Mehall: I don’t know if I would characterize it as headwinds. I think there’s a lot of noise in the numbers. We’re still in a period of premiumization, but we’re seeing some of those high-end trends start to cool off. We’re seeing some retailers right-sizing inventory levels and changing how their footprints look, which impacts trends.

The conversations have shifted into: how do I grow market share, how do I outperform the marketplace? That’s where the partnership with RNDC creates a different dialogue, because it’s not just about servicing the in-market independents or the on-premise, but also about how to capitalize on the national accounts. It becomes a more holistic conversation around how we attack the marketplace to position our brands for success.

SND: There’s a lot of talk about the outlook for the wine category as spirits continue to capture market share. What positives do you see in wine’s future?

Mehall: RNDC continues to be very excited about the opportunities that exist within the wine space, particularly in certain price segments. The premium side of the book continues to be very strong. We’ve had a massive amount of success with the Estates Group.

There’s a lot of dialogue with our customers as well as with our suppliers about how to recruit that next generation of consumers into the wine space. I think that’ll be a critical unlock for the industry: to win the hearts and minds of that new consumer who isn’t just wine-focused or spirit-focused. I’m encouraged by the plans that some of our partners have in place to attract those new consumers.

As for trends, sparkling continues to be strong, as does Sauvignon Blanc. We’re seeing growth in those areas, and mid-tier price points in general. The low-alc side continues to be an area where our suppliers are engaging, but also our customers are starting to have certain sections for this carved out in their stores.

People are more health conscious than ever, and at the same time they still want to participate within the category. We need to challenge our thinking and innovate around how to address what that consumer is demanding.

SND: What are your views on hemp-derived THC beverages?

Mehall: There’s been a lot of money invested in general in the marketplace within this area. The returns haven’t been there.

There’s interest, but we’ve been cautious with it largely because we’re still waiting for some clarity around the regulatory environment and to understand how those products are going to show up within the retail space where beverage alcohol plays today. We’re in the process of learning and understanding the consumer trends and behaviors. It’s going to be largely dependent on clarity of that regulation and seeing where the natural synergies or the overlap is with beverage alcohol.