US Spirits De-Premiumisation Accelerates in November 2025

Jefferies has updated its US spirits de-premiumisation tracker for the four weeks ending November 29, revealing continued pressure across the category. Ready-to-drink (RTD) products expanded their market share by 372 basis points year over year, reinforcing price compression and intensifying competition across spirits.

According to Jefferies, Anheuser-Busch InBev’s Cutwater emerged as the single largest growth driver not only within RTDs, but across the broader spirits market. Despite pockets of resilience, the US beverage alcohol sector remains in a corrective phase and has yet to show signs of a sustained recovery.

US Spirits De-Premiumisation Weighs on Industry Growth

Distilled spirits continue to underperform their long-term growth trend. Jefferies cites Nielsen data showing US spirits value down roughly 4%. This result aligns closely with DISCUS figures for 2024, which show industry volumes and value excluding RTDs and cocktails declining by 3.0% and 2.6%, respectively.

Downtrading remains visible in vodka and rum, while premiumisation persists in select categories such as whisk(e)y and gin. Tequila continues to premiumise, but consumers now gravitate toward affordable premium offerings rather than prestige-priced labels.

27 Structural Headwinds Reshape Beverage Alcohol

Jefferies identifies 27 distinct headwinds affecting beverage alcohol, grouped into four core themes:

• Macro pressure: Alcohol, as the most discretionary staple, faces mounting pressure from cumulative inflation and household budget constraints.
• Health and moderation: Post-pandemic wellness narratives, regulatory scrutiny, and uncertainty around GLP-1 weight-loss drugs weigh on consumption sentiment.
• Social relevance: Shifts in social behavior, competition from cannabis, and questions around future consumer pipelines challenge long-term growth.
• Marketing and innovation: Jefferies notes that the industry lacks experience navigating prolonged downturns, raising questions about whether brand strategies must evolve.

US Spirits De-Premiumisation Creates Uneven Price/Mix Trends

Price and mix trends remain mixed, with isolated areas of premiumisation. Tequila price/mix declined by 1.9%, worsening from the previous period’s 1.6% drop. Consumers increasingly move away from prestige tiers above $45 toward premium offerings below $35.

Category performance tracked by Jefferies shows:

• Gin: +1.9%
• Vodka: +0.2%
• Rum: -0.1%
• Bourbon: +0.2%
• Canadian whisky: -0.9%
• Cognac: -2.4%
• Scotch: +1.8%

Tequila Weakens as Premium Brands Lose Momentum

Tequila declined 3.9% in November, compared to a 3.5% drop the prior month. Volumes fell 2.0%, while price/mix slipped 1.9%, according to Jefferies.

Don Julio posted a 3.7% decline, while Casamigos (-13.0%), Patrón (-9.8%), and Cuervo (-6.7%) recorded the steepest value losses. Meanwhile, Lalo and Lunazul continued to gain traction at more accessible price points.

Scotch, Irish, and American Whiskey Resist the Downtrade

Despite softer volumes, Scotch maintained price/mix growth of 1.8%, signaling ongoing premiumisation. Irish whiskey showed greater stability, with Jameson down 1.5% in value for the month and 1.7% over the past 12 weeks.

American whiskey continued to lean on premium strength. Jefferies highlights Buffalo Trace, Colonel E.H. Taylor, and Blanton’s as key growth drivers, while mainstream brands Jack Daniel’s (-4.6%) and Jim Beam (-6.3%) lagged.

US Spirits De-Premiumisation Hits Canadian Whisky and White Spirits

Canadian whisky weakened sharply, with Crown Royal declining 8.7% in November after growth in the prior month. Crown Royal Blackberry fell more than 45%, though Jefferies notes innovation cycling may create volatility in coming months.

In white spirits, vodka price/mix flattened as growth concentrated in Grey Goose alongside lower-priced competitors.

RTDs Continue to Outpace the Market

RTDs remained the strongest growth engine, expanding 27.2% year over year. Cutwater surged 98.6% in value, while brands such as Surfside (+248.3%), Sun Cruiser (+311.9%), and BuzzBallz (+57.9%) also delivered outsized gains. Former category leader High Noon showed signs of slowing.

Portfolio Exposure and What Comes Next

Jefferies estimates US profit exposure at approximately 50% for Diageo, 40% for Rémy Cointreau, and 25% for both Campari Group and Pernod Ricard. As US spirits de-premiumisation continues, performance will likely hinge on pricing discipline, innovation at accessible tiers, and the ability to defend brand relevance during prolonged economic pressure.

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Source of Information

Jefferies Data — US Spirits – De-premiumisation Tracker November 2025, written by staff

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