Retailers See Growth In RTDs, Organic Wines, Eye Tariffs Warily

Amid an uncertain economic environment early this year, drinks retailers are seeing continued enthusiasm for RTDs, organic wines, and Prosecco, and they’re making moves to try and stay ahead of rapidly shifting consumer preferences. “We realize we are facing headwinds, but we are doing everything we can do to stay out in front of it,” says Gary Fisch, CEO of New Jersey-based Gary’s Wine & Marketplace. “We are confident we will continue to grow.”

The surge in the RTD category has been a boon in an otherwise challenging market, with total spirits-based RTD volume approaching 70 million cases last year, up from less than 10 million cases in 2019, according to Impact Databank. “RTDs continue significant growth, but the market is increasingly competitive, and shelf space remains limited,” Fisch says. “We will keep reevaluating where we put RTDs in our stores and how much shelf space we allocate to them.”

Other key objectives at Gary’s this year include highlighting the value of private-label wines, expanding event programming, and encouraging customers to be more experimental and open to new product categories.

At the Mendez Fuel chain in Miami, vice president of operations Andrew Mendez continues to see premixed cocktails like Monaco (+5% to 3.1 million cases last year) and wine spritzers like Briosa drive sales, along with organic wines like Avaline (+50% to 214,000 cases) and Naturalis. “I have also been selling a lot more Prosecco,” he adds.

While stoking growth in popular categories, retailers are concerned about the U.S. administration’s tariff plans. “Domestic policy uncertainty, particularly tariffs, could significantly impact consumer demand for wine and spirits,” says Mike Osborn, executive vice president at Wine.com. “In 2024, wine from the European Union contributed more than half of the company’s total revenue. Younger consumers favor imports, with 68% of Gen Z and 64% of Millennials choosing imported wines over domestic varieties.”

Fisch agrees that tariffs on imported wines and spirits would be “extremely harmful” and represent an obstacle to growth. “There will be major pushback from consumers if they see significant price increases from tariffs,” he says. “We would not be able to make up for the decrease in imported wine sales by selling more domestic products.” –Kevin Barry

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