There have been some conflicting reports over the past year or two, but overall spirits corporations have been facing some tough times as sales have subsided from the heights reached during the worst times of the pandemic. And according to recent reports from corporate earnings calls, that is starting to extend even to the priciest spirits, a sector that was thought possibly to be immune to shifting consumer preferences. Of course it’s worth putting all of this into some perspective.
A downward trend for a multi-billion dollar corporation like LVMH is not good for shareholders, but it’s not like the board members are going to be moving into smaller mansions anytime soon. And the sales spike during the worst period of the pandemic came when people couldn’t go out to bars and restaurants, had a bit more disposable income because of that, and were looking for ways to self sooth by splurging on some high-end bottles. Still, according to a recent CNN article, companies like Remy Cointreau , Pernod Ricard , Proximo Spirits , and Anheuser-Busch have all reported declines in sales, equaling a downward shift of 3 percent over the first seven months of 2024.
According to CNN, the only alcohol category that continued to do well this year, relatively speaking, was the RTD sector which increased by 2 percent. “As the spirits industry continues to recalibrate following the extraordinary sales boost during the pandemic, inflation and high interest rates are slowing the growth of the.
