Depletions Declines Accelerated In First Quarter, Wholesalers Say
Depletions declines in both wine and spirits accelerated in the first quarter, according to the Wine & Spirits Wholesalers of America’s SipSource data tracker, with wine facing sharper decreases. Spirits volumes were down 6.3% and revenue dropped 5.1% for the quarter, WSWA said, adding that it expects spirits depletions to stabilize in negative territory in the months ahead and finish the second quarter at -3.8% on a rolling 12-month basis.
For wine, the group’s data shows that volume declined by 9.9% and revenue fell 10.5% in the first three months of the year. On the premiumization front, “recent months have seen volume trends outstrip revenue in the wine category, while spirits revenue has recently rebounded ahead of volume trends,” WSWA noted.
The trade group added that lower-priced table wines are showing greater challenges than previously expected, and that wines above $50 are seeing volumes rise without a matching gain in revenue, as existing inventory levels remain high.—Shane English
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
