U.S. spirits sales fell 3.4% in the latest four weeks

U.S. spirits sales slowed again in the four weeks ending July 18, as uneven summer demand and weaker consumer spending continued to weigh on the category, according to new NielsenIQ data.

Dollar sales for spirits fell 3.4% from a year earlier in the latest four-week period, while volume declined 4.1%. NielsenIQ said slowing consumer demand and related trend pressures accounted for 94% of the category’s decline, offsetting any lift from product availability and promotions.

On a weekly basis, spirits sales were nearly flat. NielsenIQ reported $507.8 million in sales for the week ending July 18, down 0.1% from the prior week. The figures suggest that the category’s recovery has lost momentum during the summer, even though performance remains somewhat better than it was earlier this year.

The latest report points to a market that is still under pressure but not moving evenly across segments. Tequila remained one of the more stable major categories, while vodka continued to post the weakest results among the largest spirit types. Non-alcoholic spirits, though still much smaller than traditional categories, again stood out as the strongest growth area.

Vodka sales fell 4.8% in dollars and 4.9% in volume in the latest four-week period. Whiskey also weakened, with dollar sales down 2.8% and volume off 4.7%, giving back some of the gains seen in recent months. Tequila showed more resilience, with dollar sales down 2.5% and volume slipping just 0.2%.

Other spirits segments, including brandy, cognac, cordials, gin, grain alcohol and rum, remained a drag on overall performance. Combined, those categories posted a 4.1% decline in dollar sales and a 4.9% drop in volume.

The strongest contrast came from non-alcoholic spirits, where dollar sales rose 23.2% and volume increased 24.0%. The gains reflect continued consumer interest in alcohol-free alternatives at a time when many traditional spirits categories are struggling to hold volume.

Among manufacturers, Diageo remained the largest by dollar sales, but its performance weakened sharply in the period. NielsenIQ said Diageo’s dollar sales fell 9.1%, with case sales down by 133,800. Sazerac ranked second and posted one of the strongest performances among major suppliers, with dollar sales up 8.8% and case volume rising by 56,600.

Bacardi held the third spot by dollar sales, though its revenue declined 3.4% and cases fell by 23,800. Fifth Generation ranked fourth and recorded a 2.5% increase in dollar sales despite a decline of 4,000 cases. Suntory Global Spirits rounded out the top five manufacturers by dollars, with sales down 6.6% and case volume lower by 45,000.

By dollar growth, Sazerac led all major manufacturers in the period, followed by Fifth Generation. Constellation posted a 25.1% increase in dollar sales with case gains of 6,600, while Heaven Hill rose 0.8% despite losing 20,500 cases. Trinchero Family increased dollar sales by 17.0%, with case growth of about 900.

At the brand level, Tito’s Vodka remained the top-selling spirit by dollars and was one of the few leading labels to stay roughly stable. Its dollar sales edged up 0.2%, although case volume declined by 10,100. Don Julio ranked second but saw dollar sales fall 10.9%, with cases down by 16,400.

Crown Royal placed third and posted a 10.4% decline in dollar sales along with a drop of 27,400 cases. Jack Daniel’s ranked fourth, with dollar sales down 2.0% and cases lower by 6,500. Fireball completed the top five brands by dollars after a 5.7% decline in revenue and a loss of 17,200 cases.

The fastest-growing brands showed a different picture from the broader market and pointed to pockets of demand that remain active despite softer overall conditions. W.L. Weller led all brands in dollar growth with an increase of 356.3% and case gains of 21,400. Lunazul Tequila followed with dollar growth of 21.6% and an increase of 16,600 cases.

Lalo Tequila posted a 48.6% rise in dollar sales with case gains of 6,100, while Buffalo Trace increased dollar sales by 24.2% and added 11,300 cases. Svedka also appeared among the top growth brands, with dollar sales up 14.8% and case gains of 39,000.

The report covers total spirits excluding prepared cocktails and offers one of the clearest recent snapshots of how consumers are buying distilled beverages at retail this summer. The numbers show that while some premium tequila labels, bourbon brands and alcohol-free products continue to attract buyers, broad-based weakness remains across much of the U.S. spirits market as producers head into the second half of the year under continued demand pressure.