Champagne Revenue Rises 14.7% in a Bright Spot for U.S. Wine

Wine showed signs of improvement in the U.S. beverage alcohol market in the latest SipSource data from the Wine & Spirits Wholesalers of America, even as the broader business remained in decline through July.

The trade group said total wine and spirits volume fell 6.8% in the 12 months through July, while revenue declined 6.1%. Over the most recent three-month period, volume was down 6.2% and revenue dropped 6.1%, showing that the market is still under pressure but not moving evenly across categories.

The better news came from wine, where several segments posted growth despite the broader downturn. In the last three months, Champagne revenue rose 14.7%, Prosecco increased 10.2%, and Sauvignon Blanc was up 3.2%. The figures suggest that consumers are still willing to spend in selected wine categories, especially sparkling wines and a few established varietals, even as total alcohol purchases remain weaker than a year earlier.

WSWA’s data also showed a clear divide by price. In wine, bottles priced above $16 are performing better than lower-priced products. The strongest part of that higher-end business was the $50+ segment, which edged up 0.9% in revenue over the past 12 months. That points to some continued resilience at the top of the market, where buyers appear to be holding on longer than consumers in entry-level and midpriced tiers.

The pattern in spirits was weaker. Over the latest three months, spirits volume fell 5.7% and revenue declined 7.1%, a softer result than the month before. WSWA said the widening gap between volume and revenue shows continued pressure on premiumization, as consumers place more focus on value and become less willing to trade up. In practical terms, the industry is selling fewer cases, and the money coming in is falling even faster.

That shift was visible across all spirits price levels. WSWA said every spirits tier is now down more than 5% in revenue. The $50-$99.99 segment fell 9.5%, while all spirits priced above $50 declined 8.9%. Those numbers indicate that the slowdown is no longer limited to lower-priced products and that higher-end spirits, which had provided support for revenue in past years, are now weakening as well.

One area that held up better was the on-premise business, meaning bars and restaurants. Total wine and spirits on-premise volume declined 2.8% over the latest 12 months, compared with a 7.5% drop in the off-premise channel, which includes retail stores and other take-home purchases. The gap suggests consumers are still showing some willingness to spend when drinking out, even as retail buying remains more subdued.

The latest readings add to a picture that has been developing across the alcohol market for much of the past year. Overall demand remains below year-earlier levels, but the losses are not spread evenly. Wine is showing isolated areas of strength, especially in sparkling categories and in some higher-priced bottles, while spirits are facing broader weakness and more visible pressure on premium sales.

For wholesalers, suppliers, and retailers, the data highlight a market in which category mix matters more than simple volume. Segments tied to celebration and dining occasions are performing better than the market as a whole, while products that depend on consumers consistently paying more are facing greater resistance. The report suggests that value concerns remain central to buying decisions, but it also shows that some consumers are still spending in categories they see as distinct or worth the extra cost.

The figures were released by WSWA through SipSource, the group’s data tracker, and reflect sales trends through July. While the overall market remains negative on both volume and revenue, the latest numbers show wine narrowing some of the damage through gains in Champagne, Prosecco, Sauvignon Blanc, and bottles above $16, while spirits continue to lose ground across both mainstream and premium price bands.