The US spirits market remained a tough trading environment in September, with sales by volume and value declining across most categories, new data shows.
In September, total sales volumes were down 1.8% year on year to 4.84 million nine-litre cases, while sales value dropped 3.5% to $1bn, figures from the National Alcohol Beverage Control Association (NABCA) show.
During the past 12 months, volumes dipped 1% to 61.2m nine-litre cases, while value growth inched up 0.3% to $13.6bn.
Close to all spirits categories monitored by NABCA, which covers sales in 18 control states, saw sales volumes and value drop in September.
Brandy and Cognac saw one of the largest declines, with volumes down 11.4% compared to September last year to 181,373 nine-litre cases. In value terms, sales fell 15.8% at $52.9m.
In the rolling 12-month period, the category’s volumes dropped 7.2% to 2.5 million nine-litre cases, while value sales sank 10% to $769m.
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By GlobalDataWhiskies also saw a slowdown in September, with “other imported whisky” (barring Irish and Scotch) seeing sales values drop 21.7% year on year to $1.9m. Volumes dropped 6.2% to 2,754 nine-litre cases.
Cocktails was one category that booked growth in volume and value terms in September and across the past 12-month period. NABCA attributed the increases to a 51.4% boost in canned cocktail volumes.
The category saw volumes grow 34.3% to 407,639 nine-litre cases in September, compared to the same month in 2023. In past the 12 months, volumes increased 15.3% to 3.8m nine-litre cases.
In value terms, cocktails saw a 26.9% increase to $32m in September and a 14% hike to $321m across the 12-month period.
Tequila still saw volumes grow 6.2% in the past year to 6.7 million nine-case litres, while value was up 7.4% to $2.4bn.
It did however see volumes drop 1% in September on 2023, while the spirit’s value remained flat at $192m.
A number of spirits majors are facing headwinds in the US. Earlier this month, domestic distiller MGP Ingredients issued a profit warning, following the release of its “preliminary” third-quarter results that included a 24% drop in sales.
MGP Ingredients, which produces a range whiskies and gins, said it expected annual sales to hit between $695m and $705, down from its earlier forecast of between $742m to $756m.
It added that it now projected adjusted earnings per share of $5.55 to $5.65, down from $6.12 to $6.23.
At the time, CEO and president David Bratcher said: “Soft alcohol spirits category trends and elevated industry-wide whiskey inventories are putting greater-than-expected pressure on our brown-goods business with a larger impact on our smaller, craft customer base”.
He added the group was expecting these challenges to carry on for the remainder of the year.
French spirits major Pernod Ricard also said earlier this month it expected net sales to be down for its US market in the full-year.
In its first-quarter results for fiscal 2025, released the Altos Tequila maker saw reported total sales for its Americas market drop 8% and 5% organically to €787m, assisted by a 10% decline in the US.
Speaking to analysts on the group’s outlook for the US at the time, Pernod’s CFO Hélène de Tissot said: “The expectation for the full-year is that the net sales are likely to be in decline, but with a gradual improvement in the… sell-out in a market which is normalising, but with some inventory adjustments. To be clear, it is expected to be better than Q1.”
