The Financial Times analyzes the impact of inflation on the alcohol industry
As a result of a sharp decline in demand for Scotch whisky, cognac, and tequila, producers are facing the problem of excess stocks of alcoholic beverages. This is reported by the Financial Times.
The publication notes that the situation has forced companies to lower prices and conserve factories in order to sell off the bottles accumulated in warehouses. According to RBC, the five largest alcohol producers in Europe — Diageo, Pernod Ricard, Campari, Brown Forman, and Rémy Cointreau — have stocks valued at $22 billion, the highest level in over a decade.
During the COVID-19 pandemic, when alcohol sales significantly increased, many European companies ramped up production. Bernstein analyst Trevor Stirling noted that "in 2021 and 2022, everyone lost control and thought that high demand would persist." In his opinion, the sharp rise in inflation has brought the market back to reality. The decline in disposable income over the past few years has negatively impacted demand, leading to warnings of profit reductions, changes in management, and a mass exodus of shareholders from major companies in the sector, claims the FT.
In its annual agricultural forecast published in December 2025, the European Commission predicted that wine consumption in Europe could decrease by more than 9% by 2035. Analysts from IWSR (International Wine and Spirits Research) also forecast a decline in alcohol consumption globally: beer by 0.2%, spirits by 1.3%, and wine by 2.4%.
Photo www
