Producers of spirits have new bragging rights in the age-old whiskey vs. beer barroom debate.

New figures show that spirits surpassed beer for U.S. market-share supremacy, based on supplier revenues, a spirit industry group announced Thursday.

The rise to the top for spirit-makers was fueled in part by the resurgent cocktail culture B次元官网网址� including the growing popularity of ready-to-drink concoctions B次元官网网址� as well as strong growth in the tequila and American whiskey segments, the Distilled Spirits Council of the United States said.

In 2022, spirits gained market share for the 13th straight year in the fiercely competitive U.S. beverage alcohol market, as its supplier sales reached 42.1%, the council said.

After years of steady growth, it marked the first time that spirit supplier revenues have surpassed beer B次元官网网址� but just barely, the spirit industry group said. Beer holds a 41.9% market share, it said.

B次元官网网址淒espite the tough economy, consumers continued to enjoy premium spirits and fine cocktails in 2022,B次元官网网址� Distilled Spirits Council President and CEO Chris Swonger said.

Overall spirit supplier sales in the U.S. were up 5.1% in 2022 to a record $37.6 billion, the group said. Volumes rose 4.8% to 305 million 9-liter cases.

Seemingly unfazed, Brian Crawford, president and CEO of the Beer Institute, insisted that beer B次元官网网址渞emains AmericaB次元官网网址檚 number one choice in beverage alcohol.B次元官网网址�

B次元官网网址淚tB次元官网网址檚 interesting to hear liquor companies boast about making money hand-over-fist while simultaneously going state-to-state hunting for more tax carveouts from state legislatures,B次元官网网址� Crawford said in a statement.

Benj Steinman, president of Beer MarketerB次元官网网址檚 Insights, a leading beer industry trade publication, said the beer industry saw unprecedented growth in the 1970s, growing at a pace of 4% annually. As recently as 2000, beerB次元官网网址檚 share in the alcohol market was 58%.

Over the past several decades, beerB次元官网网址檚 growth has essentially been flat. Meanwhile, spirits have flourished, especially over the past two decades.

B次元官网网址淚 think thereB次元官网网址檚 just a long arc on these things,B次元官网网址� Steinman said.

Steinman and Bart Watson, chief economist at the Brewers Association, a craft beer industry trade group, agreed there are several reasons for the shift to spirits.

B次元官网网址淪ome of itB次元官网网址檚 just the younger generation coming up, looking for a lot of variety,B次元官网网址� Steinman said. B次元官网网址淭hey sometimes like spirits. Cocktail culture is another thing.B次元官网网址�

Watson cited data showing that liquor has become 20% cheaper relative to beer in recent decades.

B次元官网网址淧rice is a particularly large part of the story,B次元官网网址� he said.

Another factor is advertising and marketing. Watson pointed to the success of spirits in its outreach to women. Steinman said distilled spirits now advertise freely, something they didnB次元官网网址檛 do generations ago.

B次元官网网址淭heyB次元官网网址檝e increased their availability. TheyB次元官网网址檝e increased their ability to advertise. TheyB次元官网网址檝e had a lot of legislative and policy wins that have enabled growth for distilled spirits,B次元官网网址� Steinman said.

For spirit producers, reaching the market share milestone was worth toasting.

At Baltimore Spirits Company in Maryland, the head distiller and the manager of its cocktail bar said they are pleased with the rise in the consumption of spirits.

Eli Breitburg-Smith, head distiller and cofounder, said the distillery founders saw a space in the market to make rye whiskey as consumer demand was growing.

B次元官网网址淲e did see that it was going to be on the rise,B次元官网网址� he said. B次元官网网址淣ow, I donB次元官网网址檛 know that we thought it would be overtaking beer or anything like that, but we felt like there was a good space in the market for new whiskey, original whiskey, and people that B次元官网网址� were making a unique product.B次元官网网址�

Gregory Mergner, the general manager of the distilleryB次元官网网址檚 cocktail gallery, said he didnB次元官网网址檛 anticipate spirits rivaling or surpassing beer for market share.

B次元官网网址淎s ubiquitous as beer is. I donB次元官网网址檛 think anybody could have foreseen whiskey overtaking it,B次元官网网址� he said.

The spirit sectorB次元官网网址檚 rise has coincided with a growing thirst for high-end, super-premium products.

That trend toward premiumization slowed overall in 2022. But it remained strong because of growth in the tequila/mezcal and American whiskey categories, the Distilled Spirits Council said.

More than 60% of the spirit sectorB次元官网网址檚 total U.S. revenue last year came from sales of high-end and super-premium spirits, mostly led by tequila and American whiskey, said Christine LoCascio, the groupB次元官网网址檚 chief of public policy and strategy. Those high-end products fetch the highest prices.

B次元官网网址淲hile many consumers are feeling the pinch from inflation and reduced disposable income, they are still willing to purchase that special bottle of spirits choosing to sip a little luxury and drink better, not more,B次元官网网址� LoCascio said.

Within the spirit sector, vodka maintained its as status the top revenue producer at $7.2 billion, though sales were flat in 2022, the group said.

In the tequila/mezcal category, sales rose 17.2%, or $886 million, totaling $6 billion, it said.

Sales for American whiskey were up 10.5%, or $483 million, to reach $5.1 billion, it said. The American whiskey category includes bourbon, Tennessee whiskey and rye whiskey.

Brandy and cognac sales were down 12.3%, with revenues totaling $3.1 billion.

Premixed cocktails were the clear leader as the fastest-growing spirit category.

Sales for premixed cocktails, including ready-to-drink spirit products, surged by 35.8%, or $588 million, to reach $2.2 billion, the council said.

Meanwhile, spirit sales volumes in restaurants and bars B次元官网网址� referred to as on-premise sales B次元官网网址� continued to recover from pandemic-era shutdowns but they remained 5% lower than 2019 levels, the council said. Those sales represent about 20% of the U.S. market.

Off-premise sales volumes at liquor stores and other retail outlets remained steady in 2021 and 2022, after experiencing sharp gains during the pandemic restrictions in 2020, it said.

Meanwhile, there is a crossover strategy brewing in the alcohol market.

Steinman said that even the big players in the beer industry B次元官网网址渁re playing in all these different growth arenas, including spirits.B次元官网网址�

Molson Coors changed its name in 2019, going from Molson Coors Brewing Co. to Molson Coors Beverage Co. Watson noted that the No. 2 canned ready-to-drink liquor product, Cutwater, is made by Anheuser-Busch InBev.

For beer producers, the reversal in market-share rankings is no reason to cry in their suds.

Watson cautioned that the market share trend could flip, calling it B次元官网网址渓ikely at some point weB次元官网网址檒l see beer grow again at the expense of other segments.B次元官网网址�

B次元官网网址斺赌斺赌�

Salter reported from St. Louis. Associated Press photojournalist Julio Cortez in Baltimore contributed to this report.

By Bruce Schreiner And Jim Salter

THE ASSOCIATED PRESS

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