Fero (formerly Ferovinum), the drink industry’s supply chain and working capital partner, will be heading to next week’s Distilled Spirits Council of United States (DISCUS) Annual Conference & Trade Show in Louisville, Kentucky. The timing could not be more relevant as executives representing the largest industry names, policy makers, innovators and brands come together to discuss navigating key issues and uncertainty that are impacting the spirits industry today.
2025: resilience and real pressure shape the market
The conference follows closely on the heels of the Distilled Spirits Council of the United States Annual Economic Briefing on February 5, where industry leaders outlined both the resilience and the real pressures that shaped the market in 2025.
According to DISCUS, US spirits supplier sales totalled $36.4 billion in 2025, down 2.2% year-over-year, even as volumes rose 1.9% to 318.1 million nine-liter cases. For the fourth consecutive year, spirits maintained their market share lead at 42.4% of the total beverage alcohol market, which is up more than 13 percentage points since 2000. Each point of share represents approximately $860 million in supplier revenue, underscoring the long-term structural strength of the category.
At the same time, growth is increasingly concentrated. Spirits ready-to-drink cocktails (RTDs) have surged to nearly a $4 billion category, reaching $3.8 billion in 2025 – up 16.4% year-over-year – while most other major categories saw declines.
Vodka ($7 billion), Tequila/Mezcal ($6.4 billion), and American Whiskey ($5.1 billion) remain the largest categories by revenue, but overall demand is softening amid weakening consumer confidence and persistent economic pressures.
Layered onto these market dynamics are ongoing global trade tensions. DISCUS reported that American spirits exports declined 9% year-over-year in Q2 2025, with unresolved retaliatory tariff threats, the removal of US spirits from most Canadian retail shelves and broader policy uncertainty continuing to strain distillers. Small craft producers have been particularly hit hard.
It was not all doom and gloom though, with 2025 seeing important wins, including continued protection from retaliatory tariffs and tariff reductions in India and Turkey, the call to permanently reinstate zero-for-zero tariffs remains a top priority heading into 2026.
An industry comes together
Against this backdrop, Fero’s presence at DISCUS is both timely and strategic.
“DISCUS is where many critical conversations shaping the future of US spirits are happening,” said Joe Swanson, US head of spirits at Fero. “With sales softening but volumes holding, and trade policy creating real uncertainty for exporters, capital strategy and risk management matter more than ever. This is an opportunity to further understand current industry pain points in more detail so that we can ensure our platform continutes to meet those needs for our clients.”
For many distillers, tariff unpredictability, shifting state-level policy and evolving consumer demand, create cash flow volatility and, in particular, for those investing in inventory, innovation, or international expansion. Fero’s working capital structures are designed specifically to support drinks businesses navigating these cycles.
“In uncertain environments, access to flexible working capital becomes a competitive advantage,” Swanson added. “Whether it’s managing inventory ahead of potential trade changes or protecting liquidity while export markets stabilize, our role is to help producers stay focused on growth. That’s why we are at DISCUS.”
DISCUS won’t be able to provide all the answers, but it will help provide the forum for the industry to collectively discuss how we can best manage the changing landscape.
If you are interested in having a chat with the Fero team at DISCUS please do get in touch by email info@ferodrinks.com and we can set something up.
