U.S. spirits sales fell 3.8% in the four weeks ending Aug. 1

U.S. spirits sales stayed weak in the four weeks ending Aug. 1, with dollar sales down 3.8% and volume off 4.2% from a year earlier, according to NielsenIQ’s latest Full View: Total Alcohol Pulse report. The data, which covers retail channels tracked by NielsenIQ and excludes prepared cocktails, points to a category that is still looking for firmer footing after a softer summer than many producers had hoped for.

NielsenIQ said broader category headwinds and softer consumer demand accounted for 91% of the decline, with gains from distribution and promotional activity offsetting only part of that pressure. On a weekly basis, spirits sales reached $512.7 million in the week ending Aug. 1, down 0.2% from the prior week ending July 25. The report said summer drinking occasions are still providing some support, but recent weekly results suggest the category has not recovered the momentum seen earlier in the season.

The weakness was not evenly spread across major segments. Whiskey posted the sharpest declines among the top three spirits categories, with dollar sales down 4.9% and volume falling 6.0%. Vodka also remained under pressure, with dollar sales down 4.2% and volume down 4.5%. Tequila, by contrast, showed a better trend line than the rest of the market. Dollar sales for tequila slipped 1.6%, but volume increased 1.1%, a sign that the category continues to attract consumers even as overall spending tightens.

That divergence matters for suppliers because vodka and whiskey remain large, established businesses across American retail, while tequila has been one of the most important growth engines in spirits in recent years. The latest NielsenIQ figures suggest tequila is still holding up better than many competitors, even if it has not fully returned to growth in dollar terms. For producers and distributors, that mix means the market is not declining in one uniform way. It is shifting toward categories that are still adding volume, even when pricing and broader spending patterns make dollar growth harder to achieve.

Non-alcoholic spirits remained the clear outlier on the positive side. NielsenIQ reported dollar sales up 25.7% and volume up 29.5% in that segment, making it the strongest performer in the report by a wide margin. The numbers are small compared with mainstream spirits categories, but the growth rate shows that alcohol-free alternatives continue to gain shelf space and consumer attention. In a market where most traditional categories are posting declines, that segment is drawing notice from both large suppliers and smaller brands looking for areas of expansion.

Outside the biggest categories, the rest of the spirits market remained subdued. NielsenIQ’s “all other” grouping, which includes brandy, cognac, cordials, gin, grain alcohol and rum, posted a 3.9% drop in dollar sales and a 4.8% decline in volume. That suggests the pressure is broad-based and not limited to one or two troubled segments. Even categories that often benefit from cocktail trends or seasonal interest did not escape the slowdown in this period.

Among manufacturers, Diageo remained the largest player by dollar sales in the measured channels, though its sales fell 8.0% and case volume dropped by 106,300 cases. Sazerac ranked second and was the strongest performer among the top five by size, with dollar sales up 4.6% and case volume rising by 29,900 cases. Bacardi was third, with dollar sales down 2.0% and volume down by 15,700 cases. Fifth Generation, the company behind Tito’s, ranked fourth and posted a 3.6% increase in dollar sales, along with a gain of 3,800 cases. Suntory Global Spirits rounded out the top five, with dollar sales down 6.6% and case volume lower by 45,500 cases.

The report’s ranking of fastest-growing manufacturers by dollar sales also highlighted a split between scale and momentum. Sazerac and Fifth Generation were the top growers among major suppliers, while Constellation recorded a 26.0% increase in dollar sales and an additional 6,500 cases. Trinchero Family posted 13.1% dollar growth, and Terlato Wines rose 11.4%, though both added relatively modest case gains. Those results suggest that some suppliers are finding targeted pockets of growth even as the overall spirits market contracts.

At the brand level, Tito’s Vodka held the top spot by dollar sales and managed a 1.3% increase in dollars, even though its case volume slipped by 1,900 cases. That mix indicates pricing and revenue resilience in a category that has otherwise been difficult. Crown Royal was the No. 2 brand by dollar sales, but it posted a 10.3% decline and lost 24,400 cases. Don Julio ranked third, with dollar sales down 8.2% and case volume off by 9,600 cases. Jack Daniel’s followed with a 3.8% sales decline and a loss of 9,800 cases, while Fireball was fifth, down 6.5% in dollars and 19,300 cases in volume.

Some of the strongest brand growth came from labels with narrower but quickly expanding followings. W.L. Weller led the dollar growth ranking with a 172.5% increase and an added 13,400 cases. Lunazul Tequila rose 24.0% and added 17,100 cases. Lalo Tequila increased 48.9% with a gain of 5,600 cases, reinforcing tequila’s relative strength in the current market. Svedka posted 14.2% dollar growth and added 33,700 cases. NielsenIQ also placed Sarti Cordial in the top growth group, reporting a gain of 6,200 cases, though it did not provide a comparable dollar growth figure in the release.

Taken together, the numbers show a spirits market that remains under strain from weaker demand and broad retail pressures, with only a few segments and brands moving clearly against the trend. Tequila is still performing better than whiskey and vodka, non-alcoholic spirits are expanding quickly from a smaller base, and a handful of manufacturers are gaining ground through brand strength, distribution or price mix. But the wider market in U.S. retail channels measured by NielsenIQ continues to contract, and the latest four-week period offered little evidence of a broad rebound.