Depletion Trends in U.S. Wine & Spirits: August Signals Trouble

August delivered another tough month for U.S. beverage alcohol. Both wine and spirits posted steep year-over-year declines. While one fewer shipping day contributed, persistent consumer and channel pressures take center stage.

1. Sharp Declines in August Volume and Revenue

Spirits fell 10.7% in volume and 10.1% in revenue. Wine suffered even more, dropping 16.3% in volume and 12.4% in revenue. Meanwhile, Points of Distribution (PODs) remain in negative territory — a warning sign in the fight for shelf space.

These are the latest depletion trends reported by Wine & Spirits Wholesalers of America.

2. Pricing Tiers Under Pressure at Both Ends

When segmention is created by price, stress emerges in extreme tiers. In spirits, both ultra-premium (over $100) and the value segment (under $13) posted the largest declines. That suggests pressure on both the high and low ends of the market.

In wine, the under-$13 tier took the hardest hit — indicating consumers may be pulling back from entry-level offerings.

3. All Eyes on the Holiday Window

Industry attention now shifts to the critical period from September to December. Historically, that four-month span can make or break the year. Last year, spirits depletions fell 2.0% in volume and 2.5% in revenue, while wine dropped 6.0% in volume and 4.9% in revenue.

If holiday demand doesn’t rebound, the depletion trends of full-year performance will stay weak.

4. On-Premise Behavior Adds Complexity

Bars and restaurants tell a more nuanced story. In the on-premise channel, spirits and wine show stronger volume growth than revenue growth. That raises questions: are consumers benefiting from discounts, or are operators absorbing margin pressure to maintain traffic?

For spirits, especially, recent months show promising gaps growing between volume and revenue. Maintaining that momentum into Q4 could become a decisive narrative.

5. Categories to Watch: Tequila, Champagne, Whiskey

Some categories buck the overall decline. Tequila / Agave, once among the strongest growth engines, now posts a –0.4% year-to-date decline. Champagne, in contrast, climbs: off-premise volume remains up 13.4% YTD, showing how premiumization and festive demand persist even in a tight environment.

Meanwhile, whiskey (by origin) could emerge as a pressure point soon, as rising tariffs begin to feed through to consumer pricing.

What These U.S. Depletion Trends Mean for Stakeholders

• Monitor depletion trends closely by category and channel to guide strategy.
• Shift promotional focus to the September–December period — that window could determine whether the decline reverses.
• In on-premise, dig into margin dynamics: are brands or operators taking the hit?
• Support premium categories and innovation (e.g. Champagne, whiskey) while managing value perceptions.
• Track tariff developments closely, particularly for whiskey, because pricing shifts may disrupt consumer demand.

All data, insights, and quotes derive from Wine & Spirits Wholesalers of America and their August depletions report.

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Source of Information

Wine & Spirits Wholesalers of America Article — August Depletions Show Sharp Declines – Can the Holiday Trends Turn the Tide?, written by staff

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