Market Watch: Retailers Battle Holiday Supply Issues

Timing is everything this December, with upscale Bourbons, Tequilas, and Scotches poised to capitalize on the gift-giving season. The stage is set for high-end spirits to soar at retail, but where the spotlight shines will depend on what inventory arrives at the party on time. “All of the brands have major stocking issues, and it’s just a matter of when the ports can process the containers,” says Terrence Tompkins, senior purchasing manager for Downtown Spirits in Seattle. “Ultimately, whichever brands are able to get their products in stock will capitalize on the holiday season.”

Bourbon has the home-field advantage over imported spirits, but it also faces distribution challenges. “Imports like Scotch and Tequila have their own supply chain complications, but even local products have had major disruptions due to the distribution and shipping companies having difficulties moving product,” Tompkins explains. “There’s a chance customers may switch from their preferred unavailable brands to an available unfamiliar brand, or customers may choose to wait until their preferred brands are back in stock.”

The situation is similar at four-store Boston chain Sav-Mor Liquors. “Our supply is bonkers,” says wine buyer Michael Weiner. “Trying to figure out what our supply will be is difficult because we don’t know if something is coming in or not.” Still, Weiner believes that premium-tier spirits gifts sets and other upscale offerings will continue to do well through the holidays, and he’s also anticipating ongoing strong demand for home delivery and online sales. Market Watch has more. —Kevin Barry

Tagged : Bourbon, Downtown Spirits, Market Watch, Scotch, Tequila

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