Washington, D.C., November 20, 2024 — SipSource, the only source for wine and spirits data and trends rooted in Wine & Spirits Wholesalers of America (WSWA)’s depletion data, has released its highly anticipated Q3 2024 report, providing the most comprehensive view of consumption patterns, market dynamics, and category performance across the industry.
Key Takeaways:
- Emerging Trends: Wine and spirits sales facing continued downward pressure as Points of Distribution (PODS) decline across both the off-premise and on-premise channels, driven by tightened inventory management.
- Category Dynamics: Premiumization remains a mixed challenge. While RTD Cocktails and Tequila show growth in the spirits category, premiumization varies across product classes. Vodka, American Whiskey, and Gin continue to “premiumize,” but Tequila/Agave and Brandy/Cognac revenue trends are struggling to keep pace with volume changes. Meanwhile, wine segments like $8-$12 table wines are underperforming, while $50+ domestic table wines are showing some positive movement.
- Enhanced Analysis: Expanded regional consumption patterns and deeper channel performance data provide valuable insights for navigating post-pandemic benchmarks. Notably, on-premise performance has recently lagged behind off-premise, likely due to higher inflation in the on-premise sector.
Danny Brager, SipSource Analyst, remarked, "This quarter's data reflects significant shifts in consumer preferences amid economic uncertainties and tight inventory controls. SipSource empowers suppliers and distributors to stay ahead of evolving market demands across all three tiers of the industry."
With the addition of revenue trends to volume data, SipSource delivers more precise insights into premiumization.
Dale Stratton, SipSource Analyst, added, "The expanded categories and price tiers insights and enhanced forecasting capabilities—initially for spirits—cement SipSource’s position as the industry’s premier resource for strategic decision-making. These upgrades reaffirm our commitment to delivering unmatched value to subscribers."
According to the SipSource Forecast team: “These Q3 results continue to support the forward-looking projections in which we predict core spirits will continue to face significant headwinds over the next 12 months. This continues the trend we have seen over the last 24 months as core spirits consumption gives back gains from the COVID-19 period and moves towards pre-COVID norms.
It should also be noted that portfolio composition will be critical over the next 12 months as variability of performance across the product classes will continue to be greater than any period in recent history. Leaders will need to be strategic in how to allocate their investments across their portfolio given these industry-level trends.”
The Q3 2024 report offers an actionable roadmap for navigating today’s complex wine and spirits market. Enhanced metrics, including PODS and revenue tracking, empower subscribers with actionable insights, while regional and channel-specific analysis highlights evolving consumer dynamics.
For more information or to subscribe to SipSource, contact Eric Schmidt at Eric.Schmidt@wswa.org. Members of the media interested in learning more about SipSource, contact Michael Bilello at Michael.Bilello@wswa.org.
WSWA’s SipSource: The Leading Source for Wine & Spirits Market Trends
SipSource is the only provider of trusted, accurate wine and spirits insights powered by aggregated distributor depletion data. Representing over 60% of U.S. wholesale volume across 50 states, SipSource includes data from 150,000+ SKUs and 450,000+ outlets. This primary-source data, exclusively from WSWA’s family-owned distributors, is never shared with third-party providers. Built on detailed, single-product transactions between wholesalers and retailers, SipSource offers reliable historical trends and advanced forecasting to deliver unmatched industry visibility.