1st BATCH OF FILES AVAILABLE NOW!

Ready-to-drink spirits soared past vodka as the number one spirits segment by 9-liter case volume in 2025, DISCUS showed during the org's annual economic briefing this morn. A remarkable stat even if skewed by their fast-moving, lower-ABV nature, and even as traditional spirits cos aren't the primary suppliers of these products. Spirit-based RTDs and premixed cocktails collectively jumped 17% last yr, same trend as 2024, according to DISCUS estimates, adding another 12.5 mil 9L cases to 85.6 mil total. Up to 27 share of total spirits volume and well above vodka, now the #2 segment by cases, which fell 2.2% to 72.5 mil cases. After nearly quadrupling volume since 2020, RTDs are now also nearly triple the size of tequila (-0.3% in 2025) at 32.1 mil cases and American Whiskey (-1%) at 30 mil cases.Total US spirits volume grew 1.9% in 2025 to 318.1 mil cases, DISCUS ceo Chris Swonger showed, but supplier revenues declined 2.2% to $36.4 bil. Perhaps no stat so starkly demonstrates RTDs' outsized impact, particularly on volume: strip out canned cocktails and core spirits slipped 2.8%, 6.6 mil cases. Nearly a 5-pt swing for the total category. Tho they're also the primary growth engine on $$ front, with inclusion of RTDs goosing total spirits' revenue trend by 1.4 pts. Sans canned cocktails, core spirits $$ fell 3.6% last yr.RTDs still have a ways to go to catch other top segments by $$, however. Segment grew 16.4% to $3.8 bil, by DISCUS' count, now over 10 share of spirits $$. But still finished several bil behind vodka's $7 bil (-3%) tequila's $6.4 bil (-4%) and American Whiskey at $5.1 bil (-1%).Spirits Grew Revenue Share Lead Slightly, Sez DISCUS: +0.2 Pts to 42.4 Share vs Beer -0.2 to 41.8 "We do know this past year has been challenging," Chris acknowledged. But the US spirits sector "maintained" its market share lead and actually expanded it slightly among total alc bevs, according to DISCUS estimates. While revenues dipped last yr, spirits finished a bit ahead of beer as the top category by $$ share, up 0.2 pts to 42.4 share compared to beer at 41.8 share and wine at 15.7 in this dataset.Spirits revenues more than doubled over the last 20 yrs, noted DISCUS chief of policy, strategy & membership Christine LoCascio, adding that over the last decade they picked up 7 share of total alc bev revenues and 6 share of volume to 39.5. Despite a challenging consumer backdrop in 2025, Christine cited "no evidence" of de-premiumization in spirits, as high end and superpremium products still accounted for 58% of category $$.Tariffs Took a Bite Out of Exports and Imports but Could Have Been Much Worse Tariffs were among 2025's hottest topics and remain a key concern. That's as exports have become increasingly important to the US spirits biz, exceeding $2.4 bil in 2024, up from just $478 in the year 2000. Org's mid-yr report showed export declines of 9% in Q2, while yr over yr Canadian exports declined 73% between Mar and Oct after provincial bans were imposed last spring. Then too, US spirits importers collectively paid more than $200 mil in tariffs thru Oct 2025, according to DISCUS.Org continues to advocate for zero-for-zero tariffs but expressed gratitude that the situation hasn't devolved further. While the US currently imposes a 15% tariff on imports from the European Union, US spirits exports to the EU and UK remain duty free for now, with the EU's 30% retaliatory tariff expected to stay suspended thru at least Aug 6, 2026. Similarly, there are currently no tariffs imposed on USMCA compliant goods between US, Canada and Mexico. And in recent mos, Canadian provinces Alberta and Saskatchewan reportedly put US products back on their shelves.Expanded RTD Access Among Top Advocacy Efforts The fact that US exports remain essentially tariff-free was cited first and foremost as DISCUS' top advocacy accomplishment. Org also noted it was "very involved" in legislation helping to close the intoxicating hemp loophole and claimed to have defeated tax threats in 13 states. But RTDs remain central to the org's advocacy efforts, Chris noted, highlighting expanded mkt access in CT, IN, ME & VA as well as for 400 private beer/wine licensees in Montgomery County, Maryland. DISCUS will continue to seek "fairer" tax treatment and expanded retail access for RTD spirits in 2026, he added, pointing to big oppys in states like TX and "other markets around the United States." All-in, there are over 2,300 distilleries across the US, DISCUS noted, the 2nd largest spirits mkt in the world which supports more than 1.7 mil jobs and generates over $250 bil in annual US economic activity.

RTDs Passed Vodka as #1 Spirits Segment by Volume, Per DISCUS; Core Spirits Down ~3% in 2025

Publishing Info