Saudi Press

Saudi Arabia and the world
Thursday, Dec 04, 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
As Trump Deepens Ties with Saudi Arabia, Push for Israel Normalization Takes a Back Seat
Thai Food Village Debuts at Saudi Feast Food Festival 2025 Under Thai Commerce Minister Suphajee’s Lead
Saudi Arabia Sharpens Its Strategic Vision as Economic Transformation Enters New Phase
Saudi Arabia Projects $44 Billion Budget Shortfall in 2026 as Economy Rebalances
OPEC+ Unveils New Capacity-Based System to Anchor Future Oil Output Levels
Will Saudi Arabia End Up Bankrolling Israel’s Post-Ceasefire Order in Lebanon?
Saudi Arabia’s SAMAI Initiative Surpasses One-Million-Citizen Milestone in National AI Upskilling Drive
Saudi Arabia’s Specialty Coffee Market Set to Surge as Demand Soars and New Exhibition Drops in December
Saudi Arabia Moves to Open Two New Alcohol Stores for Foreigners Under Vision 2030 Reform
Saudi Arabia’s AI Ambitions Gain Momentum — but Water, Talent and Infrastructure Pose Major Hurdles
Tensions Surface in Trump-MBS Talks as Saudi Pushes Back on Israel Normalisation
Saudi Arabia Signals Major Maritime Crack-Down on Houthi Routes in Red Sea
Italy and Saudi Arabia Seal Over 20 Strategic Deals at Business Forum in Riyadh
COP30 Ends Without Fossil Fuel Phase-Out as US, Saudi Arabia and Russia Align in Obstruction Role
Saudi-Portuguese Economic Horizons Expand Through Strategic Business Council
DHL Commits $150 Million for Landmark Logistics Hub in Saudi Arabia
Saudi Aramco Weighs Disposals Amid $10 Billion-Plus Asset Sales Discussion
Trump Hosts Saudi Crown Prince for Major Defence and Investment Agreements
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
Riyadh Metro Records Over One Hundred Million Journeys as Saudi Capital Accelerates Transit Era
Trump’s Grand Saudi Welcome Highlights U.S.–Riyadh Pivot as Israel Watches Warily
U.S. Set to Sell F-35 Jets to Saudi Arabia in Major Strategic Shift
Saudi Arabia Doubles Down on U.S. Partnership in Strategic Move
Saudi Arabia Charts Tech and Nuclear Leap Under Crown Prince’s U.S. Visit
Trump Elevates Saudi Arabia to Major Non-NATO Ally Amid Defense Deal
Trump Elevates Saudi Arabia to Major Non-NATO Ally as MBS Visit Yields Deepened Ties
Iran Appeals to Saudi Arabia to Mediate Restart of U.S. Nuclear Talks
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
Lawmaker Seeks Declassification of ‘Shocking’ 2019 Call Between Trump and Saudi Crown Prince
US and Saudi Arabia Forge Strategic Defence Pact Featuring F-35 Sale and $1 Trillion Investment Pledge
Saudi Sovereign Wealth Fund Emerges as Key Contender in Warner Bros. Discovery Sale
Trump Secures Sweeping U.S.–Saudi Agreements on Jets, Technology and Massive Investment
Detroit CEOs Join White House Dinner as U.S.–Saudi Auto Deal Accelerates
Netanyahu Secures U.S. Assurance That Israel’s Qualitative Military Edge Will Remain Despite Saudi F-35 Deal
Ronaldo Joins Trump and Saudi Crown Prince’s Gala Amid U.S.–Gulf Tech and Investment Surge
U.S.–Saudi Investment Forum Sees U.S. Corporate Titans and Saudi Royalty Forge Billion-Dollar Ties
Elon Musk’s xAI to Deploy 500-Megawatt Saudi Data Centre with State-backed Partner HUMAIN
U.S. Clears Export of Advanced AI Chips to Saudi Arabia and UAE Amid Strategic Tech Partnership
xAI Selects Saudi Data-Centre as First Customer of Nvidia-Backed Humain Project
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
President Trump Hosts Saudi Crown Prince Mohammed bin Salman in Washington Amid Strategic Deal Talks
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
×