U.S. wine sales fell 3.9% through mid-July as consumer demand stayed weak

Wine sales in the United States remained under pressure through mid-July, with NielsenIQ data showing the category still struggling to regain momentum as fewer products reached shelves and consumer demand stayed soft.

In the four weeks ending July 18, wine dollar sales fell 3.9% from a year earlier and volume dropped 5.6%, according to NielsenIQ’s July wine market update. The firm said 23% of the category’s decline was tied to reduced distribution, a larger share than in recent periods. Softer promotions accounted for 14% of the weakness, while lower consumer interest made up 63%. On a week-to-week basis, wine sales were nearly flat, totaling $357.6 million, down 0.8% from the prior week.

The figures point to a market that is no longer worsening at the same pace seen earlier this year, but is still not finding a clear path to growth. Still wine remained the main drag on the category, with dollar sales down 4.5% and volume off 6.1% in the latest four-week period. Sparkling wine held up better, with dollar sales slipping just 0.1% and volume down 0.8%. Non-alcoholic wine continued to stand out as the strongest segment in the category, with dollar sales rising 16.5% and volume up 12.6%.

The broader alcohol market also cooled after early summer demand drivers faded. NielsenIQ reported that total alcohol sales reached $9.1 billion in the four weeks ending July 18, down 3.0% from a year earlier, while case volume fell 4.8% to 181.9 million cases. Weekly dollar sales for total alcohol came to $2.1 billion, down 3.1% from the week ending July 11. The slowdown followed the end of Independence Day celebrations and the FIFA World Cup period, two events that had supported seasonal demand.

Among major alcohol categories, prepared cocktails remained the only clear growth engine. Dollar sales for prepared cocktails rose 0.2%, even as case volume declined 4.8%. NielsenIQ said spirits-based ready-to-drink products were driving much of that strength, posting dollar growth of 21.6% and volume growth of 21.5%. Wine-based cocktails also advanced, with sales up 7.3% and volume up 2.3%. By contrast, flavored malt beverages and seltzers continued to weaken, with dollar sales down 9.8% and volume off 11.7%.

Beer and spirits both posted declines similar to wine, though wine remained the weakest major segment in the latest reading. Beer dollar sales fell 3.4% and case volume dropped 4.8%. Spirits also saw dollar sales decline 3.4%, with volume down 4.1%. NielsenIQ said spirits lost some of the momentum it had shown in recent weeks once holiday and sports-related demand eased.

Within spirits, tequila showed more resilience than vodka or whiskey. Tequila dollar sales were down 2.5%, while volume slipped just 0.2%. Vodka posted weaker results, with dollar sales down 4.8% and volume off 4.9%. Whiskey sales fell 2.8% and volume declined 4.7%. Non-alcoholic spirits again outperformed traditional segments, with dollar sales up 23.2% and volume rising 24.0%.

Beer showed a similar split between weaker core segments and stronger premium or non-alcoholic products. NielsenIQ said domestic super premium beer posted dollar growth of 2.2% and volume growth of 2.0%, while cider rose 1.6% in dollars and 0.2% in volume. Non-alcoholic beer gained 11.2% in dollar sales and 10.5% in volume, extending one of the strongest trends in beverage alcohol retail this year.

The state-by-state picture remained uneven, though every major market tracked by NielsenIQ posted declines in both dollars and volume for total alcohol sales. Michigan was the strongest-performing large market, with dollar sales down just 0.7% and volume off 3.6%. Florida also showed relative resilience, with dollar sales down 1.9% and volume declining 2.6%. New York recorded the steepest dollar decline among key states at 6.1%, while Massachusetts had the sharpest volume drop at 7.8%.

Retail channels were broadly weak as well. Club stores posted the largest dollar decline at 4.1%, followed by convenience stores and liquor stores, both down 3.5%. Food stores performed somewhat better, with dollar sales down 2.4%, while mass retail was down 1.5%. The only channel to post growth was the group NielsenIQ classifies as “all other,” which includes drug, military and dollar stores; that segment rose 3.0% in dollars and 5.0% in volume.

In wine specifically, large suppliers continued to face mixed results despite overall category weakness. Gallo remained the top manufacturer by dollar sales, though its wine revenue fell 2.9% and case sales declined by about 134,800 cases in the period measured by NielsenIQ retail data through July 18. The Wine Group ranked second but posted a steeper drop, with dollar sales down 10.8%. Deutsch Family was one of the few major suppliers to grow, with dollar sales up 3.2%.

At the brand level, Josh held the top spot by dollars among wines tracked in the report and grew 7.4%, adding roughly 32,800 cases. Barefoot ranked second but saw dollar sales fall 4.7%. LaMarca continued to gain ground with a 12.3% increase in dollars and nearly 21,900 additional cases sold, reflecting continued consumer interest in sparkling wine even as still wine remains weak.

The same divide appeared across other beverage categories where non-alcoholic products are gaining share while many traditional segments contract. In spirits, non-alcoholic offerings rose more than 23% in dollars; in beer they climbed more than 11%; and in wine they advanced more than 16%. That pattern suggests that one of the clearest areas of consumer spending growth in beverage alcohol retail is now coming from products without alcohol.

For producers, distributors and retailers, the latest NielsenIQ data shows a summer market shaped less by broad recovery than by selective pockets of resilience. Sparkling wine is holding steadier than still wine, non-alcoholic products continue to expand across categories, and prepared cocktails remain one of the few places where consumers are still delivering top-line growth even as overall volumes fall across much of the industry.