Spirits Sales Decline Slows in US Control States as Tequila and RTDs Gain Ground

Spirits sales in the United States’ control states have continued to decline in 2025, but the rate of decrease has slowed compared to last year. According to data from the National Alcohol Beverage Control Association (NABCA), spirits volumes in these states fell by 1.4% during the first eight months of this year. This follows a 0.9% drop recorded in 2024. However, the most recent figures show that August’s decline was less than 1%, suggesting some stabilization in the market.

Control states are jurisdictions where the state government manages the sale and distribution of alcoholic beverages at the wholesale or retail level. There are currently 18 such states, including Pennsylvania, Mississippi, and New Hampshire. Despite the overall downward trend in spirits volumes, Impact Databank reports that the broader U.S. spirits market grew by 1.3% in 2024 and is expected to post another modest gain this year. This growth is largely attributed to strong performances from ready-to-drink (RTD) cocktails and Tequila.

Pennsylvania, the largest control state by volume, has defied the national trend with a 3.2% increase in spirits sales during the first eight months of 2025. Mississippi also posted gains, making them the only two control states to see year-to-date growth so far. The rest of the control states have experienced declines across most major spirits categories.

Within these markets, Tequila and prepackaged cocktails have been notable exceptions to the overall decline. Tequila sales rose by 2.9%, while prepackaged cocktails surged by 27.3% compared to last year’s figures for the same period. These categories continue to attract consumers looking for convenience and new flavor experiences.

Among suppliers, Philadelphia-based Stateside Brands has emerged as the fastest-growing company in control states this year. The company’s growth is driven by its Surfside RTD label, which has gained significant traction among consumers seeking convenient alcoholic beverages.

Tito’s Handmade Vodka, produced by Fifth Generation Inc., remains the top-selling spirit in control states so far this year. It outsells its nearest competitors—Smirnoff vodka and Fireball cinnamon whisky—by a two-to-one margin, according to NABCA data.

On a national level, Gallo-owned High Noon leads all RTD brands by volume in the U.S., according to Impact Databank. The continued popularity of RTDs and Tequila suggests that consumer preferences are shifting toward these segments, even as traditional spirits categories face headwinds in many markets.

Industry analysts say that while overall spirits consumption may be softening in some regions, innovation and changing tastes are helping certain brands and categories maintain momentum. The performance of Pennsylvania and Mississippi indicates that local factors can still drive growth despite broader national trends. As suppliers adapt to evolving consumer demands, RTDs and Tequila are expected to remain key drivers for the industry through the rest of 2025.