Market Watch: Retail Gains Being Driven By Upscale Spirits, Luxury Wines, And RTDs

Premiumization in both wine and spirits, as well as the rising RTD category and improved e-commerce systems are fueling growth at the U.S. market’s retail tier. In Pennsylvania, a control state, sales of high-end spirits grew 53% in 2021, led by luxury brands like Patrón Silver ($53 a 750-ml.). “We expect Tequila will continue experiencing double-digit growth in premium segments, especially as celebrity brands grow,” says Tim Holden, chairman of the Pennsylvania Liquor Control Board (PLCB). The rapid gains at the high end helped the PLCB’s total sales reach $2.73 billion in its latest fiscal year, up 14% versus the prior year and up 9% compared with pre-pandemic levels.

Wines also capitalized on upscaling trends in the Keystone State last year as ultra-premium offerings led all segments with 24% growth. The three top-selling wines in Pennsylvania in 2021 were La Marca Prosecco ($17 a 750-ml.), Cavit Pinot Grigio ($15 a 1.5-liter), and Kendall-Jackson Vintner’s Reserve Chardonnay ($15 a 750-ml.). “People are drinking better wine at home and going out less, and with the pandemic ongoing, we don’t expect these trends to change,” Holden says.

At The Wine House in Los Angeles, last year’s top-selling spirits include Clase Azul Reposado Tequila ($200 a 750-ml.), Eagle Rare Kentucky Straight Bourbon ($40), and Campari liqueur ($28). “High-end Tequila and whiskies are still on fire,” owner Glen Knight says. The top-grossing wine at The Wine House in 2021 was the 2018 Opus One ($340 a 750-ml.). Online sales at The Wine House shot up 18% in 2021 over 2020. “We expect this growth to continue as more users see how easy it is to place orders for delivery and curbside pickup,” Knight explains. Market Watch has more on current conditions within the U.S. retail landscape.

Tagged : Campari, Cavit, Eagle Rare, La Marca, Patrón, Pennsylvania Liquor Control Board, premiumization, retail, The Wine House

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