Wine & Spirits Distributors NAICS 424820

Oct 8, 2025 - Wine & Spirits Sales Fall

• 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.
• The global wine industry is bracing for the financial impact of President Trump’s 20% import tariff on all goods from the European Union, including wine. While the 20% tariff announced on April 2 is far less than the 200% Trump initially threatened in March, the new tariffs will affect everyone from distributors to restaurants to consumers, according to the Wine & Spirits Wholesalers of America, which notes that imported wine makes up 38% of the US marketplace. Beyond the EU, wines imported from other countries – including Argentina, Chile, Australia and New Zealand – will face 10% tariffs, while wines from South Africa will face a 30% duty and wines from Israel will be tariffed at 17%. Higher costs are the last thing the wine industry needs right now with wine sales falling due to lukewarm interest from younger consumers and competition from spirits and other alcoholic and nonalcoholic beverages.

• Year-end data from the Wine & Spirits Wholesalers of America’s (WSWA) trend tracker SipSource show 2024 was a challenging year for distributors. In 2024, total wine and spirits volume and revenue declined 5.5% and 5%, respectively, over the 12-month period. Spirits outperformed wine with volume and revenue down 3.7% and 4.3%, respectively, while total wine volume fell 7.2% and revenue was down by 6.3% year over year. Looking ahead, SipSource analysts expect favorable comparisons in Q1 to produce “slow but marked improvements” despite challenges including changing consumer preferences, potential tariffs on imported single-origin products like tequila, and supply chain disruptions. “In 2025, we should expect to see less impact from inventory management at the retail level,” said SipSource analyst Dale Stratton, adding “Retailers can only destock so far before failing to meet their consumers’ needs.”
• 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.