Saudi Press

Saudi Arabia and the world
Tuesday, Nov 11, 2025

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

Saudi Press
0:00
0:00
Close
Trump Unveils Middle East Reset: Syria Re-engaged, Saudi Ties Amplified
Saudi Arabia to Build Future Cities Designed with Tourists in Mind, Says Tourism Minister
Saudi Arabia Advances Regulated Stablecoin Plans with Global Crypto Exchange Support
Saudi Arabia Maintains Palestinian State Condition Ahead of Possible Israel Ties
Chinese Steel Exports Surge 41% to Saudi Arabia as Mills Pivot Amid Global Trade Curbs
Saudi Arabia’s Biban Forum 2025 Secures Over US$10 Billion in Deals Amid Global SME Drive
Saudi Arabia Sets Pre-Conditions for Israel Normalisation Ahead of Trump Visit
MrBeast’s ‘Beast Land’ Arrives in Riyadh as Part of Riyadh Season 2025
Cristiano Ronaldo Asserts Saudi Pro League Outperforms Ligue 1 Amid Scoring Feats
AI Researchers Claim Human-Level General Intelligence Is Already Here
Saudi Arabia Pauses Major Stretch of ‘The Line’ Megacity Amid Budget Re-Prioritisation
Saudi Arabia Launches Instant e-Visa Platform for Over 60 Countries
Dick Cheney, Former U.S. Vice President, Dies at 84
Saudi Crown Prince to Visit Trump at White House on November Eighteenth
Trump Predicts Saudi Arabia Will Normalise with Israel Ahead of 18 November Riyadh Visit
Entrepreneurial Momentum in Saudi Arabia Shines at Riyadh Forward 2025 Summit
Saudi Arabia to Host First-Ever International WrestleMania in 2027
Saudi Arabia to Host New ATP Masters Tournament from 2028
Trump Doubts Saudi Demand for Palestinian State Before Israel Normalisation
Viral ‘Sky Stadium’ for Saudi Arabia’s 2034 World Cup Debunked as AI-Generated
Deal Between Saudi Arabia and Israel ‘Virtually Impossible’ This Year, Kingdom Insider Says
Saudi Crown Prince to Visit Washington While Israel Recognition Remains Off-Table
Saudi Arabia Poised to Channel Billions into Syria’s Reconstruction as U.S. Sanctions Linger
Smotrich’s ‘Camels’ Remark Tests Saudi–Israel Normalisation Efforts
Saudi Arabia and Qatar Gain Structural Edge in Asian World Cup Qualification
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
Fincantieri and Saudi Arabia Agree to Build Advanced Maritime Ecosystem in Kingdom
Saudi Arabia’s HUMAIN Accelerates AI Ambitions Through Major Partnerships and Infrastructure Push
IOC and Saudi Arabia End Ambitious 12-Year Esports Games Partnership
CSL Seqirus Signs Saudi Arabia Pact to Provide Cell-Based Flu Vaccines and Build Local Production
Qualcomm and Saudi Arabia’s HUMAIN Team Up to Deploy 200 MW AI Infrastructure
Saudi Arabia’s Economy Expands Five Percent in Third Quarter Amid Oil Output Surge
China’s Vice President Han Zheng Meets Saudi Crown Prince as Trade Concerns Loom
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
Wave of Complaints Against Apple Over iPhone 17 Pro’s Scratch Sensitivity
Syria Holds First Elections Since Fall of Assad
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
×