Core Insights - The craft brewery business, along with liquor and wine brands, has faced significant challenges due to the Covid slowdown, resulting in sales declines and some closures [1][2] - The spirits industry, while resilient, is not immune to economic pressures, with consumers facing high prices and interest rates leading to reduced spending on spirits [2][3] - The spirits sector maintained its market share lead in 2024, despite a slight dip in sales, indicating a long-term trend of market share growth [8] Industry Performance - Sales in the U.S. spirits market decreased by 1.1% in 2024, totaling $37.2 billion, while volumes increased by 1.1% to 312.2 million 9-liter cases [8] - The spirits market share reached 42.2% in 2024, marking over two decades of gains, with a total increase of more than 13 points since 2000, equating to $880 million in supplier revenue per point [8] Demographic Trends - There has been a decline in drinking among adults under 35, with only 62% reporting they drink, down from 72% two decades ago, while drinking has increased among adults aged 55 and older [9] - Young adults are drinking less frequently and are less likely to engage in excessive drinking [9] Company-Specific Developments - Staggemeyer Stave, a company producing premium white oak barrel staves for the wine and whiskey industry for over 50 years, has filed for Chapter 11 bankruptcy protection following an involuntary Chapter 7 bankruptcy filed by its bank [5][7] - The company has a long history rooted in Missouri and has operated in Minnesota since 1958, benefiting from the region's abundant white oak [6]