2024 Top 100 Importers & Exporters
Despite the broad decline , however , Leavitt said demand for certain categories of imported wines , including New Zealand Sauvignon Blancs and organic wines , is rising . US importers brought 14.5 million liters of organic white wines from New Zealand into the country last year , a more than four-fold increase from the 3.3 million liters imported in 2022 , according to data from the US Census Bureau .
An ‘ affordable luxury ’?
A sharp drop in brandy demand also helped drive the overall decline . Imports of high-end grape brandy fell 48 % to 34.3 million proof liters last year , according to Census data . By dollar value , that ’ s a shortfall of nearly $ 1 billion .
Bernard Arnault , CEO of luxury conglomerate LVMH , which produces the Moët champagne and Hennessy cognac brands , noted the weakness in overseas markets during the company ’ s
Alcoholic beverages
IMPORTS
385,385 TEUS
↓17.7 %
Change from 2022
↓3.6 %
5-year compound annual growth rate
Heineken USA annual earnings call in January . LVMH ’ s wine and spirits division saw “ slight difficulty in the US market , in particular with cognac ,” he said .
Tobiassen said that over the past few years , distillers had capitalized on marketing high-end spirits as an “ affordable luxury ” for everyday consumers . The trend of drinking premium brands at home during the pandemic also helped boost sales .
But with inflation a growing concern for many consumers — and distillers largely holding firm on price increases — US demand for high-end alcohol may have reached its limit , Tobiassen said . The per-liter value of high-end brandy imported to the US from France , for example , rose to $ 36.13 in 2023 from $ 30.80 in 2019 , Census data shows .
“ The spirits industry has done a good job of making their product into an affordable luxury ,” Tobiassen said . “ But inflation might take some of that away .”
WSSA ’ s Leavitt said cognac demand has also suffered because “ tequila now is the drink that celebrities are choosing ” and consumers are following that lead .
While tequila mostly moves by truck and rail , Leavitt said the frequent border delays and the risk of theft has driven North American importers to consider ocean shipping . Container carrier Crowley and Canadian National Railway launched a short-sea service from Mexico to the port of Mobile last year , while Zim Integrated Shipping will also call Mexico ’ s east coast on a new South America service starting this year .
Despite the uneven performance within certain categories of wine and spirits , Leavitt said importers and distributors appear to be getting a better handle on inventories ,
Alcohol imports snap 12-month yoy decline in February
Monthly containerized US alcoholic beverage imports , in laden TEUs , with year-overyear percentage change
TEU volume
10 %
39,608 40,000 10 %
30,000 10,000 20,000
10,000
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Jan L2022 Apr |
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Jan 2023 |
AprJun , 2023
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Source : PIERS , S & P Global
TEU
Year-over-year % change
and there are other trends that suggest some inventories will need restocking in 2024 . A resurgent travel industry , for example , will continue to boost demand from cruise ship operators and duty-free shops . Alcoholic beverage imports ticked up 0.9 % in the first quarter but remained 4.8 % below the same 2022 period , according to PIERS .
Outside of the US , China ’ s tepid economy has slowed demand for high-end distilled spirits . Yet the country ’ s move to drop a 200 % tariff on Australian wines should restart trade in that category , she added .
“ The spirits industry has done a good job of making their product into an affordable luxury . But inflation might take some of that away .”
The supply chain has largely healed with few impediments to securing containers and vessel space for wine and spirits imports , Leavitt said . But extreme weather is playing havoc with some of the smaller ports that serve the industry .
Flooding in New Zealand ’ s South Island impacted the Port of Nelson , forcing carriers to skip calls there . Scotland ’ s Port of Grangemouth , too , has been affected by bad weather .
Rains also closed the road from Mendoza , Argentina , to Chile ’ s Port of San Antonio , affecting some of the wine exports going through that gateway .
“ Extreme weather impacts the industry on both the agriculture side and the shipping side ,” Leavitt said .
email : michael . angell @ spglobal . com
0 %
-40 -10%
-20 %
-30 %
Year-over-year % change
© 2024 S & P Global
42 Journal of Commerce | May 20 , 2024 www . joc . com