- Trends
Seeking to rebound after a slow start this year, liquor stores aim to accelerate sales of RTDs, rosés, white wines, and spirits.
Sunnier weather takes on new meaning for beverage alcohol retailers this year as they shake off a chilly first quarter and try to heat up sales heading into the summer season. “We are crossing our fingers for nice weather—the weather makes or breaks everything,” says Mark O’Callaghan, owner, Exit 9 Wine & Liquor Warehouse, Clifton Park, New York. “This is the time of year where the backyards are getting cleaned. People are opening their patios and starting to grill and entertain in their yards. Memorial Day weekend kicks it all off. If it’s a nice weekend, business is great. If it’s raining, it’s awful.”
Nationwide, wine and spirits sales were down the first three months of 2024. “It’s been bad in the country and specifically in New York,” O’Callaghan says. “New York state is down almost 10% in spirits and wine sales. The three main reasons are the economy and less expendable income, competition from recreational cannabis, and the big, strong push to eat and drink better by consuming low-calorie or non-alcohol wine and spirits.”
From January through March, distributor retail depletions of wine decreased 10.9% and spirits declined 5.2%, according to the Wine & Spirits Wholesalers of America (WSWA)’s SipSource. Beer is struggling even more, according to Nielsen data. “The only thing keeping its head up is spirits-based RTDs,” O’Callaghan says. “The category stopped growing at double-digit rates, but is still a few points above last year. Considering everything, that’s fantastic for us.”
High Noon, the spirits-based RTD category leader, launched an Iced Tea Variety Pack ($19.95 an eight-pack of 355-ml. cans at Exit 9), including Original, Lemon, Raspberry, and Peach flavors. Exit 9 received its first shipment of the new offering Tuesday, May 7. “I think they will do very well,” O’Callaghan says. “High Noon really runs the category. They go from the Tailgate variety pack in the fall to snowbird in the winter, and now they are coming out with their Pool Pack and Iced Teas for the summer. It’s seasonal marketing.”
At Exit 9, High Noon comprises about 75% of spirits-based RTD sales. Leading brands among the remaining 25% include On The Rocks ($12.91 a 375-ml.), Long Drink ($17.12 an eight-pack of 355-ml. cans), Sunny D Vodka Seltzer ($10.51 a four-pack of 355-ml. cans), and Fresca Vodka Spritz Variety Pack ($19.94 an eight-pack of 355-ml. cans). “Once Memorial Day hits, there is a High Noon in every single cart that goes out my door,” O’Callaghan says. “We are putting up a 3,700-case display on Monday, May 13. They are all gone by mid-August.”
In Los Angeles, The Wine House has experienced a rollercoaster ride so far this year. “May is looking like a mixed bag as well,” says owner Glen Knight. “One week we are up and the next slows down. We should see a push for the upcoming Memorial Day weekend.”
The $12-$30 price point has been the sweet spot for wines at The Wine House so far this year. This month, the store is promoting the 2022 Atmosphere Sancerre ($25 a 750-ml.), 2022 Domaine Laroche Chablis Saint Martin ($30), 2022 Joey Tensley Fundamental Chardonnay ($20), 2022 Talbott Kali Hart Chardonnay ($16 ), and Bisol Jeio Prosecco ($14). To help draw people in May, The Wine House has two large in-store wine tastings with winemakers. One is the Beaulieu Vineyards Current Release and Library Wine Tasting ($59 per person) on May 16. The other is a McPrice Myers Wine Tasting ($34) on May 30. Spirits gaining traction at The Wine House include G4 Blanco Tequila ($42 a 750ml), Siete Leguas Blanco Tequila ($45 a 750-ml.), Monkey 47 gin ($40 a 375-ml.), and Nordés gin ($35 A 700-ml.)
In Texas, Austin-based Twin Liquors is highlighting a Memorial Day sale featuring rosés, spirits supporting summer co*cktailing vibes, and RTDs. “The Spritz is the co*cktail of the summer,” says Twin Liquors marketing director Sandra Spalding. “Folks aren’t necessarily tiring of the Aperol Spritz RTD ($19 a four-pack of 200-mls.), but rather, they are excited about trying new variations.”
Spalding notes that Lillet ($20.79 a 750-ml.) and amaro (prices vary) spritzes and co*cktails like the Kalimotxo, made with red wine and cola,are increasing in popularity. “We are also seeing a growing trend of the non-alcohol spritz, such as Ghia & Lyre’s,” Spalding says. “It’s nice to have an alcohol-free alternative during festive party weekends.”
