In this episode of the DrinkUp Podcast Daily Industry Brief, the host breaks down the latest U.S. beverage market data and translates it into actionable guidance for distributors, suppliers, and operators. The key takeaway is that spirits are not in decline; they posted a record 306 million 9‑liter cases in 2025, achieving about 1 % volume growth despite a tough environment. Growth is concentrated in tequila, whiskey, and spirits‑based ready‑to‑drink (RTD) cocktails, with brands such as Surfside (now the #3 spirits brand by volume), Cutwater (+40 % growth), and Don Julio (+16 % to ~4 M cases, now the top spirits brand by retail value at $2.8 B). State‑level data (e.g., Virginia) mirrors the national trend, showing tequila rising to the #2 category by value and RTDs up 9.5 % driven by Buzzballs and Fireball’s new RTD. Wine volumes are flat to slightly down, but premium and luxury tiers, direct‑to‑consumer channels, and tourism continue to generate strong dollars; cheap, low‑price wine is losing ground. Cultural signals—Suntory’s cross‑country flavor collaborations and Sotheby’s Great American Whiskey Collection auction—demonstrate continued consumer enthusiasm for high‑end spirits. The host concludes with three strategic recommendations: (1) prioritize brands that actively invest in the market with field support and consumer programs; (2) only take on new brands that present a clear re‑order plan, positioning, and field resources; and (3) protect and amplify core, revenue‑driving labels (e.g., Don Julio, key whiskeys, top RTDs, premium wines) while using new brands to add excitement without cannibalizing existing performance.
Chapters
Welcome to the DrinkUp Podcast Daily Industry Brief, where we break down what's happening in the beverage business and what it actually means for brands, distributors, and operators. Today's story is not that spirits and wine are dead and non-alc is taking over. Spirits just posted another record year in the US, roughly 306 million 9-liter cases, and still managed about 1% volume growth in a tough environment. That growth is coming from tequila, whiskey, and spirits-based RTDs, not from cheap handle vodka. Here's what's really moving. Surfside Spirits-based RTDs more than doubled to over 10 million cases and is now the number 3 spirits brand by volume in the country. Cutwater grew more than 40% last year. Don Julio was the only full-strength top 25 spirits brand to grow volumes, up 16% to just under 4 million cases, and it is now the number 1 spirits brand by retail value at around $2.8 billion. At the state level, the pattern holds. In Virginia, vodka is still number 1, but tequila is now the number 2 category by value, and ready-to-drink cocktails grew about 9.5% in volume, driven by brands like Buzzballs and Fireball's new Blazin' Apple Whiskey RTDs. That tells you drinkers aren't walking away from alcohol. They're trading into tequila, whiskey, and spirits RTDs that feel worth the money. Wine is tighter, but the profit story is real. Constellation says its wine and spirits division is basically holding depletion steady in the US while outperforming the broader wine category category on value, even though beer gets most of the headlines. Market outlooks for 2026 show US wine volumes flat to slightly down, but premium and luxury tiers, plus direct-to-consumer and tourism, are where the dollars still flow. In plain English, cheap, anonymous wine is struggling, but $20+ bottles, clubs, and tasting experiences are still paying the bills. And the culture side of spirits is very much alive. Suntory is getting attention for cross-country flavor work from Japan to Kentucky to Jalisco, including a tequila finished in Japanese whiskey casks. Sotheby's is running the Great American Whiskey Collection auction with more than 300 lots of rare US bottles, proving that high-end whiskey is still something people collect, talk about, and spend real money on. So what do you actually do with all of this if you're a distributor, supplier, or operator? First, bet on the brands that bet on you. If a tequila, whiskey, wine, or RTD brand is putting real boots on the ground in your market, showing up for ride-alongs, trainings, and reviews, and backing that up with consumer programs that create repeat orders and volume, those are the brands you lean into. Don't just chase what's loud on social, chase who is investing in your business. Second, give new brands a real shot only when they come with a plan. They need clear positioning, a defined lane to win in your market, people in the field, and marketing aimed at getting that second and third purchase, not just loading in a big first order. If they can't show you how they're going to earn reorders, they're not ready. Third, continue to protect and grow the brands that are paying the bills. That might be Don Julio, core whiskeys, key RTDs, and a tight set of higher-margin wines. Give them the best placements, the best features, and use the right new brands around them to add excitement, not to blow up what already works. When you talk to your team or when you share this with your accounts, you can frame today's brief like this. Spirits just had a record year driven by tequila, whiskey, and spirits RTDs that still have runway. Wine isn't dying. It's shifting into fewer, better, more profitable bottles and experiences. And your job in 2026 is simple. Double down on the brands that show up and perform for you. Give serious, well-supported newcomers a lane to prove it and keep backing the labels that are already paying the bills.
