Spirits manufacturers entrust Christmas to overcome “a difficult and complex year”

The spirits industry is hoping the impending Christmas festivities will help it overcome a rocky year. The executive director of Spirits of Spain, Bosco Torremocha, has described 2025 as “a difficult and complex year, in which “The trend has not accompanied us” in reference to the heavy rainfall during last Easter and “a summer that has not been good in terms of consumption.” Which he has attributed to the price situation. From Spirits they have estimated that so far this year the consumption of this type of products has fallen 1.5%: “it may be a little more at the end of the year, we will see”, Torremocha pointed out. In any case, the head of this employer has assured that they have “good prospects and hopes” looking ahead to this Christmas. Regarding export markets as relevant as the United States, it has recognized that tariffs have reduced its margin and regretted the barriers in other countries such as China.

Torremocha has pointed out that “the cost of living is much higher” and mentioned “how costs have increased for business segments such as the hospitality industry, rent, energy and labor costs, which grow and does not imply that they charge what we would like.” This is what has been called “structural elements” which is leading them to lose competitiveness in activities like theirs. “Getting to the end of the month today is much more expensive than two years ago,” said the representative of Spirits of Spain. In any case, he hopes that “the people who continue to show interest and affection for our products, the diversity, the offer… have the time and, hopefully, the money to have that drink that the sector offers”.

The executive director of Spirits of Spain has also highlighted that “the sector is very attentive to everything that is happening” and that, through the innovation of new categories, “We are adapting more to changing demand.” Along these lines, he has asked for “measures by public powers to encourage consumption and the economy of families, who are going through a difficult time.” Torremocha has also made reference to effort and investments they are making from the sales channels directed at a consumer who, in his opinion, is sending a very clear message: he is concerned about the price of the things he consumes.

Falling margins in the United States

Regarding the trade tensions that are going through markets as relevant as the United States, Torremocha has argued that “the tariff ends up being paid by the consumer” since these commercial barriers end up being passed on to the buyer. The representative of Spirits of Spain has assessed that “sales in terms of volume have not suffered as much as the margins.” Torremocha explained that the spirits sector has gone from ‘a 0-0 tariff regime’ on both sides of the Atlantic, to another with a 15% tariff. Which, he added, impacts margins and, in his opinion, is forcing them to be much more efficient in their value chain to avoid intermediaries. However, he considered that the negotiations between the Americans and the Europeans have not yet been completed.

Torremocha has admitted that spirits manufacturers are already looking towards other markets such as Philippines for brandy and place their hopes in Latin America or Africa. Regarding the first country, he recalled that brandy It is the second largest export item in the Philippine market and warned against a continent, the African continent, where the influence of China is very strong. The head of Spirits has regretted the tariff “close to 40%” that they bear in a power like China and the closure of a market as relevant as Russia.

Russia and Ukraine

The employers’ association has been supporting economic sanctions against the Asian power for the invasion of Ukraine. A conflict, explained its executive director, which represents the “instability for the entire region, especially Germany.” Another relevant market for spirits. In any case, the association that brings together spirit drink manufacturers is “optimistic about the future.” A feeling that they support in factors such as “international tourism continues to value Spain’s quality offering” and the dynamics of the sector itself, which they emphasize is made up of family businesses with centuries of history.