High-priced Spirits gain share as consumers trade up in US Bars, Clubs and Restaurants

Premiumization remains, at the expense of Mid & Value

Gains have come at the expense of lower-priced spirits, the research reveals. Value brands accounted for 17.3% of spirits volumes—a year-on-year drop of 0.2 percentage points—while mid-priced products shed 0.5 percentage points to stand at 22.0%.

The Ultra category’s growth was being powered by increased distribution, with nightclubs achieving a particularly large increase in share of 2.2 percentage points. Casual Dining and Bars were among other Ultra winners, taking 0.5 and 0.4 percentage points respectively.

Ultra share gain in Nightclubs

NIQ’s OPM solution also provides extensive spirit-by-spirit breakdowns, highlighting a stellar year for Tequila in the Ultra tier. This spirit stole 3.7 percentage points of Ultra volumes in the year to mid-May, and its RoS increased. In doing so, Tequila took volumes from other segments like Gin, Whiskey, and Cordials, which all lost slices of total Ultra volumes..

Meanwhile, state-by-state analysis indicates that the largest market for Ultra spirits is California, where they command 9.7% of total volumes—a year-on-year increase of 0.3 percentage points.

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Matthew Crompton, VP – Americas, On-Premise, said: “Although overall volume is down for higher-priced spirits, Ultra and Premium segments are gaining share, driven by Tequila and the premium influence in nightlife venues. Nevertheless, value and mid-tier options remain a vital part of the landscape, and optimizing assortments in bars, clubs and restaurants is crucial. For suppliers and operators, this trend signals a critical opportunity to align portfolios, pricing, and distribution strategies with evolving consumer preferences and premiumization momentum.”