Halloween demand narrowed the slide in U.S. spirits sales, NielsenIQ says

U.S. spirits sales declined in the four weeks ending Oct. 31, but demand tied to Halloween helped steady the market and narrowed the category’s recent slide, according to a NielsenIQ report released Wednesday.

NielsenIQ said dollar sales for total spirits, excluding prepared cocktails, fell 2.0% from a year earlier in the four-week period, while volume dropped 1.7%. The research firm said consumer caution and broader economic pressure accounted for 90% of the category’s weakness. Even so, it said results improved from the prior reporting period as shoppers increased purchases heading into Halloween and the start of holiday entertaining.

The week ending Oct. 31 was a clear bright spot in the report. NielsenIQ said spirits sales reached $574.4 million that week, up 10.1% from the previous week. The gain suggested that seasonal demand helped offset some of the pressure that has weighed on the business in recent months.

Category performance remained uneven. Tequila was one of the few large segments to post gains, with dollar sales up 1.7% and volume up 6.1% in the four-week period. Non-alcoholic spirits grew even faster, rising 22.7% in dollar sales and 25.6% in volume, making it the strongest segment in the report.

Vodka, the country’s largest spirits category by sales in many retail channels, also showed signs of stabilization. NielsenIQ said vodka dollar sales slipped 0.4% and volume fell 0.7%, both better than recent trends. Whiskey continued to lag, with dollar sales down 4.9% and volume off 5.2%. The report’s “all other” category, which includes brandy, cognac, cordials, gin, grain alcohol and rum, declined 2.0% in dollars and 2.9% in volume.

Among manufacturers, Diageo remained the top company by dollar sales, though its sales fell 6.0% and its case volume dropped by 68,600 cases in the period. Sazerac ranked second and posted one of the strongest performances among major suppliers, with dollar sales up 5.9% and case volume up 79,100 cases. Bacardi was third, with dollar sales up 3.5% and case volume up 9,800 cases. Fifth Generation, the maker of Tito’s Handmade Vodka, ranked fourth and grew 7.3% in dollars, with volume up 25,100 cases. Suntory Global Spirits rounded out the top five by dollar sales, though its sales fell 6.2% and volume declined by 44,700 cases.

When ranked by dollar growth rather than total size, Sazerac led the manufacturer list, followed by Fifth Generation and Bacardi. Constellation also stood out, with dollar sales up 17.8% and case volume up 7,200 cases. Heaven Hill made the top five growth list with a 0.9% increase in dollar sales, even as case volume fell by 12,900 cases.

At the brand level, Tito’s Vodka held the No. 1 spot by dollar sales and also posted growth, with sales up 5.7% and case volume up 20,100 cases. Crown Royal ranked second by dollar sales but declined 9.5%, with volume down 19,400 cases. Jack Daniel’s was third and fell 7.5%, with volume down 19,200 cases. Don Julio ranked fourth, with dollar sales down 3.0% and volume down 1,500 cases. Fireball Whiskey was fifth and declined 6.6% in dollars, with volume down 24,500 cases.

The fastest-growing brands by dollar sales included several labels outside the very largest positions. Cazadores posted a 60.0% increase in dollar sales and added 26,400 cases. W.L. Weller rose 103.7% in dollar sales, with volume up 8,500 cases. Lunazul Tequila increased 18.9% in dollars and 13,900 cases in volume. Svedka gained 17.5% in dollar sales and added 51,400 cases, joining Tito’s among the vodka brands showing stronger momentum in the period.

The report points to a market that is still contracting overall, but with clearer pockets of demand in tequila, non-alcoholic spirits and selected vodka brands as retailers move deeper into the holiday season. NielsenIQ’s figures cover total U.S. spirits sales excluding prepared cocktails, and its “all other” segment includes brandy, cognac, cordials, gin, grain alcohol and rum.