The Distilled Spirits Council (DISCUS) reported that U.S. spirits maintained its market share whereas revenues slipped in 2024 and warned that tariffs on spirits would additional curtail trade progress, throughout its annual financial briefing for media and analysts.
“Whereas the spirits trade has confirmed to be resilient throughout robust instances, it’s actually not resistant to disruptive financial forces and market challenges, and that was undoubtedly the case in 2024,” stated DISCUS President and CEO Chris Swonger in a press release.
Swonger reported that spirits provider gross sales in the US had been down -1.1% in 2024 totaling $37.2 billion, whereas volumes rose 1.1% to 312.2 million 9-liter instances.
For the third 12 months in a row, the spirits sector maintained its market share lead in 2024. Spirits market share totaled 42.2%, with features for greater than 20 years. The spirits sector has gained greater than 13 factors of market share since 2000. Every level represents $880 million in provider income.
Swonger famous that spirit gross sales had been nonetheless persevering with to normalize following the strong gross sales spikes through the pandemic, and financial headwinds together with excessive costs and inflation charges created extra challenges for the trade.
“Shoppers had been contending with a few of the highest costs and rates of interest in a long time, which put a pressure on their wallets and compelled many to scale back spending on little luxuries like distilled spirits,” Swonger acknowledged. “Our gross sales dipped barely however shoppers continued to decide on spirits and revel in a cocktail with household and mates.”
Swonger famous that greater rates of interest additionally impacted the three-tier provide chain with wholesalers and retailers persevering with to deplete stock construct ups and cautiously restock merchandise.
Presenting an outline of the spirits gross sales traits in 2024, Christine LoCascio, DISCUS chief, coverage, technique and membership, reported that regardless of the general slowdown, spirits ready-to-drink (RTD) merchandise and tequila/mezcal continued to develop in recognition in 2024, with gross sales up 16.5% and a pair of.9%, respectively.
Prime 5 Spirits Classes By Income in 2024:
- Vodka gross sales flat totaling $7.2 billion
- Tequila/mezcal gross sales up 2.9% totaling $6.7 billion
- American whiskey gross sales down -1.8% totaling $5.2 billion
- Cordials gross sales down -3.6% totaling $2.8 billion
- Premixed cocktails together with spirits RTDs up 16.5% to $3.3 billion
2024 Coverage Wins & 2025 Coverage Priorities
Within the public coverage area, Swonger highlighted quite a few necessary victories in 2024 on the federal and state ranges together with:
- The suspension of the EU’s retaliatory tariff on American whiskeys till March 31, 2025
- Wins on spirits RTDs in three states
- Defeated tax threats in 11 states
- Third-party supply enacted in Delaware and Maryland
- Tastings legal guidelines expanded in Ohio and West Virginia
- Cocktails to-go permanency in 5 new states, plus a five-year extension in New York
Swonger additionally outlined DISCUS’ priorities for 2025:
- Advocating for the everlasting suspension of retaliatory tariffs on spirits merchandise
- Making certain the Dietary Tips for People are primarily based on the preponderance of scientific proof
- Fairer tax therapy and elevated retail entry for RTD merchandise within the states
- Defending towards hospitality tax threats
- Increasing market modernizations together with cocktails to-go and direct-to-consumer delivery
In the course of the briefing, DISCUS mentioned the latest tariff threats impacting spirits imports and exports, and sounded the alarm over the scheduled reimposition and doubling of the EU’s tariff on American whiskey to 50% on April 1 associated to the metal and aluminum commerce dispute.
“Probably the most vital points going through U.S. distillers in 2025 is the specter of tariffs,” Swonger stated. “Because the suspension of the EU’s tariffs on American whiskey, our exports have rebounded to file highs. The reimposition of those tariffs at a 50% price would intestine this progress and do irreparable hurt to distillers massive and small. It could be a catastrophic blow that may drive many distillers out of our largest export market.”
Particular visitor speaker, Sonat Birnecker Hart, president and founding father of KOVAL Distillery in Chicago, underscored the devastating affect tariffs have had on small craft distillers.
“These tariffs have wreaked havoc on our craft distilling group,” Birnecker Hart acknowledged. “Many craft distillers have expended nice time, effort and sources to broaden into worldwide markets solely to see their goals shattered by tariffs which have completely nothing to do with our trade. The return of tariffs won’t solely damage my distillery however my native farmer too, and this ache might be felt in cities and cities throughout the nation the place 3,000 small craft distilleries are boosting jobs, tourism and agriculture.”
Swonger stated the worldwide spirits trade is united in urging their respective governments to proceed to barter to make sure that spirits merchandise don’t get caught up in commerce disputes.
“The worldwide spirits associations are working side-by-side to induce our governments to exclude distilled spirits from these commerce disputes,” Swonger acknowledged. “Tariffs on spirits not solely hurt distillers, additionally they severely affect farmers and hospitality companies together with eating places and bars, that are persevering with their fragile restoration after the pandemic. We’re making our case to the Trump administration that our trade has thrived with zero-for-zero tariffs and that distilled spirits’ ‘distinctive merchandise’ standing, which is acknowledged by the U.S. and our buying and selling companions, implies that these particular spirits can solely be made of their designated nations.”
