Sauvignon Blanc, Tequila, And RTDs Drive Off-Premise Sales
August 2, 2024Summer retail sales appear mixed on the heels of a slow start to 2024, with overall beverage alcohol sales remaining soft amid some pockets of growth. “The RTDs and hemp-infused seltzers, which we call alternative beverages, show the biggest growth trends, but there’s also strong growth from rosés, Sauvignon Blanc, Tequila, and mezcal,” says Armando Luis, owner of two Sparrow Wine & Liquor Co. retail stores in Hoboken, New Jersey.
New Zealand Sauvignon Blancs Kim Crawford ($15 a 750-ml.), Oyster Bay ($15), Cloudy Bay, and Craggy Range Te Muna ($25) are spearheading growth. Rosé leaders include Wolffer Estate Summer In A Bottle Rosé ($25 a 750-ml.), Wolffer Estate Rosé ($18), Château d’Esclans Whispering Angel Rosé ($23 a 750-ml.), and The Pale Rosé By Sacha Lichine ($15). “Rosés are holding onto a strong base and moving up in price points,” Luis says.
Alternative beverages like RTDs and hemp THC drinks represented 5.5% of Sparrow’s total sales in 2022. Now they represent 8.5%. “Traditional beer was 17% in 2022, and now it’s 15%,” Luis says. “Alternative beverages are taking a lot from beer and entry-level wines.”
Spirits-based RTDs remain a growth catalyst. “High Noon continues pulling a lot of the category,” says Luis. “The High Noon variety pack ($22 to $24 an eight-pack of 12-ounce cans) is on fire. The field is becoming crowded, so we’re very judicious because of huge quality differences.”
Tequila and mezcal continue to be hot, although they’re cooling a bit price-point wise. “We have moved from the $70 to the $60 price point in Tequila,” Luis says. “Casamigos ($50 a 750-ml. of Blanco) is a monster.” From a smaller base, liqueurs are strong, including Aperol ($28 a 750-ml.), Campari ($35), and amaro.
In Miami, Florida, three-unit convenience chain Mendez Fuel saw slower alcohol sales around July Fourth despite growth for alternative beverages, summer wines, IPAs, Cheladas, and ciders. “Sales were down 5% because people are on vacation and the economy is down,” says vice president of operations Andrew Mendez. “Price increases don’t stop. That’s not helping.”
But since the beginning of June, Mendez’s wine sales have been trending upward. Leaders include Josh Cellars ($16), Gulp Hablo Orange Wine ($23 a liter), Wolffer Estate Summer In A Bottle Rosé ($27 a 750-ml.), and three wines from Sebastopol, California-based Las Jaras: Glou Glou ($29), Superbloom ($29), and Sweet Berry Wine ($35). “People want something refreshing and something they trust,” Mendez says. “I’m getting a lot of movement with Josh Sauvignon Blanc. It’s non-stop for me here.”
At the Mendez stores, Mama’s Cannabis Infused drinks ($6.49 a 12-ounce can) and Delta Cannabis Seltzer ($6 a 12-ounce can) are big sellers. “Some people would rather drink a non-alcoholic beer or (THC-infused) drink,” says Mendez. “They’re looking for a balance.”
Popular spirits-based RTD brands at Mendez include Betty Booze Sparkling Tequila ($26 a six-pack of 12-ounce cans) and vodka spritzer Sprinter By Kylie Jenner ($20 an eight-pack of 12-ounce cans). “Every celebrity now is doing one, including Gin and Juice by Dre and Snoop ($27 an eight-pack of 12-ounce cans),” Mendez says.
At Sal’s Beverage World, a three-unit retailer in the Chicago suburbs, overall sales were flat this July Fourth compared to last year. “But I lost three points in margin getting there,” says owner Vince Liotta. “The spirits category was up overall with vodka seltzers and RTDs leading the way with growth. Wine was slightly down, and the beer category was slightly up, led by Modelo ($17 a 12-pack of 12-ounce cans).”
As the summer continues, Sparrow’s Luis is keeping his finger on the industry pulse. “Even though Hoboken is a microcosm and high-end market, the trends are almost always aligned with national trends,” he says. “January and February were scary, but the spring and summer have been positive. We’re cautiously optimistic.”
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