Spirits producers face record stockpiles amid falling demand
Leading global producers of spirits such as Diageo, Pernod Ricard, Campari, Brown-Forman, and Rémy Cointreau have amassed unprecedented inventories of whisky, scotch, cognac, and tequila. Due to declining demand, these companies are temporarily halting production to sell off excess stock valued at approximately $22 billion.
The share of maturing stocks relative to net sales has sharply increased among the top five market players. Notably, French producer Rémy Cointreau holds cognac inventories worth around €1.8 billion, marking a historic peak. The industry is experiencing a surplus, or “lake,” of unsold spirits, prompting manufacturers to adjust production plans to free up warehouse capacity.
This development highlights significant challenges for the alcohol sector amid shifting consumer behaviour. Producers are likely to focus on adapting to market changes and finding ways to boost demand going forward.
