Bars and Restaurants Outpace Retail in U.S. Wine and Spirits Slump

Bars and restaurants are holding up better than retail stores in the U.S. wine and spirits market, even as the broader industry remains in decline, according to new data released Monday by SipSource, the data arm of the Wine & Spirits Wholesalers of America.

SipSource said total wine and spirits sales fell 6.7% by volume and 5.8% by value over the last 12 months. Over the last three months, sales were still negative, but the pace of decline eased to 6.1% by volume and 5.3% by value, suggesting some modest improvement in the overall trend.

The stronger showing came from the on-premise channel, which includes bars and restaurants. SipSource said on-premise sales were down only 2.4% by both volume and value over the last 12 months. That was a much smaller decline than in the off-premise channel, which includes retail outlets such as liquor stores and supermarkets.

WSWA said the off-premise posted steeper declines of 7.5% and 6.7% over the same period, although the report summary did not clearly identify which figure referred to volume and which referred to value. Even with that ambiguity, the direction was clear: retail sales weakened more than sales in restaurants and bars.

The pricing data also pointed to a split market, especially in wine. SipSource said wines priced below $16 continue to struggle, while higher-priced labels have been more stable. The clearest area of resilience was the $20-$30 segment, where wine revenue rose 0.9% over the last year.

Some wine categories also showed better recent momentum. SipSource said Champagne, Sauvignon Blanc and Prosecco all recorded value growth over the last three months. That suggests that while the broader wine market remains under pressure, consumers are still spending in selected categories and price bands.

In spirits, SipSource said the move away from premiumization is continuing. Consumers appear to be pulling back from luxury bottles and concentrating more of their spending in the middle of the market. The $20-$30 segment was described as holding firm, while higher-end products faced more resistance.

The pricing breakdown in spirits was especially stark. SipSource said 61% of spirits sales by volume come from brands priced below $20 a bottle. Only 6.5% comes from products priced at $50 or more. Those figures indicate how concentrated demand has become in the lower and middle parts of the market as buyers look for value.

The latest figures matter beyond a single sales report because they point to where demand is proving more durable across the beverage business. For wineries, distillers, importers and distributors, the gap between on-premise and off-premise performance could affect how they manage pricing, promotions and inventory. The same is true for product mix. If consumers continue to favor the $20-$30 range and avoid both entry-level weak spots and luxury offerings, suppliers may need to adjust how they position wines and spirits by channel.

The data also add to a broader picture of uneven demand in alcohol. Rather than a uniform slowdown, SipSource’s numbers show a market where results vary by outlet, by category and by price point. In that environment, producers and wholesalers are likely to watch closely whether the recent strength in bars and restaurants, along with pockets of resilience in Champagne, Sauvignon Blanc, Prosecco and mid-priced spirits, can continue through the coming months.