WSWA SipSource® Holiday Preview: Wine and Spirits Sales Steadying

Data Points to Stabilization, Not a Rebound

WASHINGTON, Oct. 28, 2026 (GLOBE NEWSWIRE) -- Wine & Spirits Wholesalers of America (WSWA) today released its SipSource^® 2026 holiday outlook, based on depletion data reported directly by wholesalers, showing wine and spirits sales declines easing as the industry enters the holiday season. SipSource analysts presented the findings in a webinar, projecting stabilization similar to current levels in the fourth quarter rather than a return to growth, and they said holiday results will shape how the categories perform in 2027.

Core spirits volume fell 2.5% over the latest three months versus a year ago, an improvement on the 4.1% decline over the past 12 months. Wine remains under heavier pressure, with 12-month volume down 8.0%. Both categories face easier comparisons in the fourth quarter after a weak holiday 2025, when spirits volume fell 5.5% and wine fell 9.4%.

“The holidays will be good for some parts of the business and harder for others,” said SipSource analyst Danny Brager. “We’re seeing real signs of stabilization, and the soft comparisons of year ago should work in our favor this quarter. But consumers are being far more selective with their spending, and until economic conditions improve, we don’t expect that to change.”

Where the Growth Is
Several spirits segments have turned positive in recent months. Over the latest three months, depletion volume rose 6.6% for Irish whiskey, 2.5% for tequila and 1.4% for cordials and liqueurs. U.S. whiskey, rum and gin continue to decline, but at a slower rate than their 12-month trends.

Champagne, Prosecco and sauvignon blanc continue to lead the wine category. Among wines priced $9 and up, 12-month revenue grew 8.1% for white blends, 6.4% for malbec and 4.5% for sauvignon blanc. Merlot (-12.4%), zinfandel (-8.7%) and red blends (-8.2%) posted the largest declines.

Wine priced at $16 and above is holding up comparatively well. Value wines below $13 remain the largest drag on the category. SipSource analysts said the gap between volume and revenue trends at higher price tiers likely reflects discounting, which gives shoppers the opportunity for strong value this season.

Where Consumers Are Buying
Bars and restaurants continue to perform better than retail stores, although revenue declined in both channels. Over 12 months through September, on-premise wine and spirits revenue fell 2.5%, compared with a 5.6% decline for off-premise. Lodging, recreation and transportation venues are the strongest on-premise performers, while convenience stores lead off-premise.

Shoppers are shifting to smaller package sizes. Over 12 months, off-premise spirits revenue for sizes under 750 ml rose 8.1%, driven largely by ready-to-drink (RTD) cocktails, while revenue for 750 ml and larger sizes fell 6.1%. Analysts expect small formats to sell well as stocking stuffers.

Ready-to-Drink Cocktails: Still Growing, But Slowing
RTD products are now a $14 billion off-premise business, large enough that SipSource now analyzes them as a fourth category alongside beer, wine and spirits. Spirits-based RTD sales reached $4.0 billion over the latest 52 weeks, up from $1.0 billion in 2021, and 11 of today's top 30 spirits brands by volume are RTDs.

Spirits RTD dollar sales rose 23.1% over the latest 52 weeks, compared with 16.6% over the latest 13 weeks. Brand turnover remains high: 60% of today's top 15 RTD brands were not on the list in 2021. (Data from NIQ covering 52 weeks ending Oct. 3, 2026 of Beer, Wine/Spirits RTDs Total U.S. Off-Premise Measured Channels.)

What Comes Next
SipSource expects trends to continue stabilizing through 2027, with improvement but not overall category growth. Analysts expect retailers to keep tightening shelf space, while businesses across all three tiers continue reducing inventory. Wholesale inventories are down 4.5% from a year ago, but the inventory-to-sales ratio remains at 1.63, well above the 1.13 typical from 1992 to 2006.

“Holiday 2026 is going to tell us a lot about 2027,” said Dale Stratton, SipSource analyst. “The economy is the single biggest wild card. Moderation, wellness and a more choiceful consumer are all part of the picture, and the businesses that understand those occasions will be best positioned to succeed.”

“Wholesalers see the market in real time across every channel and state where they operate, and SipSource puts that view in our members’ hands,” said WSWA President and CEO Francis Creighton. “The numbers are difficult, but clear data helps the industry make better decisions about what comes next.”

Methodology
SipSource figures reflect wholesale depletions across on- and off-premise channels through September 2026, excluding NABCA control states, unless noted. RTD and package-size figures come from off-premise scan data for the 52 weeks ending Oct. 3, 2026. Inventory figures come from the U.S. Census Bureau Monthly Wholesale Trade Report through August 2026.

About SipSource^®
SipSource is WSWA’s proprietary market intelligence platform, providing depletion and inventory data reported directly by U.S. wine and spirits wholesalers. Covering 70% of wholesale volume across all 50 states, the platform helps industry stakeholders make informed business decisions. WSWA releases quarterly SipSource findings and an annual12-month Forecasting Report based on 9-liter case depletion growth rates across seven major spirits categories and the total spirits market. Learn more at sipsource.com. 

About WSWA 
Wine & Spirits Wholesalers of America (WSWA) is the national trade association representing the wholesale tier of the wine and spirits industry. WSWA member companies are family-owned and operated, distributing over 80% of all wine and spirits sold in the United States. For more information, visit www.wswa.org or connect with us on LinkedIn, Facebook or X. 

ME DIA CONTACT
Christy Moran
Senior Vice President, Communications & Marketing
christy.moran@wswa.org | (202) 669-3293