SipSource Sees Glimmers of Stability in Alcohol Industry
April brought a welcome change in momentum for the beverage alcohol industry, delivering relatively strong results compared to recent months.
According to SipSource data and analysis, while both the spirits and wine categories still recorded year-over-year declines, the contraction was notably milder than previous trends. Spirits posted a -1.8% drop in volume and a -0.9% decline in revenue, while wine saw a -3.3% decrease in volume and a -2.7% dip in revenue for the month.
Despite the stronger showing in April, these results had a limited impact on the overall 12-month performance metrics, which remain under pressure. The spirits category, however, is beginning to show signs of resilience, with smaller declines and stabilizing trends suggesting a potential turning point. In contrast, wine continues to struggle, with persistent volume and revenue declines raising concerns about the category’s long-term trajectory.
Ongoing Challenges Ahead
Point-of-distribution (POD) trends also showed slight improvement, though they remain in negative territory. This suggests that while April’s numbers offer a glimpse of optimism, there is still considerable ground to cover before meaningful recovery takes hold.
Looking ahead, shipping days will play a key role in shaping results over the next few months. May 2025 has one fewer shipping day than May 2024, while June will benefit from one additional shipping day. Overall, Q2 2025 will see the same number of shipping days as Q2 2024, offering a level playing field for year-over-year comparisons.
However, comps for the upcoming May through July period present a mixed outlook. Spirits face a -2.5% comp in volume and -3.3% in revenue, while wine faces steeper hurdles with -6.6% in volume and -5.1% in revenue. These figures underscore the ongoing challenges that will need to be addressed for the industry to return to sustained growth.
According to SipSource analysts, external factors continue to influence market behavior. Ongoing tariff threats are prompting forward buying in categories such as Champagne, Prosecco, cordials/liqueurs, Scotch and Irish whiskey. Additionally, Canada’s continued boycott of U.S. products is raising questions about potential impacts on supplier inventory levels.
While April provided a much-needed boost, structural issues and external pressures remain. Close monitoring of shipping schedules, tariff developments and international relations will be key in navigating the months ahead.
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