WASHINGTON, D.C. 05/23/2024 – As predicted, April 2024 data trends improved thanks in part to the addition of two shipping days as compared to last year. Overall total spirits and wine declined -4.7% in the last 12-months ending April – to put that into perspective, wine and spirits declined -5.2% in the 12-months ending March and marks the first improvement in trends since October 2023.
Measuring RTD Impact on Spirits Trends
Spirits declined -1.6% and -3.8% in the last 12-month and 4-month period, respectively. Core spirits, the industry less the RTD cocktail segment, dropped -3.5% and -4.9% in the same 12- and 4-month periods, respectively. The Premixed Cocktail segment led Spirits category growth with a 9.5% increase in the 12-months ending April.
Consumers Continue to Favor Agave Spirits in The Off-Premise
Another bright spot for the spirits industry was Tequila, which gained +2.9% led by a strong +13.0% advance among Reposados. Delving a bit further into the strong showing in Reposado, the off-premise which accounts for slightly over 80% of segment growth, grew +14.3% driven by a +19.6% gain in the liquor channel that accounts for over 70% of off-premise volume.
Also of note, in April there was an improvement in trends across the entire pricing spectrum highlighted by growth for vodka in the $17.00 - $24.99 segment which gained +0.8% and accounts for just over a third of that categories’ volume. Within the Tequila category the growth in the $25.00 - $49.99 (+4.8%) and $17.00 - $24.99 (+5.4%) price segments both outpaced the category and accounted for 60% of its volume.
Wine Trends Improve Across Every Product Class in April
Wine trends improved across every product class in 12-month April ending data, but the path to recovery remains challenged. White wines (-5.4%) outperformed both Red (-9.4%) and Pink (-8.7%) in the latest data. There was also improvement across every white wine varietal with the strongest upswings by White Blends and Sauvignon Blanc that saw an improvement of +1.4% and +1.1%, respectively in April. Prosecco continues to be a bright spot for the wine industry, growing consistently for over a year, in April the segment gained +4.8%, a +1.3% improvement from the March trend. The $13.00 - $17.99 (+7.0%) and $8.00 - $12.99 (+2.9%) price tiers account for nearly all the Prosecco volume and were the key drivers of its growth.
What’s Next?
Looking forward through the rest of 2024, SipSource Analysts note that there is a loss of two shipping days in June, so the industry will need a strong showing in May to continue growth trajectory. Analysts expect the industry to gain momentum as it moves into the third quarter. It’s noteworthy that both the third and fourth quarter both have one extra shipping day. External economic factors like inflation, which remains elevated but moderated, and volatility in consumer confidence are elements that need to be watched carefully as the year progresses.