Distillery Inventory Piles Up as Spirits Demand Cools
Creatrip Team
2 months ago
Major global spirits firms face a market slowdown as demand for whisky, cognac, tequila and other aged spirits falls. Financial Times reports five listed companies (Diageo, Pernod Ricard, Campari, Brown-Forman, Rémy Cointreau) hold about $22 billion (≈32 trillion KRW) in ageing stock—its highest level in a decade. Rémy Cointreau’s inventory equals nearly two years of sales and approaches its market value. Companies ramped up production during the COVID-19 boom, but rising inflation, reduced disposable income, and increased use of obesity drugs (e.g., Wegovy, Ozempic) and a stronger health focus have cut alcohol consumption. Some producers, like Japan’s Suntory and Diageo, have idled key distilleries; analysts warn prolonged production cuts risk future shortages when demand rebounds.
