remained weakest, with dollar sales down -4.5% and volume also down -4.5%. Tequila performed better, with dollar sales down -1.1% while volume edged up +0.5%. Whiskey matched tequila on dollar performance at -1.1%, though its volume fell -3.6%. American whiskey stood out within that segment, posting +2.6% growth in dollar sales while volume declined -1.3%. Non-alcoholic spirits again delivered strong gains, with dollar sales up +22.8% and volume up +22.4%.

Prepared cocktails were the only major alcohol category to post dollar growth in the latest four-week period. Sales rose +0.3%, although case volume still fell -4.8%. Weekly prepared cocktail sales dropped to $340.7 million from $449.8 million during the holiday week, a -24.0% decline, but NielsenIQ said the segment continues to benefit from convenience and strong alignment with summer drinking occasions.

Performance within ready-to-drink products varied widely by base alcohol type. Spirits-based RTDs led growth with dollar sales up +22.2% and volume up +21.9%. Wine-based cocktails also expanded, with dollar sales rising +7.5% and volume increasing +2.3%. By contrast, flavored malt beverages and seltzers remained under pressure, with dollar sales down -9.8% and volume off -11.7%.

The state-level picture was broadly weak across major markets, though some states performed better than others. Ohio had the smallest decline in dollar sales among key states at -1.4%, though its volume still fell -6.% New Jersey posted the mildest volume decline at -1.% while dollar sales there were down -2.% Illinois recorded the steepest losses on both measures, with dollar sales down -5.% and volume off -7.% NielsenIQ described the national market as fragmented, with isolated pockets of relative stability unable to offset broader softness.

Retail channels also showed widespread weakness. Convenience stores posted the largest drop in dollar sales at -3.% followed by liquor stores at -2.% food stores at -2.% mass retailers at -1.% and club stores at -0.% The only channel showing dollar growth was the “all other” group, which includes drug, military and dollar stores, up +2.% Volume trends were similar: convenience was down -6.% liquor down -5.% food down -4.% mass down -3.% while club rose +1.% and all other channels increased +5.%

Brand and supplier results reflected those broader shifts in consumer demand across categories.

In wine, Gallo remained the largest manufacturer by dollars despite a -2.% decline and a loss of 130,700 cases over the period. The Wine Group ranked second but posted a steeper drop of -10.% Deutsch Family was one of the few large suppliers to grow, with dollar sales up +3.% Josh was the top wine brand by dollars and gained +7.% while LaMarca rose +12.% Whitehaven increased +18.% Avaline climbed +42.% and Bonanza gained +24.% showing that selected brands continue to find buyers even as overall category demand weakens.

In spirits, Diageo remained No. 1 by dollars but saw sales fall -7.% Sazerac ranked second and stood out with +9.% growth along with an increase of 69,800 cases sold. Tito’s Vodka held its position as the top spirits brand by dollars with a slight gain of +0.% Don Julio fell -8.% Crown Royal dropped -8.% Jack Daniel’s slipped -1.% and Hennessy declined -3.% Among faster-growing brands, W.L. Weller surged +339.% Lunazul Tequila rose +22.% Lalo Tequila gained +49.% Buffalo Trace increased +24.% and Svedka advanced +16%

In beer, Anheuser-Busch remained the largest manufacturer by dollars despite a -3.% decline and a loss of 2..8 million cases sold over the period according to NielsenIQ data provided in rounded terms here from reported figures exceeding two million cases lost for several major brewers including Molson Coors at -.3% Constellation posted a smaller decline of -.6% New Belgium Brewing grew +5.% Modelo remained the top beer brand by dollars even as it slipped -.6% Budweiser fell -.6% Michelob gained +5.% Corona declined -.8% and Coors dropped -.1% Pacifico rose +18.% Victoria gained +18.% Peroni increased +29.% highlighting continued strength among selected import and premium labels.

Prepared cocktails showed some of the sharpest brand-level divergence in beverage alcohol retailing this summer. White Claw remained No.. 1 by dollars despite a -.9% decline, followed by Twisted Tea at -.7% High Noon Cocktail at -.5% Smirnoff at +0.% and BuzzBallz at +15.% Among growth brands, Cutwater Cocktail jumped +100.% Surfside Cocktail rose +41.% Sun Cruiser Cocktail gained +74.% and BuzzBallz continued to expand.

Taken together, NielsenIQ’s July reading points to an alcohol market that remains soft overall but uneven beneath the surface: traditional wine continues to lose ground fastest; beer is declining but supported by imports, super-premium offerings and non-alcoholic products; spirits are stabilizing relative to earlier months; and prepared cocktails remain one of the clearest areas of consumer demand during the summer season.