Overview: The U.S. spirits category is projected to achieve a 1% volume increase for the year, according to Impact Databank data released August 31, 2026. This growth is primarily attributed to ready-to-drink (RTD) brands connecting with consumers, masking a decline in core spirits volumes.
The Full Story
While conditions remain difficult across the U.S. drinks business, the spirits category continues its long-term upswing this year with a 1% increase. Excluding RTDs, the spirits market would be projected to decline for the fourth straight year. Despite the tough climate, four of the top 10 spirits marketers in the U.S. by volume have shown growth in control states in the year-to-date through July: Sazerac, Bacardi, Fifth Generation, and Stateside Brands.
Top volume player Sazerac saw leading label Fireball slip 4.7% in control states in the year-to-date, but that performance has been offset by growth across a number of other brands, such as Buzzballz, W.L. Weller, and Svedka, among others. Bacardi landed on the positive side despite a 7% decline for its namesake rum brand in control markets. Fifth Generation has been boosted by 2% growth for Tito’s vodka in control states in the year-to-date through July, and its Lalo Tequila brand also continues to carve out impressive progress. Stateside Brands, led by 44% growth for its Surfside RTD, posted the largest gain among the top spirits marketers in the first seven months of the year with a 13.5% increase.
Overall, spirits volume increased 0.3% in control markets in July, while dollars slipped 2.2%. On a rolling 12-month basis, the category is down 0.6% in volume and 2.6% in value across control states, which account for over 20% of total spirits volume in the U.S., according to Impact Databank. The cocktail segment, led by canned RTDs, continues to buoy the spirits category, rising 20% by volume and 19% by value in control markets in July. Cachaca, cordials, Irish whiskey, Scotch whisky, and Tequila were also in positive territory for the month.
On-premise showed similar trends to the broader spirits market in control states last month, up 0.2% by volume and down 2.5% by value. On a rolling 12-month basis, spirits volume on-premise grew 0.5% while value fell 1.7%. On the wine side, volume and value declined 4.6% and 3.4% respectively in control states in July, with 12-month trends at -4.2% and -2.6% respectively.
What This Means
The direct impact of this release highlights a divergence between core spirits and ready-to-drink products. While the broader category projects a 1% volume increase, excluding RTDs would see a decline for the fourth straight year. This dynamic suggests that innovation in canned cocktails is essential for maintaining overall category growth despite challenging conditions in control states.
Consumer Takeaway
The data indicates that consumers are shifting toward ready-to-drink options and specific categories like Tequila and Scotch whisky to navigate the current market climate. While core spirits face a projected decline for the fourth straight year excluding RTDs, brands like Sazerac, Bacardi, Fifth Generation, and Stateside Brands demonstrate resilience through diversified portfolios.
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