NEW YORK--(BUSINESS WIRE)--The devastating impact of the retaliatory tariffs on distilled spirits products is accelerating, threatening to upend the decade of growth in the U.S. spirits sector, the Distilled Spirits Council of the United States (DISCUS) reported today at its annual economic briefing for media and analysts.
“While it was another strong year for U.S. spirits sales, the tariffs imposed by the European Union are causing a significant slump in American Whiskey exports,” said DISCUS President and CEO Chris Swonger.
“The data is clear. These tariffs are chipping away at American Whiskey’s brand equity in our top export markets. These great American Whiskey products that have been the toast of the global cocktail scene are struggling under the weight of the EU tariffs.”
In the United States, supplier sales were up 5.3 percent in 2019, rising $1.5 billion to a record total of $29 billion, while volumes rose 3.3 percent to a record 239 million cases, up 7.6 million cases from the prior year, Swonger said.
In 2019, spirits gained market share versus beer and wine with sales rising half of a point to 37.8 percent of the total beverage alcohol market. This represents the 10th straight year of market share gains for spirits overall, where each point of market share is worth $770 million in supplier sales revenue.
“We are now gravely concerned that the U.S. tariffs on EU spirits imports will have the same deleterious effect in the United States,” said Swonger. “If this trade dispute is not resolved soon, we will more than likely be reporting a similar drag on the U.S. spirits sector, jeopardizing American jobs and our record of solid growth in the U.S. market.”
- NEW DATA: TARIFFS DAMAGE AMERICAN WHISKEY BRAND ACROSS THE GLOBE
- U.S. SPIRITS CONSUMERS CONTINUE TO GRAVITATE TO HIGH-END AND SUPER PREMIUM PRODUCTS
- 2019 POLICY WINS: EXTENSION OF FEDERAL EXCISE TAX CUT AND INCREASED CONSUMER ACCESS TO SPIRITS
- IMPORTANT GAINS IN SOCIAL RESPONSIBILITY CONTINUE