U.S. wine and spirits sales posted a third straight month of slower declines in June.

New data from the Wine & Spirits Wholesalers of America showed Thursday that U.S. wine and spirits sales remained below year-earlier levels in the second quarter of 2026, but the pace of decline eased for the third straight month, a sign that the beverage alcohol market may be moving toward a more stable footing after a long slowdown.

The figures came from SipSource, the group’s data platform that tracks distributor depletion trends across the United States. In industry terms, depletion data measures the movement of cases from wholesalers to retailers and restaurants, making it one of the clearest real-time indicators of demand in the market.

WSWA said both wine and spirits continued to post year-over-year declines in the quarter. But the monthly trend improved steadily through the period, narrowing again by the end of June. That pattern matters for producers, distributors and retailers because it suggests that the market is no longer weakening at the same rate seen earlier in the year.

The report adds to a picture that has been forming across the drinks business for months. Suppliers and wholesalers have been contending with softer consumer demand, tighter household budgets and more cautious ordering from retailers. Restaurants and bars have also been working through uneven traffic and higher operating costs, while many consumers have traded down, bought fewer bottles or shifted more of their spending away from alcohol.

Wine has been under particular pressure. The category has struggled with weaker demand from younger legal-age drinkers, slower sales in supermarkets and a broader reset after pandemic-era buying patterns faded. Premium wines have held up better in some parts of the market, especially in on-premise settings and among established collectors, but the larger volume business has remained difficult. Brands that depend heavily on grocery and chain retail have faced a more price-sensitive shopper, and many wholesalers have reported slower replenishment orders.

Spirits, while generally more resilient over the past several years, have also lost momentum. The category benefited during and after the pandemic from strong consumer interest in tequila, American whiskey and higher-end cocktail culture. More recently, that growth has cooled as consumers have become more selective and as price increases have met resistance. Some suppliers have continued to gain share in specific segments, but the broader spirits business has not been immune to the same pressures affecting wine.

The fact that declines narrowed for three straight months does not mean the market has returned to expansion. It means sales are still falling, but not as sharply. For wholesalers, that distinction is important. A slower rate of decline can help with inventory planning, staffing decisions and purchasing forecasts, especially ahead of the important fall selling season. It can also provide some relief for producers that have spent much of the past two years facing order cuts, delayed reorders and rising discount pressure.

SipSource data is closely watched because it reflects activity across the three-tier system at a point where product is leaving distributors and heading into stores, restaurants and bars. That makes it more useful than shipment data alone in understanding what consumers are actually pulling through the market. When depletion trends weaken, wineries and distilleries often respond by adjusting production, delaying package changes, reducing new launches or putting more emphasis on promotions.

The second quarter is a meaningful period for the business. Spring and early summer typically bring outdoor occasions, holiday gatherings and travel-related spending that can lift sales in categories tied to entertaining. When the market is soft even during that stretch, it raises concern about the rest of the year. A narrowing decline, however, gives the trade a more measured view. It suggests some categories may be finding a floor, even if that floor is still below prior-year levels.

Industry executives have been looking for that kind of stabilization since late 2025. The beverage alcohol sector has been moving through a broad adjustment after several years of unusual volatility. First came the surge in at-home buying during the pandemic. Then came normalization, inflation, higher interest rates and a pullback in discretionary spending. More recently, the market has had to absorb changing habits among younger consumers, including moderation, health concerns and rising interest in alcohol-free options.

Tourism and hospitality patterns have also played a role. In major food-and-wine destinations, restaurants have reported that guests are still dining out, but often with more restraint on the beverage side. Diners may order one bottle instead of two, choose by-the-glass programs over full-bottle purchases or move from prestige labels to less expensive alternatives. That behavior affects both wine and spirits, especially in urban markets where on-premise sales carry higher margins and often shape brand image.

For wineries, especially those in California, Oregon and Washington, the slower pace of decline may offer limited encouragement during a difficult selling environment. Many have faced pressure from excess inventory, weaker direct-to-consumer shipping growth and slower distributor reorders. Smaller brands with narrow distribution have been especially exposed, since they often depend on a handful of wholesalers and key restaurant placements to maintain volume.

Distillers are dealing with a somewhat different set of issues. Larger spirits suppliers have more pricing power and broader portfolios, which can help offset weakness in any one segment. But independent distilleries and smaller premium brands have felt the effects of slower retail turns and a tougher fundraising climate. When distributors become more cautious, newer brands often find it harder to win attention, secure placements or maintain shelf space.

The WSWA report is likely to feed into discussions that will shape pricing and allocation decisions for the second half of the year. If the trend of narrower declines continues, some suppliers may choose to hold pricing more firmly and reduce the level of discounting that has crept into the market. If the slowdown deepens again, more aggressive promotions could return, especially in segments with heavy inventories or intense competition.

Retailers will also be watching closely. Wine shops, chains and grocery buyers have spent much of the past year trying to balance conservative ordering with the need to stay in stock on proven labels. A more stable depletion picture could encourage some of them to modestly rebuild inventories before the year-end holidays, though many are still expected to favor familiar brands, sharp pricing and products with clear value.

For now, the message from SipSource is more about direction than recovery. The wine and spirits business in the United States remains in contraction, but the latest quarter showed that the pressure eased month by month. In a market that has spent a long stretch absorbing weaker demand, that is enough to keep wholesalers, producers and retailers looking for more evidence in the months ahead.