Prepared cocktails became the only major alcohol segment to post sales growth in mid-October

U.S. alcohol sales remained under pressure in the four weeks ending October 17, with prepared cocktails again standing out as the only major segment to post dollar growth, according to NielsenIQ retail measurement data.

NielsenIQ said total alcohol dollar sales reached $8.1 billion during the period, down -2.4% from a year earlier. Case volume totaled 155.5 million, down -4.4%. On a weekly basis, dollar sales were $2.0 billion, down -0.9% from the week ending October 10, showing that the modest improvement seen earlier in October did not hold through midmonth.

The broad pattern across the industry was a continued split between newer convenience-focused products and the traditional core categories. Prepared cocktails within beer, wine and spirits rose +1.8% in dollar sales over the four-week period, even as volume fell -2.2%. Beer sales dropped -3.3% in dollars and -5.0% in volume. Wine also fell -3.3% in dollars and -4.9% in volume. Spirits were comparatively steadier, but still declined -2.4% in dollars and -2.3% in volume.

The report suggests consumers are still pulling back on alcohol purchases overall, with price and product mix helping support dollar sales more than underlying demand. That pattern was especially clear in beer, where volume losses outpaced dollar declines, and in wine, where both measures moved down at nearly the same rate, pointing to limited pricing support.

Beer remained the largest source of industry weakness. NielsenIQ said weekly beer dollar sales totaled $856.0 million in the latest week, down -2.3% from $876.5 million a week earlier. Over the four-week period, softer consumer interest accounted for 76% of beer’s decline, while distribution losses made up 22%. Domestic Premium posted some of the steepest losses, with dollar sales down -7.3% and volume down -8.4%. Craft beer fell -4.9% in dollars and -6.5% in volume. Imports were also lower, though by a smaller margin, with dollar sales down -1.6% and volume down -3.2%.

Some smaller beer segments continued to grow. Domestic Super Premium dollar sales were up +0.4%, though volume slipped -0.1%. Cider strengthened, with dollar sales up +5.4% and volume up +3.9%. Non-alcoholic beer also gained ground, rising +7.3% in dollars and +6.4% in volume. Among major brands, Modelo remained the top beer brand by dollars despite a -0.8% decline. Michelob posted a +3.3% gain, while Pacifico was among the fastest-growing brands with dollar sales up +22.7%.

Wine showed a slightly better weekly trend but remained weak overall. Weekly wine dollar sales reached $368.6 million, up +0.2% from the prior week. NielsenIQ said weaker consumer engagement was the biggest factor behind wine’s four-week decline, accounting for 47% of the drop. Reduced product availability contributed 31%, while underperforming promotions represented 22%, a larger share than in the previous week. Still wine continued to weigh on the category, with dollar sales down -4.0% and volume down -5.3%.

The brighter spots in wine were smaller but growing segments. Sparkling wine posted dollar growth of +1.1%, though volume edged down -0.3%. Non-alcoholic wine rose +19.2% in dollars and +16.0% in volume. Among large wine brands, Josh increased +7.8% in dollar sales, Barefoot rose +1.2%, and La Marca gained +14.7%.

Spirits remained more resilient than beer and wine and showed a modest week-to-week increase heading into seasonal gatherings. Weekly spirits dollar sales reached $512.8 million, up +1.1% from the prior week. Over the four weeks ending October 17, NielsenIQ said softer demand and broader economic headwinds accounted for 89% of the category’s decline. The results within spirits were mixed. Whiskey losses deepened to -4.7% in dollars and -5.2% in volume. Vodka fell -1.3% in dollars and -2.1% in volume. Tequila continued to post growth in dollars, up +0.7%, while volume climbed +5.0%. Non-alcoholic spirits expanded even faster, with dollar sales up +20.5% and volume up +20.9%.

Manufacturer and brand performance in spirits showed the same uneven picture. Diageo remained the largest manufacturer by dollar sales, but its sales were down -6.6%. Sazerac rose +5.7%, Bacardi increased +2.8%, and Fifth Generation gained +6.5%. Tito’s Vodka was the top spirits brand by dollars and grew +4.7%, while Crown Royal, Jack Daniel’s, Don Julio and Fireball Whiskey all posted declines. Among faster-growing brands, Cazadores rose +55.9%, W.L. Weller increased +90.2%, Lunazul Tequila gained +18.5%, and Svedka rose +16.5%.

Prepared cocktails were again the main area of growth in the broader alcohol market, even though weekly sales cooled. Dollar sales for the segment totaled $268.0 million in the latest week, down -1.6% from the prior week. Over the four-week period, growth was led by spirits-based ready-to-drink and ready-to-serve products, where dollar sales rose +18.4% and volume increased +20.6%. Wine-based cocktails also advanced, with dollar sales up +6.0% and volume up +4.1%. The weakest part of the segment remained flavored malt beverages and seltzers, though those declines eased to -5.3% in dollars and -7.6% in volume.

The leading prepared cocktail brands reflected that shift. White Claw remained the largest brand by dollars and grew +1.3%, though case sales fell. Twisted Tea declined -9.0%. BuzzBallz increased +7.4%, and Cutwater Cocktail rose +15.7%. Surfside Cocktail posted one of the strongest gains in the segment, with dollar sales up +53.8%.

Across state markets, the weakness was widespread. NielsenIQ said all of the 10 largest state markets posted declines in the period ending October 17. Ohio and California were the strongest among those major markets, with dollar sales down -0.6% and -0.8%, respectively. California also had the most resilient volume trend, down -0.7%, while Ohio volume fell -3.0%. New Jersey lost momentum, with dollar sales down -2.0% and volume slipping from slight growth into a -1.0% decline. Michigan and Illinois improved somewhat, narrowing their dollar sales declines to -3.4% and -2.7%, respectively. Texas weakened further, with dollar sales down -4.5% and volume down -7.2%. NielsenIQ said Massachusetts and Washington continued to post the deepest declines among major markets.

Retail channels also remained soft in most parts of the market. Club stores led dollar declines at -3.9%, followed by food stores at -3.3%, convenience stores at -2.4%, liquor stores at -2.1% and mass retailers at -1.3%. The only gain came from the “all other” group, which includes drug, military and dollar stores, where dollar sales rose +2.3%. Volume trends were somewhat different, but still broadly negative. Convenience stores had the steepest volume drop at -5.4%, followed by food at -4.7%, mass at -4.0%, liquor at -3.7% and club at -2.4%. The “all other” group was again the only volume gainer, up +3.5%.