Americans & # 039; Wine consumption has dropped for the first time in 25 years


This is the result of a new report by the IWSR industry group, which saw a decline in wine consumption for the first time in 25 years. Instead, the Americans drink more spirits and ready-to-drink cocktails, such as: B. hard seltters, following a broader trend of people looking for low-calorie drinks when they become aware of their health.
Beer is also down with a 2.3% decline in sales – the fourth year of the decline. Sales of domestic beer brands like Budweiser declined by 3.1%. However, it wasn't all cloudy for the industry, with craft beer sales up 4.1% and low or non-alcoholic beer sales up 6.6%.
Beer slips. Here's what Americans drink instead
The greatest growth in alcohol was recorded in the ready-to-drink category. Sales rose 50% last year, fueled by the seemingly unquenchable thirst for selters such as White Claw, Truly and Bon & Viv. It is an $ 8 billion industry with sales expected to triple in the next three years.

Spirits, the other main growth category, have a new top brand. Smirnoff was dethroned with the award for Tito's homemade vodka as America's best-selling distillate. Sales of the Austin-based brand grew 20% last year. Mezcal, tequila and whiskey from various countries such as Japan, Ireland and the USA also grew.

According to the ISWR, which uses financial information and other proprietary data to track sales, U.S. consumers pay more for premium products. constellation (CNST) Brands, which manufactures various well-known alcoholic brands, announced that sales had recently declined due to declines in low-end wine brands. But its premium wine lines, including Kim Crawford and Prisoner, which cost more than $ 11 a bottle, do well.
Other companies like Anheuser-Busch InBev (BUD), diversify their portfolio to reflect the taste of high-calorie beverages towards lighter alternatives. For example, Bud Light Seltzer is launching this month. This is Anheuser Busch's third Seltzer spike brand, which combines a Natural Light Seltzer with beer and fruit taste and the original brand Bon & Viv. The company was also on a shopping spree from craft breweries.
Customs is another problem for wine and spirits. President Donald Trump recently proposed a 100% tariff for French wine and champagne, in addition to an already imposed 25% tariff for most European wines and whiskeys. This was retaliation for the subsidies that Europe granted to the aircraft manufacturer airbus (EADSF),
Tariffs are felt through Brown-Forman (BFA), the creator of Jack Daniel & # 39; s. In its latest earnings report, the company said it was paying for higher tariffs from the European Union without passing them on to customers through price increases. Due to the "uncertainty regarding the current economic and geopolitical environment in certain emerging markets and in the travel retail channel and the higher input costs", the forecast for income growth for 2020 had to be lowered by one percentage point.