The results from April improved thanks in part to the addition of two shipping days as compared to last year. SipSource cites that overall total spirits and wine declined -4.7% in the last 12 months to April. To put that into perspective, wine and spirits declined 5.2% in the 12 months to March and marks the first improvement in trends since October 2023.
Spirits declined 1.6% and 3.8% in the last 12-month and four-month period, respectively, according to SipSource. The RTD cocktail segment dropped 3.5% and 4.9% in the same 12- and four-month period.
Slight Category Improvements
Meanwhile, the premixed cocktail segment led spirits category growth with a 9.5% increase in the 12-month period to April, SipSource states. Another bright spot for the spirits industry was tequila, which gained 2.9% led by a strong 13% 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 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, according to SipSource.
Wine Remains a Challenge
Wine trends improved across every product class in April, but the path to recovery remains challenged. White wines (-5.4%) outperformed both Red (-9.4%) and Pink (-8.7%) in the latest twelve-month data, SipSource states.
There was also improvement across every white wine varietal with the strongest upswings by White Blends and Sauvignon Blanc, which 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, according to SipSource.
As we move forward through 2024, we lose two shipping days in June, so SipSource says we need a strong showing in May. The data source expects to gain momentum as we move into the third quarter and 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, along with volatility in consumer confidence are elements that need to be watched carefully as the year progresses.
