Whiskey sales took a hit last year

First, it was beer, now it’s whiskey. Despite a surge in sales during the pandemic, whiskey makers saw a 2.2% revenue decrease in the country in 2023, making $12.3 billion, per the Distilled Spirits Council.

The most hit is America’s beloved Jack Daniel’s Old No. 7. The liquor is experiencing declining demand, leading to a sluggish forecast for the US whiskey business.

Why?
Several factors, including rising prices, inflation, and a consumer shift towards alternative high-end whiskey brands and alcoholic beverages like tequila and canned cocktails, have contributed to the slump.

Sales of spirits-based ready-to-drink cocktails High Noon and Cutwater climbed 32% in stores in the 12 weeks ending in February compared to the same time last year, according to Goldman Sachs analysis of Nielsen data. 

Canned Jack and Coke represents a small piece of the category, with 2.5% of the sales in US stores.

To up the sales
The company behind Jack Daniel’s is targeting younger consumers with personalized labels, digital ads, and flavored versions like Jack Daniel’s Tennessee Apple and Tennessee Honey.

It is also focusing on its pricier offerings, such as Jack Daniel’s Single Barrel Barrel Proof, which saw a 60% increase in dollar sales in the first two months of 2024.