### Key Themes This Week:

- **RTD Revolution**: Ready-to-drink cocktails drove +17.1% volume growth; spirits excluding RTDs were -2.7% volume

- **Historic Milestone**: Spirits overtook beer in U.S. revenue share (42.4% vs 41.8-41.9%)

- **Consumer Caution**: Affordability-first behavior intensifying; Hispanic consumer concern affecting on-premise traffic

- **Wine's Structural Reset**: Participation down to 29% of adults; 512 fewer wineries YoY

- **Distribution Disruption**: RNDC California exit causing ripple effects; consolidation accelerating

### Major Company Moves:

- **Kirin** selling Four Roses bourbon to E&J Gallo for up to $775 million

- **AB InBev** acquiring 85% stake in BeatBox for $490 million

- **Johnson Brothers** becomes #3 U.S. wine wholesaler via Maverick acquisition

- **Barrell Craft Spirits** consolidating facilities, selling Jeffersontown site

- **New Belgium** restructuring with workforce reductions

- **WhistlePig** CEO departure; Alex Roberts named new CEO

- **Uncle Nearest** receivership continues; ~$100M debt, potential Q2 sale

### Key Data Points:

- U.S. spirits overall: +1.9% volume, -2.2% value (2025)

- Prepared cocktails: +37.3% volume (latest 4W)

- Tequila: -6.5% December sales (NIQ); Casamigos -22.1%, Don Julio -11.4%

- Beer: +2.2% volume latest 4W vs -1.1% prior; improving trend

- Michelob Ultra: +9.0% volume; Bud Light -6.2%

- Modelo: +4.5% volume; Pacifico +14.9% dollars; Victoria +29%

- NA Beer: +24.9% dollar growth

- Wine: $114B value (+5%) on 366M cases (-1.7%); 29% participation rate

- California vineyards: 38,134 acres removed Oct 2024-Aug 2025

### Regulatory & Trade Updates:

- U.S. importers paid $200M+ in tariffs through October

- U.S. spirits exports to Canada at ~25% of prior levels

- Washington state Senate passed 0.05% BAC bill

- NY denied Trader Joe's wine store application

- Supreme Court amicus brief on AZ wine shipping rules

- Cannabis rescheduling executive order could impact THC beverage competition

### Consumer Trends:

- 54% of U.S. adults drink alcohol (near 90-year low)

- ~50% of Gen Z adults drink

- 12% of U.S. adults on GLP-1 medications

- Cannabis drinks +8.2% YoY; shots +23.1%

- 18M frequent cannabis users vs 15M frequent alcohol users