ADOBE EXPRESS
U.S. craft spirits sales fell for the third consecutive year in 2025, the American Craft Spirits Association (ACSA) announced last week. Sales slipped 3.7% to $7.3 billion, with annual volume down 8% to 11.7 million 9-liter cases. The number of actively operating U.S. craft distillers fell to 2,131 through August 2026, marking the first time distillery closures exceeded openings.
However, the number of active U.S. craft distillers is still slightly higher than in 2019, when it was at 2,046. Today, sales volume and value are significantly higher than in 2019, when volume stood at 9 million cases, and value was just $4.8 billion. But the growth rates in those boom days (+25.5% by volume and +27% by value) were far higher.
Looking back even further, there were 1,315 active craft distillers in the U.S. in 2015. Volume was just 4.9 million cases, valued at $2.4 billion. The growth rates were torrid, but from that much smaller base: 27.4% by volume and 27.9% by value between 2010 and 2015.
Getting Craft to Market
Craft spirits’ share of total U.S. spirits volume dipped to 4.2%, and 7.3% by value last year, down slightly from a year earlier. Small producers still struggle to get their products to market through the three-tier distribution system, and tasting room sales have risen from 14% of craft distillery sales in 2015 to 26% today. That’s an indication that sales are more local, but also does not take into account the remarkable evolution of craft spirits visitor centers and their gift shops as travel destinations.
One major blow to distribution was RNDC’s departure last year; as a national distributor focused on craft spirits, it provided access to the three-tier market across many states, along with logistics and warehousing infrastructure. In fact, RNDC was the first major distributor to become a sponsor of the ACSA. The RNDC operations have been taken over in 11 states by Reyes Beverage, a major beer distributor that’s not as proven in this area. But beer distributors have taken on an increasingly important role in craft spirits distribution, so Reyes’s involvement is certainly something to watch.
More Direct Sales Needed
Overall, limited access to the U.S. three-tier distribution has hindered prospects for craft’s geographical expansion. Sales of craft spirits outside their home states have dropped slightly from 54% of the total in 2020 to 51% in 2025. This indicates more limited sales horizons for craft producers. The good news is that distilleries have evolved their sites to foster tourism and local followers, by including tasting rooms, tours, barrel sales, whiskey clubs, and more.
But the numbers certainly point to the need to develop direct-to-consumer sales channels, rather than relying on the three-tier system. Currently, about 47 states allow direct shipment of wine straight from winemakers to consumers; only 11 states allow the same privilege to spirits makers.
The ACSA report does not break out specific numbers for craft whiskey, but instead includes all spirit types. It defines craft spirits as being distilled spirits that are made in the U.S. by licensed distillers producing not more than 750,000 proof gallons (or 394,317 9-liter cases) removed from bond annually, who market themselves as craft, are not openly controlled by a large supplier, and are in line with the ACSA’s Code of Ethics.
