Off-premise spirits sales hit $21.1 billion in 2023 according to market research firm NIQ. Spirits dollars, excluding ready-to-drink cocktails, remained flat with volume down, showing the significant contribution of canned cocktails to the category.
Excluding RTDs, spirits accounted for nearly a quarter of off-premise dollar sales, which reached $89.8 billion last year, a 1.1% increase compared to 2022. Spirits were up 0.1% in value and down 2.2% in volume in the last 52 weeks ending December 30 compared to the previous year’s period.
Those numbers look more positive when RTDs are in the picture: including the segment, spirits were up 2.7% and volume rose 5% compared to the same year-end period.
Food and convenience channels were the major drivers last year for spirits, with share of dollars at food channels up 2.7% and convenience channels up 12.7% compared to last year, and up 5.1% and 19.1% respectively in share of volume.
Whiskey and Tequila Lead Spirits Growth
Apart from spirits RTDs, tequila and whiskey are showing positive trends compared to 2022. At the end of the year, segments in order of dollar share were:
- Vodka (20.3%, -0.6%)
- Whiskey (18.3, +2.8)
- Tequila (13.9%, +5.1)
- Canadian Whiskey (7.9%, -1.4%)
- Ready-to-Drink (8%, +44.2%)
- Cordials (7.4%, +3.2%)
- Scotch (5.9%, -4.8%
- Rum (5.8% -3.6%)
- Cognac (4%, -10.4%)
- Gin (2.7%, -1.9%
- Irish Whiskey (2.6%, -1.3%)
- Brandy (1.4%, -4.0%)
- Ready-to-Serve (1.4%, 4.9%)
- All other (0.4%, -1%)
- Non-Alc spirits (0.1%, +92.3%)
Premium Share Resilient
Despite luxury spirits facing a dip, the premium-plus share of spirits still showed resilience, representing 69% of dollar share and 48% of volume share, both flat versus 2021. Without RTDs, the premium-plus share dips to 65% in value, 38% in volume, down 1% and 2% respectively versus 2021, showing that the premium-plus shopper repertoire now includes RTDs.
RTD Launches Drive Innovation Dollars, Spirits Lead Innovation Items
Total alcohol innovation sales reached $2.61 billion in 2023, a -13.7% decline compared to 2022, and half of innovation dollars were driven by ready-to-drink (RTD) launches.
Spirits accounted for 16% of innovation dollar sales, trailing RTDs (which accounted for half) and beer. But the spirits category accounted for 33% of innovation items, leading the way, followed by RTDs (26%) and wine (25%).
Read more on NIQ’s predictions from coverage of the firm’s end-of-year webinar and a deeper dive on RTD performance.