Pour Decisions Trend Report: U.S. Spirits Industry Faces Challenges Amidst Evolving Market Dynamics

Week of November 11–17, 2024

National Overview

The U.S. spirits industry continues to face evolving challenges, marked by shifting consumer preferences and an unpredictable economic climate. Recent data shows a 3% decline in overall spirits volumes, led by a slowdown in tequila sales, which had been a dominant growth category in previous years. However, bourbon and craft vodka continue to gain traction, driven by innovative marketing and a focus on artisanal production. (CSP Daily News)

This week, the Bartender Craft Fest in New Orleans highlighted emerging trends in mixology, such as molecular cocktails and nitrogen-infused drinks. Industry professionals praised the event for emphasizing sustainability, a growing priority in both on-premise and off-premise markets. Additionally, the rise of “mindful drinking” is driving interest in non-alcoholic spirits, with brands like Seedlip expanding their U.S. footprint.

We are seeing depletions accelerate in all markets this week. The sustained cocktail trend is the Espresso Martini. We are currently rolling out our supply of cold-brew, nitro espresso dispensers. On-premise clients should contact their Felene Representative to get a complimentary 4-liter dispenser. ([email protected]) -Kim Laderer-Veiga, President, Felene Inc.

New York

New York remains a critical market for the spirits industry, with its diverse consumer base and dynamic cocktail culture. Recent reports show the state’s spirits volumes have declined by less than 2%, outperforming the national average. This resilience highlights New Yorkers’ continued willingness to explore premium and craft spirits. (Ansira Blog)

On-Premise Trends

New York City bars are embracing bold mixology techniques. The “Dirty Dump” method, where cocktails are poured into the glass with all ingredients and ice unstrained, is redefining the texture and visual appeal of drinks. Bars like PDT (Please Don’t Tell) in Manhattan are leveraging this technique for trendy, Instagram-ready cocktails. The city’s mixologists are also experimenting with Asian spirits, such as Japanese shōchū and Chinese baijiu, reflecting the city’s multicultural influences. (NY Post)

Major Event: The city hosted the annual NYC Cocktail Gala, drawing bartenders and brand ambassadors from across the globe. Featured spirits included craft amaro and small-batch bourbons, catering to the growing demand for niche offerings.

Off-Premise Trends

Retailers across New York report strong sales in organic and sustainably produced spirits. Gift sets featuring New York craft gins are particularly popular as the holiday season approaches. RTDs also maintain a strong presence, with innovations like canned Negronis and espresso martinis driving sales. (Beverage Daily)

Florida

Florida’s spirits market remains dynamic, fueled by its tourism-driven economy and a penchant for tropical flavors. Despite national challenges, the state registered only a minor dip in spirits volumes, showing its resilience in the face of changing trends. (Ansira Blog)

On-Premise Trends

Florida’s vibrant nightlife, particularly in Miami, continues to be a hub for cocktail innovation. The “Snow Globe” cocktail, featuring clear ice encapsulating herbs and berries, has become a viral sensation. This festive drink, often presented with sparkling wine or gin bases, is dominating the menus of high-end bars like Sugar in Brickell. Miami’s rum culture is also flourishing, with bars expanding their offerings to include aged and spiced varieties. (The Sun)

Off-Premise Trends

Off-premise trends are heavily influenced by Florida’s warm climate and holiday season. Retailers are seeing a surge in sales for RTDs like tropical rum punches and mojito spritzers. High-proof spirits, often used in frozen cocktails, are also in demand as home bartenders seek convenience without compromising quality.

Texas

Texas is a growing hub for premium spirits, with consumers showing a strong preference for bold flavors and local craftsmanship. The state’s expanding economy and youthful demographic have contributed to rising demand for both classic and innovative beverages.

On-Premise Trends

The Austin cocktail scene is at the forefront of Texas’s bar culture. Mezcal has cemented its status as a key ingredient, with bars offering unique mezcal flights and agave-based cocktails. At Whisler’s, patrons can enjoy smoky mezcal mixed with freshly pressed juices, catering to a crowd eager for complexity and depth in their drinks. Houston, meanwhile, has seen a resurgence in whiskey-focused establishments, with curated tasting menus growing in popularity.

Off-Premise Trends

Off-premise sales remain robust, particularly for limited-edition products. Texas retailers note strong performance in bourbon gift sets, craft tequila, and premium vodka. Local distilleries like Balcones Distilling are capitalizing on their home-state advantage, offering small-batch releases that appeal to collectors. RTDs with bold flavors, such as chili mango margaritas, also resonate with Texas consumers.

California

California’s spirits market continues to set trends, reflecting the state’s cultural diversity and focus on sustainability. With a population eager to explore cutting-edge beverages, brands are innovating to capture this lucrative market.

On-Premise Trends

Los Angeles and San Francisco remain hotspots for mixology. Bars are showcasing unique pairings, such as baijiu-based cocktails with savory food items, appealing to adventurous drinkers. At Trick Dog in San Francisco, seasonal menus emphasize locally sourced ingredients, reinforcing the farm-to-glass movement. The state also hosted the Sustainable Spirits Festival in Napa Valley, spotlighting eco-friendly practices in distilling and packaging. (Thrillist)

Off-Premise Trends

California consumers are increasingly drawn to organic spirits and non-alcoholic alternatives. Retailers report a 15% uptick in sales of zero-proof options, reflecting a growing interest in wellness. Additionally, RTDs featuring sustainable packaging, such as compostable cans, are gaining popularity in the state’s environmentally conscious markets.

Colorado

Colorado stands out as a hub for craft spirits, with its consumers favoring local, artisanal brands. The state’s natural resources and commitment to sustainability play a significant role in shaping its spirits landscape.

On-Premise Trends

Denver’s bars are leaders in the “farm-to-glass” movement. Establishments like Death & Co Denver are creating cocktails with locally sourced ingredients, such as lavender and mountain herbs. Bartenders are also introducing vodka-based infusions, reflecting a growing appreciation for subtle, botanical flavors.

Major Event: The Rocky Mountain Spirits Showcase featured Colorado’s top distilleries, highlighting innovations in vodka and whiskey production.

Off-Premise Trends

Off-premise sales for Colorado-crafted spirits remain strong, with consumers gravitating toward Felene Vodka’s clean, additive-free formula. Retailers are also seeing interest in flavored vodkas like blood orange and coconut-lime, which appeal to home bartenders looking for versatility.

Trending Cocktail Recipe: The Black Manhattan

The Black Manhattan is making a comeback this season, offering a modern twist on the classic Manhattan. This cocktail substitutes sweet vermouth with amaro, such as Averna or Amaro Nonino, adding a bittersweet depth to the drink. Garnish with a Luxardo cherry for a polished finish. (Food & Wine)

This report captures the pulse of the U.S. spirits market, blending data-driven insights with colorful anecdotes from key regions. Stay tuned for next week’s Pour Decisions!