According to a recent analysis from IWSR, overall national alcohol sales in the US have fallen by 3% in 2024, with most major labels affected.
Remy Cointreau, Absolut Pernod Ricard, Proximo Spirits and Anheuser-Busch — all recently reported a decline in revenue and sales. Market experts claim that customers impacted by inflation are changing their habits due to high prices.
Alcohol sales are expected to rise during the upcoming holiday season. However, the overall declines are a “normalization” within the industry, and the return to pre-covid levels, according to the IWS report.
Marten Lodewijks, President of IWSR stated, “Consumers reduced their spending on spirits due to the generally higher out-of-pocket cost of a bottle of spirits and began to pivot more towards beer and (ready-to-drink canned cocktails) that cost less on a per-serve basis,” he said. “The industry is still coming down from the incredible growth seen immediately post-pandemic.”
During it’s most recent quarter, Pernod Ricard, the maker of Jameson and Kahula, reported a drop in US sales of 10%.
Remy Cointreau reported a drop in its stock value of 50%. The company’s CFO said, “This performance reflects the continued de-stocking in the United States on the back of a persistent weak depletion and more importantly, below our expectations”.
The decline is expected to continue into 2025 as consumers make cuts on luxury household items and move to cheaper brands. Lisa Hawkins of The Distilled Spirits Council of the United States said, “As the spirits industry continues to recalibrate following the extraordinary sales boost during the pandemic, inflation and high interest rates are slowing the growth of the spirits sector,”.
By CEO NA Editorial Staff
