Retailers See Summer Growth Amid Brand Proliferation, Rising Prices

So far this summer, off-premise winners include spirits-based RTDs, Tequila, and Sauvignon Blanc. In Minnesota, the 12-unit Haskell’s retail chain is experiencing strong overall sales with Tequila and Sauvignon Blanc leading growth. RTD sales are more brisk at the company’s downtown Minneapolis unit than at its suburban locations. “We had a great week leading up to Fourth of July and a great week afterwards,” says Haskell’s president Ted Farrell. “Sales year-over-year were up.”

“Tequilas are still driving sales,” Farrell says. “The hard part is everybody and their mother is coming out with a new Tequila. The market is getting saturated with the brands, and there are only about seven or eight that really sell well. Everyone knows Casamigos Cristalino ($52 a 750-ml.), Don Julio Blanco ($50 a 750-ml.), and Herradura ($42). The woes of a retailer is finding the right amount of brands to carry.” In wine, Sauvignon Blanc has been trending, while rosé sales have slowed some as the number of brands has swelled. Still, “Consumers are still enjoying good rosés from Provence and other high-quality areas,” Farrell says.

Similar trends have taken hold at the four Gary’s Wine & Marketplace stores in New Jersey, where rosé sales are down 10% while Sauvignon Blanc sales are up 5%, led by labels like Fog Mountain ($13 a 750-ml.), Fisch ($23), Duckhorn North Coast ($24), and Cakebread ($33). “Overall sales in the three weeks leading up to the Fourth of July were just above flat relative to 2022,” says Mike Fisch, director of innovation at Gary’s. “We are seeing a lower basket size for online sales and a comparable basket size for in-store sales when comparing 2023 to 2022.”

It remains to be seen if consumer demand can absorb the tidal wave of new RTD and Tequila brands at Gary’s. “RTDs sales are up 10% year-over-year, and the number of category SKUs is up 25%,” Fisch says. “Despite the growing nature of this category, we still find there is more supply of RTD options than demand from customers.” Top-sellers include Surfside Variety Pack ($21 an eight-pack of 12-ounce cans), Sunny D Vodka Seltzer ($12 a four-pack of 12-ounce cans), and Fishers Island Lemonade ($17 a four-pack of 12-ounce cans). Fishers Island was recently acquired by Gallo for an undisclosed sum.

In Virginia, 74 new products have been launched this quarter, including 19 Tequilas and 13 spirits-based RTDs, according to the Virginia ABC. “We will continue to focus on premiumization and seasonally appropriate products,” says John Shiffer, director of marketing and merchandising at the Virginia ABC. “We continue to keep a close eye on the impact that inflation may have on our customers’ purchasing activities.” Market Watch has more.

Tagged : Casamigos, Don Julio, Gary's Wine & Marketplace, Haskell's, Herradura

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