U.S. spirits sales fell 3.2% in the four weeks through Aug. 15

U.S. spirits sales declined in the four weeks ending Aug. 15 as summer drinking occasions eased and shoppers remained cautious, according to NielsenIQ’s latest Full View: U.S. Spirits Pulse report.

The report found that dollar sales for spirits fell 3.2% from a year earlier, while volume dropped 3.5%. NielsenIQ said weaker consumer engagement and continued pressure on household budgets drove most of the decline, accounting for 90% of the downturn during the period. Those factors outweighed support from strong product availability and promotional activity at retail. On a week-to-week basis, spirits sales reached $505.5 million in the week ending Aug. 15, down 0.7% from the previous week ending Aug. 8.

The new figures suggest the category is entering late summer on soft footing as retailers and producers look ahead to Labor Day for a possible increase in demand. NielsenIQ said the usual lift from summer occasions has started to fade, leaving the market to rely on upcoming holiday and social events for its next stronger sales period.

Performance varied across the largest spirits categories. Whiskey posted the weakest results among vodka, whiskey and tequila, with dollar sales down 5.1% and volume off 5.9%. Vodka also declined, though by a smaller margin, with dollar sales down 3.2% and volume lower by 3.6%. Tequila continued to outperform the other major categories. Its dollar sales were nearly flat, down 0.3%, while volume increased 2.5%.

The report also showed continued growth in non-alcoholic spirits, a smaller but expanding segment of the market. Dollar sales in that category rose 22.5%, and volume increased 25.0% during the four-week period. Other spirits categories grouped together by NielsenIQ, including brandy, cognac, cordials, gin, grain alcohol and rum, posted a 2.9% drop in dollar sales and a 3.9% decline in volume.

Among manufacturers, Diageo remained the largest by dollar sales, even as its sales fell 6.8% and case volume declined by 88,500 cases. Sazerac ranked second and was one of the strongest performers among the largest suppliers, with dollar sales up 4.0% and case volume up 41,100. Bacardi held the third spot, with dollar sales down 0.4% and cases down 8,400. Fifth Generation ranked fourth and posted a 4.5% gain in dollar sales along with an increase of 8,100 cases. Suntory Global Spirits rounded out the top five manufacturers by dollar sales, with dollars down 6.3% and case volume down 45,100.

When measured by dollar growth rather than size, Sazerac and Fifth Generation also ranked near the top, joined by Constellation, Campari America and Heaven Hill. Constellation posted the largest percentage gain among that group, with dollar sales up 26.1% and case volume up 6,500. Campari America’s dollar sales increased 1.3% with case gains of 1,900. Heaven Hill recorded dollar growth of 0.9% even as its case volume fell by 21,500, indicating that revenue gains did not always align with volume growth during the period.

At the brand level, Tito’s Vodka led all spirits brands by dollar sales and was also one of the few top brands to post growth. Its dollar sales rose 2.2%, and case volume increased by 2,300. Crown Royal ranked second by dollar sales, but its sales fell 9.7% and case volume dropped by 22,300. Don Julio placed third, with dollar sales down 5.1% and case volume off 5,300. Jack Daniel’s followed, with dollar sales down 5.7% and cases down 14,600. Fireball Whiskey ranked fifth, with dollar sales down 5.8% and case volume lower by 16,900.

The fastest-growing brands in dollar terms were led by W.L. Weller, which posted a 103.9% increase in dollar sales and added 10,600 cases. Several tequila brands also showed strong momentum. Lunazul Tequila’s dollar sales rose 23.9%, with case volume up 17,400. Lalo Tequila increased 49.9% in dollar sales and added 5,800 cases. Cazadores rose 27.1% in dollar sales and gained 12,700 cases. Svedka also made the top five for dollar growth, with sales up 14.4% and case volume rising by 32,800.

The NielsenIQ report covers total spirits excluding prepared cocktails and is based on its retail measurement and business drivers data for the four weeks ended Aug. 15. Its broader “all other” spirits grouping includes brandy, cognac, cordials, gin, grain alcohol and rum.