Wine & Spirits Distributors NAICS 424820

Dec 8, 2025 - Distributors Relying on Strong Close to 2025

• Volatility this holiday season is reshaping year-end performance for wine and spirits, with mixed category trends signaling caution for distributors and retailers, the Wine & Spirits Wholesalers of America reported in December. Recent WSWA depletion data shows spirits volumes rose 3.7% in October, while wine declined 2.1%, underscoring uneven demand across categories. November comparisons are expected to look stronger due to weak 2024 results. Still, consumer behavior remains unpredictable. Retailers are adjusting shipment timing and inventory strategies, leaving suppliers reliant on a strong holiday finish to meet year-end targets. For distributors, this volatility means greater pressure to manage inventory risk, anticipate retailer pullbacks, and diversify portfolios to capture shifting consumer preferences. Recent trends suggest that while spirits may see modest recovery, wine continues to face structural challenges, requiring careful planning to navigate seasonal swings and sustain profitability into 2026.
• New data from drinks data provider IWSR shows that while Americans say they are drinking less, actual consumption has only slightly declined, with weekly averages hovering around 10 to 12 drinks per adult since the 1970s. Still, broader trends, such as fewer adults identifying as drinkers (down to 54% to the lowest in decades) and growing health concerns, signal a slow but steady cultural shift. For wine and spirits distributors, this means slower volume growth and potential declines in traditional product categories, especially among younger demographics who increasingly favor non-alcoholic alternatives. The industry may see reduced demand for mainstream spirits and wines, while premiumization and diversification into alcohol-free offerings could offset losses. Distributors who adjust their portfolios to include mocktails, low-ABV wines, and alcohol-free spirits stand to capture emerging market segments. Overall, the trend suggests a gradual erosion of core sales, requiring strategic pivots to sustain profitability.

• August was a dispiriting month for wine and spirits wholesalers, the latest depletion data from the Wine & Spirits Wholesalers of America (WSWA) shows. Spirits posted a 10.7% decline in volume and 10.1% drop in revenue for the month, with wine faring worse, dropping 16.3% in volume and 12.4% in revenue. Looking ahead to the critical holiday season and the associated four-month comparison period, historically, September through December represents a make-or-break stretch for the industry. Last year, spirits depletions were down 2% in volume and 2.5% in revenue during the period, while wine saw a 6% decline in volume and a 4.9% drop in revenue. Recent forecasts for holiday spending, including PwC’s 2025 Holiday Outlook survey, aren’t encouraging: PwC forecasts seasonal spending to decline on average by 5% this year compared to 2024, the first notable drop since 2020.
• Producer prices for beer, wine, and distilled alcoholic beverage merchant wholesalers rose 1.7% in August compared to a year ago, after rising 4.4% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Sales for beer, wine, and liquor distributors were flat in July compared to a year ago and down 7.4% versus June, according to the Census Bureau. Industry employment shrank 1.2% year over year in July, while the average industry wage rose 2.3% over the same period to a new high of $27.92 per hour, BLS data show. Wholesale prices, wages, and employment all are at or near historic highs as the industry grapples with the impact of import tariffs, inflation, and waning demand for some products and from some customer segments.