Wednesday, 16 October, 2024
Forbes, Joseph V Micallef
The post-COVID decline in wine and spirits consumption appears to be accelerating. More troubling for the beverage industry is that premium-priced products, once a sales driver, are underperforming overall sales. Moreover, the latest data from the Wine and Spirits Wholesalers of America (WSWA) indicated that the current trends will likely continue for the foreseeable future.
New data released by the WSWA’s SipSource revealed that:
Wine and spirits depletions—actual sales from wholesalers to over 450,000 retailers nationwide—declined 6.0% in the 12 months through August 2024. Wine sales declined by 8.0%, while spirits fell by 3.9%. Based on current data, the WSWA predicted that the negative year-over-year trend would continue for the remainder of 2024 and into 2025.
According to SipSource, “Despite earlier optimism driven by factors such as destocking and seasonal shipping patterns, broader consumption trends are cause for concern.”
Dale Stratton, a SipSource analyst, added:
One fewer shipping day in August contributed to the decline, but this doesn’t fully explain the larger systemic issues we’re seeing in both on- and off-premise channels.
To read the full article, click HERE.