Beautiful Virgin Islands

Friday, Feb 20, 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

Beautiful Virgin Islands
0:00
0:00
Close
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Former Student Files Civil Claim Against UK Authorities After Rape Charges Against Peers Are Dropped
Archer Aviation Chooses Bristol for New UK Engineering Hub to Drive Electric Air Taxi Expansion
UK Sees Surge in Medical Device Testing as Government Pushes Global Competitiveness
UK Competition Watchdog Flags Concerns Over Proposed Getty Images–Shutterstock Merger
Trump Reasserts Opposition to UK Chagos Islands Proposal, Urges Stronger Strategic Alignment
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Liberal Senator Michaelia Cash Accuses Prime Minister of Lying to Australians
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
A Lunar New Year event in Taiwan briefly came to a halt after a temple official standing beside President Lai Ching‑te suddenly vomited, splashing Lai’s clothing
Jillian Michaels reveals Bill Gates’ $55 million investment in mRNA vaccines turned into over $1 billion.
Ex-Prince Andrew Mountbatten-Windsor's arrested
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Four Chagos Islanders Establish Permanent Settlement on Atoll
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
UK Inflation Slows Sharply in January, Strengthening Case for Bank of England Rate Cut
Hide the truth, fake the facts, pretend the opposite, Britain is as usual
UK Inflation Falls to Ten-Month Low, Markets Anticipate Interest Rate Cut
UK House Prices Climb 2.4% in December as Market Shows Signs of Stabilisation
BAE Systems Predicts Sustained Expansion as Defence Orders Reach Record High
Pro-Palestine Activists Cleared of Burglary Charges Over Break-In at UK Israeli Arms Facility
Former Reform UK Councillors Form New Local Group Amid Party Fragmentation
Reform UK Pledges to Retain Britain’s Budget Watchdog as It Seeks Broader Economic Credibility
Miliband Defends UK-California Clean Energy Pact After Sharp Criticism by Trump
University of Kentucky to Host 2026 Summer Camps Fair Connecting Families with Local Programmes
UK Police Forces Assess Claims Jeffrey Epstein Used Stansted Airport Flights in Trafficking Network
UK-Focused Equity ETF FLGB Climbs to Fresh 52-Week Peak on Strong Market Sentiment
Trump Warns UK’s Chagos Islands Agreement Is a “Big Mistake” Amid Strategic Security Debate
Trump Urges UK to Retain Sovereignty Over Diego Garcia Amid Strategic Concerns
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
Reform UK Appoints Former Conservative Minister Robert Jenrick as Finance Chief
UK Unemployment Rises to Highest in Nearly Five Years as Labour Market Weakens
Rupert Lowe Advocates for English-Only Use in the UK
US Successfully Transports Small Nuclear Reactor from California to Utah
South Korea's traditional sand wrestling sport ssireum faces declining interest at home
Japan outlawed Islam
Virginia Giuffre accuses Epstein of trafficking to powerful men for blackmail.
New Mexico lawmakers initiate investigation into Zorro Ranch linked to Jeffrey Epstein
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
Nigel Farage Names Reform UK Frontbench Team and Signals Zero Tolerance for Internal Dissent
Qualcomm to Withdraw UK Lawsuit Over Smartphone Chip Royalty Dispute
Major UK Banks Explore Domestic Card Network to Rival Visa and Mastercard
Cold Health Alert Issued Across UK as Temperatures Drop Sharply
Nine-Year-Old Becomes First Child in UK to Undergo Groundbreaking Leg-Lengthening Surgery
UK Workers Face Stagnant Incomes and a Softening Labour Market as Unemployment Climbs
UK Passport Rules Tightened for British Dual Nationals Under New Travel Guidance
California Deepens Global Climate Alliance with New UK Pact and Major Clean-Tech Investment Drive
UK Supreme Court Tightens Rules on Use of ‘Milk’ and ‘Cheese’ Labels for Plant-Based Products
University of Kentucky Postpones Feb. 19 Law Enforcement Training Exercise in Lexington
×