Distilled Spirits Industry Leadership Strategy for a Challenging Market
The distilled spirits industry stands at a crossroads. After decadeds of strong growth, shifting consumer habits, economic pressures, and regulatory hurdles are creating new challenges for distillers and industry leaders. On this episode of Beyond the Bottom Line, host Bert Miller sits down with Chris Swonger, President and CEO of the Distilled Spirits Council of the United States (DISCUS) and Responsibility.org, to explore where the industry stands today—and how it can thrive moving forward.
What Is the Distilled Spirits Council of the United States?
Founded in 1973, DISCUS serves as the leading advocacy group for distillers in the U.S. The council represents major spirits producers and works on issues ranging from federal legislation to international trade.
Chris Swonger, who has led DISCUS for nearly seven years, explains that the organization ensures distillers can bring products to market without unnecessary barriers. By focusing on trade, taxation, and public policy, DISCUS plays a vital role in shaping the business environment for the entire distilled spirits industry.
Spirits Industry Challenges in 2025
Changing Consumer Behavior
One of the biggest hurdles is how younger consumers socialize and engage with brands. Legal drinking age consumers are not frequenting bars and restaurants the way previous generations did. Social patterns are increasingly digital and personalized, reshaping how and when alcohol is consumed.
Economic Pressures
Inflation and shifting discretionary spending have also slowed category growth. During the pandemic, consumers were willing to trade up for premium bottles. Today, many are cutting back, impacting sales across the spirits industry.
Competition from Alternatives
The rise of cannabis legalization and hemp-based beverages has introduced new competition. Ready-to-drink (RTD) products remain a bright spot, but overall beverage alcohol sales have flattened.
Policy and Regulation
From excise taxes to international tariffs, government policy can significantly affect the distilled spirits industry. DISCUS plays a key role in advocating for fair trade and ensuring spirits producers can operate without punitive regulations.
The Importance of Industry Unity
Historically, beer, wine, and spirits groups often pursued their own agendas. Today, however, collaboration across the beverage alcohol categories is stronger than ever. Swonger emphasizes that uniting around shared policy and consumer education issues is critical as the industry faces mounting scrutiny and competitive pressures.
Through grassroots efforts like Spirits United, DISCUS provides a platform for companies—large and small—to come together and push for solutions that benefit the entire industry.
Balancing Heritage and Innovation
The distilled spirits industry is steeped in tradition. Bourbon, scotch, tequila, and rum all carry deep cultural heritage that consumers value. At the same time, innovation drives growth.
Recent years have seen an explosion of spirits-based RTDs, which combine convenience with mixology-level flavor. Swonger notes that the key to long-term success lies in respecting heritage while continuing to innovate, ensuring brands stay relevant to today’s consumers.
Why Consumer-Led Strategies Matter
Being consumer-first has never been more important. As Swonger puts it, “If you’re not capturing the hearts and minds of the consumer and bringing new products to market, then you’re losing.”
For distillers, this means:
This consumer focus applies not only to product development but also to how the industry communicates about responsibility.
Responsibility and Sustainability in the Spirits Industry
Through Responsibility.org, the industry addresses alcohol misuse directly. Efforts to reduce underage drinking, combat impaired driving, and encourage moderation aren’t just ethical—they’re essential for long-term sustainability.
Swonger emphasizes that self-regulation is the best defense against over-regulation. By running toward problems instead of avoiding them, the industry strengthens its position with policymakers and consumers alike.
The Role of Leadership and Talent
Beyond advocacy and innovation, the spirits industry depends on talent. As Swonger and Miller discuss, tough times present opportunities for leaders with resilience and a “can-do” mindset. For professionals willing to rise to the occasion, the distilled spirits industry offers a career path where impact and growth potential remain high.
Conclusion
The spirits industry challenges are significant, from economic pressures to shifting consumer habits and regulatory uncertainty. But as Chris Swonger highlights, unity, innovation, responsibility, and strong leadership will ensure the industry continues to thrive.
Heritage-rich yet future-focused, the spirits sector is evolving in real time. By staying consumer-led and policy-engaged, distillers can chart a path that honors tradition while embracing the future.
FAQs About the Distilled Spirits Industry
What is DISCUS?
The Distilled Spirits Council of the United States (DISCUS) is the leading advocacy group representing distillers in the U.S.
What are the distilled spirits industry challenges in 2025?
Key challenges include shifting consumer behavior, inflation, competition from cannabis and RTDs, and regulatory pressures such as tariffs and excise taxes.
Why is responsibility important in the distilled spirits industry?
Promoting responsible consumption reduces misuse and ensures the long-term sustainability of the industry by preventing over-regulation.
How is the distilled spirits industry balancing tradition and innovation?
By celebrating heritage products like bourbon and scotch while expanding into innovative categories such as spirits-based ready-to-drink cocktails.
What role does executive leadership play in the industry’s future?
Strong leadership and skilled professionals are critical to navigating headwinds and driving innovation across the distilled spirits industry.