US Spirits Market: De-Premiumization Tracker August 2025
Last Updated on November 17, 2025 by Maythe Monoche
The US spirits market continues to grow below its long-term trend. According to Nielsen data, industry value slipped around -3% in August. This decline mirrors the 2024 run rate reported by DISCUS, with industry volumes and value (excluding RTDs and cocktails) at -3.0% and -2.6%.
In a recent industry news, the CEO of Sazarac, Mark Brown, shared that while downtrading hurts vodka and rum, premiumization still thrives in whisk(e)y and gin. He added that despite inflationary pressure and moderation from Gen Z consumers, long-term drivers—such as premiumization and share-of-throat growth—remain strong.
Key Headwinds for the US Spirits Market
The US spirits market faces two unique challenges:
- Cannibalisation from spirits-based RTDs. These products continue to pull volume from distilled spirits.
- The rise of small pack formats. Small packs now account for 80% of volume growth, offering consumers lower out-of-pocket costs.
Brown emphasized that although these trends pressure current volumes, they also recruit new consumers into spirits and support future premiumization.
Price and Mix: Where Premiumization Persists
Price and mix trends show mixed results across the US spirits market:
- Tequila: -0.6% (slower decline vs July).
- Gin: +1.6%.
- Vodka: +0.5%.
- Rum: -0.5%.
- Bourbon: +1.0%.
- Canadian Whisky: +1.5%.
- Cognac: -2.7%.
- Scotch: +0.6%.
Brown pointed out that while tequila slowed, gin, bourbon, and Canadian whisky kept the premiumization story alive.
Tequila: Don Julio Outpaces the Competition
Tequila sales dipped -1.8% in August, with volumes at -1.3% and price/mix at -0.6%. Don Julio once again outperformed, growing +6.2% with volumes up +8.2%. However, Casamigos (-20.0%) and Altos (-11.7%) weighed heavily on the category.
Scotch and Irish Whiskey: Premium Brands Drive Growth
Scotch volumes fell -6.4%, but price/mix stayed resilient at +0.6%. Premium brands like Johnnie Walker (+2.2%) and Chivas Regal (+0.9%) drove growth, offsetting weakness in mainstream labels.
Irish whiskey trends remained stable, with Jameson down only -1.1% over the past 12 weeks.
American Whiskey: Premiumization Still Strong
Premium brands such as Colonel Taylor continued to boost the US spirits market. In contrast, Jack Daniel’s recorded the sharpest declines, while Jim Beam also struggled.
Canadian Whisky: Crown Royal Rebounds
Crown Royal improved in August, climbing +0.8% after a steep drop of -11.6% in July. Innovation remains a factor: Blackberry surged +180.8%, while Peach slipped -14.9%. Brown cautioned that the data may remain volatile as new flavors cycle through.
White Spirits and RTDs: Different Directions
Vodka continues to face downtrading, with brands like SKYY and Absolut seeing declines. Meanwhile, RTDs jumped +26.7% in August compared with +21.6% the previous month. Growth came from Surfside, Sun Cruiser, and Buzzballz, while ABI’s Cutwater and Nutrl also ranked among the top performers.
Profit Exposure in the US Spirits Market
Major companies remain heavily tied to the US spirits market:
- Diageo: ~50%.
- Remy: ~40%.
- Campari: ~25%.
- Pernod: significant but smaller exposure.
👉 In Mark Brown’s words, “distilled spirits in the US are going through a correction.” Yet he expects conditions to improve once inflationary pressure eases and RTD momentum stabilizes.
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Source of information
Mark Brown’s Industry News Update Newsletter — US Spirits: De-premiumisation Tracker August 2025
The image of the article is courtesy of © Brett Sayles via Canva.com
