Tariffs would be 'catastrophic' for sales of tequila and mezcal, industry group says
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The U.S. spirits industry maintained its market share leadership over beer and wine for a third straight year in 2024, even as revenues slid, according to new data released Tuesday. Limited time: Save 25% on NBC News subscription Get exclusive reporting, live Q&As and ad-free reading. Spirits supplier sales in the U.S. fell 1.1% last year to a total of $37.2 billion, while volumes rose 1.1%, according to the annual U.S. economic report from the Distilled Spirits Council, a leading trade organization.
AI Summary
Main Idea: The Trump administration’s delay of Mexico tariffs is raising fears in the spirits industry, which says new duties could badly hurt tequila and mezcal sales.
Key Points:
- U.S. spirits sales fell 1.1% in 2024 to $37.2 billion, the first revenue drop for the category in more than 20 years.
- Even with the decline, spirits still led beer and wine in market share for the third year in a row.
- Tequila and mezcal were the only spirits category to grow last year, with sales up 2.9% to $6.7 billion.
- Industry leaders say tariffs on Mexican imports would be a “catastrophic” blow and could worsen pressure from high prices and interest rates.
Impact on the People
Negative Impact
Trump administration tariffs on tequila and mezcal could raise prices for consumers, hurt small distillers and importers, and slow sales in bars and stores.
Positive Impact
No clear positive impact identified.
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Candidate Entities4 candidates · 5 weighted vote min · 70% decision
- President and CEO Chris SwongerpersonMajorAI selected
Named leader of the Distilled Spirits Council whose warnings about tariffs and consumer spending are a major part.
Include 0 (0%)Ignore 0 (0%)5 to threshold - KOVAL DistillerycompanyContextCandidate
Named distillery used as a supporting example of how tariffs affect craft producers and international sales.
Include 0 (0%)Ignore 0 (0%)5 to threshold - Sonat Birnecker HartpersonContextCandidate
Named president and founder of KOVAL Distillery quoted about tariff damage to craft distillers.
Include 0 (0%)Ignore 0 (0%)5 to threshold - United StatescountryContextCandidate
Core market where spirits sales, imports, and tariff effects are being discussed.
Include 0 (0%)Ignore 0 (0%)5 to threshold
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