PanamaTimes

Sunday, Oct 25, 2026

Covid-19 lockdowns spur shift to high-end liquor

Covid-19 lockdowns spur shift to high-end liquor

U.S. sales of spirits such as tequila and whiskey have grown at the fastest pace in decades as more Americans drink at home

Americans are splashing out on pricier whiskey, tequila and other spirits during the pandemic, helping distillers post their strongest sales in four decades despite widespread bar closures.

People who can’t spend on concerts, travel and watching live sports are splurging instead on high-end spirits to drink at home, say alcohol executives. That drove U.S. distillers’ revenue up 7.7% to $31.2 billion last year, according to the Distilled Spirits Council—or DISCUS—a trade body. It said the figures marked the fastest growth and highest sales for at least 40 years.

“Consumers’ behavior has shifted as a result, in part, of certain things they’re unable to do or not do to the same degree,” said Kathryn Mikells, finance chief of Johnnie Walker maker Diageo PLC. “They’re spending more money on food and beverage. They’re interested in treating themselves.”

Spirits costing above $40 per 750 milliliters accounted for 40% of the U.S. spirits industry’s growth last year, compared with 34% in 2019, according to DISCUS. High-end liquors are among the most profitable spirits for alcohol makers.

The trend toward premium products is reflected across the wider consumer-goods industry as many Americans use their disposable income differently. Pricier household cleaners, candles, spaghetti and paper towels have sold strongly, according to research firm IRI. Procter & Gamble Co. recently said its quarterly sales were helped by pricey dish detergent and a $300 electric toothbrush. Retailers like Neiman Marcus Group Inc., Saks Fifth Avenue and Macy’s Inc. have flagged a similar jump in spending on things like high-end handbags and jewelry.

Liquor giant Diageo on Thursday reported a big jump in U.S. spirit sales for the second half of 2020, driven by higher-end booze. Its tequila brands Don Julio and George Clooney -founded Casamigos—both of which sell for about $50 a 750 milliliter bottle—grew North America sales by 55% and 137%, respectively.

Tequila has benefited from the shift to at-home drinking as Americans increasingly drink the spirit in more ways, including on the rocks, with soda and in cocktails beyond margaritas, Ms. Mikells said.

Unlike in Europe and other parts of the world, Americans have long drunk more at home. Even before the pandemic, four out of every five alcoholic drinks in the U.S. were bought in liquor stores, supermarkets and other “off premise” channels, rather than in bars and restaurants. That trend has accelerated.

“Things that were really firing before Covid have picked up really strongly, and tequila has benefited from that,” Ms. Mikells said.

Spirits volumes in nine-liter cases—a standard industry measure—climbed 5.3% last year, up from growth of 3.3% in 2019, according to DISCUS. Total beverage alcohol sales by volume grew 3%, indicating Americans bought more booze overall last year.

American whiskey sales rose 8.2%, cognac grew 21% and tequila and mezcal combined jumped 17%, according to the DISCUS figures, which reflect overall industry numbers.

Sales of ready-to-drink cocktails surged 39%, which executives said was driven by at-home entertaining, new product launches and a desire for convenience.

However, a continuing dispute with Europe that has seen the U.S. slap a 25% tariff on imports of single malt scotch took the shine off the spirit, with revenue dropping 2.1%.

Through the pandemic, the spirits industry accelerated its previous share gains over beer and wine. While sales of sparkling wines have done well, still wine—a popular buy at restaurants—has declined, industry tracker IWSR said. Beer also has suffered partly because of a shortage of aluminum cans, an interruption to brewing in Mexico and out-of-stock issues in addition to the closure of bars, it added.

“The gap has gotten wider in spirits’ favor,” Lawson Whiting, chief executive of Jack Daniels owner Brown-Forman Corp. , said in December.

Like Diageo, Brown-Forman said it has seen pricier products under its Woodford Reserve and Old Forester bourbon brands grow strongly.

“This has been unlike any other recession that we’ve experienced,” Mr. Whiting said. “In the U.S., ultra- and superpremium spirits are gaining share at faster rates than in the pre-Covid time periods.”

Consumers stuck at home are also buoying e-commerce alcohol sales. Online alcohol retailer Drizly in January said its annual sales grew 350% from a year earlier.

Diageo, which lists a larger percentage of pricey brands online than in stores, is marketing its spirits online as indulgent treats and gifts. The company has invested in direct-to-consumer sales through its sites for Haig Club and Malts.com and said it has also increased the availability and visibility of its brands for sale online.

Distillers have benefited from law changes in many states allowing restaurants and bars to, for the first time, offer cocktails for home delivery or click-and-collect. Ohio and Iowa last year both moved to make their cocktails-to-go measures permanent. DISCUS, which has joined forces with restaurant trade associations, is lobbying for others to do the same.

“We believe if some of these are made permanent, they can really be part of the economic recovery to help restaurants, bars, taverns and craft distilleries,” said DISCUS CEO Chris Swonger.

Whether the pricey booze trend outlasts the pandemic remains to be seen. As venues reopen, executives expect people to socialize less at home and shift their disposable income. The large volume of spirits currently sitting in pantries could dampen sales in the months to come.

Still, Pernod Ricard SA’s North America head Ann Mukherjee says the Chivas Regal whiskey owner is betting that interest in making high-end cocktails or sipping a fine cognac at the end of a night will stick.

“Consumer palates have opened up, and many have figured out how to make cocktails at home,” she said, pointing to recent strong demand for Pernod’s coffee liqueur, Kahlua, as a cocktail ingredient. “The bar for bars has become a lot higher.”

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Advertising trick: Pepsi’s Harrier Jet Commercial Led to a $700,000 Court Fight
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Trump’s Top General Seeks an Exit Strategy From Iran War, Report Says
Brock Lesnar Retires From Wrestling, Closing a Career of Rare Athletic Range and Lasting Controversy
Trump-Era Policy Shifts Test the Boundaries of U.S. Institutions
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Breaking With the Past: One of the World’s Smallest Countries Changes Its Name
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Cuba’s Grid Fails Again as Fuel Crisis Deepens
Nazca Lines Flight Crash Kills Thirteen as Peru Suspends Aerodiana
OpenAI Faces Demands for Full Disclosure After Models Breach Hugging Face
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Why Americans Queue for $15 Ice Cream and a $100 Caviar Pint
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Spain Defeats Argentina in Extra Time to Win Second World Cup
Venezuela’s Earthquake Devastation Turns U.S. Investment Opportunity Into a Thirty-Seven Billion Dollar Reconstruction Challenge
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The AI Race Enters Its Infrastructure Era
Colombia Influencer Dies After Cosmetic Procedure at Unlicensed Bogota Salon
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
On the Island That Did Not Yield to Trump, There Is No Electricity, and 10 Million Live in Darkness
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
×