EXTRACTING THE ESSENTIAL
NATIONAL ACCOUNTS ON-PREMISE CUSTOMER DEVELOPMENT
BUSINESS HEADLINES
Across dining channels in 2024, SGWS wine and spirit performances had the biggest decline in fine dining (-10%), followed by polished casual (-7%), and then casual (-4%). Following significant softening in visitation and spending in 2024 due to economic concerns, traffic and sales are expected to return to more normalized rates of growth in 2025 across food and beverage.
Fewer operators anticipate taking price on drink menus in 2025, although consumers will remain attentive to menu prices and will evaluate value for the dollar spent on food and beverages, including adult beverages. Deal-seeking will continue, not only because many consumers will need to control spending, but also because consumers are now accustomed to and will expect food and drink promotions that involve notable price reductions.
In 2024, consumer interest in higher-priced alcohol at bars softened. However, towards the end of the year, there was a slight shift in perspectives. There was a three-point increase in the number of consumers who viewed ordering more expensive alcohol as an affordable indulgence. Additionally, there was a slight rise in consumer interest in exploring adult beverages on-premise, indicating more opportunities for trying premium drinks and brands. Consumers showed a slight preference for premiumizing wine and beer over spirits, possibly due to aggressive promotions on mixed drinks and cocktails, especially in casual dining.
INSIGHTS BEHIND THE BUSINESS TRENDS
Aside from economic concerns, consumers overall are declining in their adult beverage consumption. With the Surgeon General now calling for alcohol labels to include cancer warmings, there has been an on-going battle against the industry. Additionally, cannabis has continued to grow year over year as consumers, particularly younger, are shifting consumption. Cannabis is perceived as a healthier alternative that is also cheaper, as roughly 43% of consumers are low income. On the bright side, mocktails are gaining menu penetration as zero-proof spirits are a trending subcategory. Lastly, tariffs, if imposed, are likely to cause a shift to more domestic adult beverage brands.
Sources:
CHECK OUT THE LIQUID
INSIGHTS TOUR
COVERED BY FORBES!
The Liquid Insights Tour results, video, and press release can be found on the Southern Glazer’s Wine & Spirits Website. It was recently referenced by Forbes in its recent projections on trends for 2025. Be looking for additional communications and a deeper dive into these trends for our On-Premise National Accounts!
ON-PREMISE ARTICLES
INDUSTRY:
Southern Glazer’s Wine & Spirits Completes Closing of Transaction with Horizon Beverage Group, Inc.
The acquisition marks an exciting expansion for Southern Glazer’s, adding Massachusetts and Rhode Island as the 46th and 47th markets in its U.S. footprint, alongside operations in Canada and the Caribbean.
SGWS 12/24/24
10 Cocktail Trends Shaping The 2025 Beverage Market
To assess the latest Mixology trends, we recently sat down with Brian Masilionis, Sr. Director, Channel Development for Southern Glazer’s and his team to discuss latest development in mixology.
Forbes 12/11/24
5 Cocktail and Spirits Industry Trends to Watch in 2025
Between greater scrutiny of celebrity spirits and the looming threat of a trade war, these are the trends and issues the industry will be talking about in the year ahead.
SevenFiftyDaily 1/2/25
We’ll drink to that: Top beverage trends for 2025
Chefs and bartenders are leveling up on consumer interest in healthful beverages served with a dash of creativity, nostalgia and fun, new National Restaurant Association research finds.
NRN 12/3/24
Wine in 2025: key trends to shape the global industry
From experiential marketing to bright whites, 2025 is set to see trends prioritizing wellness, innovation and sustainability, according to a report by AF&CO.
The Drinks Business 1/7/25
The Impact of Trump’s Tariffs on the Wine Industry: Past and Future
The wine industry faced significant challenges due to tariffs imposed by President Trump’s first administration… Trump has made it clear that he will enact higher tariffs as a key part of the political agenda of his second administration.
National Law Review 1/13/25
What Trump’s latest tariff threat might mean for the drinks industry
The incoming US president’s 25% import duty plan could affect products including whisk(e)y and Tequila.
Just Drinks 12/2/24
TOP WINE VARIETALS
SPARKLING WINE
CABERNET SAUVIGNON
OTHER RED
CHARDONNAY
PINOT NOIR
SAUVIGNON BLANC
PINOT GRIGIO/PINOT GRIS
BLUSH/ROSE WINE
OTHER WHITE
MERLOT
SAKE
MOSCATO
RIESLING
SALES CORNER
ON-PREMISE
RANKED BY DOLLAR SHARE
CALENDAR YEAR 2024
TOTAL PERFORMANCE
ON-PREMISE PERFORMANCE
Tequila, though being the #1 top selling SGWS subcategory, saw the biggest loss in dollar volume. Similarly with wine, Sparkling saw the biggest loss as well. Nearly all spirit subcategories are declining with Cordials/Liquor being relatively flat, largely thanks to Aperol’s performance (+16%) as Rye and Cocktails are growing. Wine on the other hand, saw growth in multiple subcategories: Sauvignon Blanc (+3%), Blush/Rosé (+2%), and Other White (+3%). Joel Gott Sauvignon Blanc (+58%), Miraval Rose (+411%), and Franzia (+26%) were the driving for growth in these wine subcategories.
Sources: SGWS Compass Open States 2024
SALES CORNER
OFF-PREMISE
RANKED BY DOLLAR SHARE
CALENDAR YEAR 2024
TOP WINE VARIETALS
CABERNET SAUVIGNON
CHARDONNAY
SPARKLING
OTHER RED BLEND
SAUVIGNON BLANC
PINOT GRIGIO/PINOT GRIS
PINOT NOIR
WINE-BASED COCKTAIL
BLUSH/ROSE
FLAV BEV WINE
MUSCAT/MOSCATO
MERLOT
SPECIALTY
OTHER WHITE
ALL OTHER*
MALBEC
RIESLING
WHITE ZINFANDEL
ZINFANDEL
SANGRIA
CHIANTI
SYRAH/SHIRAZ
NON-ALCOHOLIC WINE
OFF-PREMISE PERFORMANCE
The overall spirits category has seen a slight increase, whereas the wine category is experiencing a decline. The growth in WineBased Cocktails, Sauvignon Blanc, Prosecco, and Non-Alcoholic Wine is counterbalancing the declines seen in Red Blends, Cabernet Sauvignon, Chardonnay, and Sparkling Wines other than Prosecco. Within the spirits sector, Tequila, Prepared Cocktails, and NonAlcoholic Spirits are driving growth, while Whiskey, Cognac, Vodka, and Rum are seeing declines. The decrease in Whiskey consumption is largely due to reductions in Scotch, Irish, and American Whiskies (with Tennessee Whiskey more affected than Bourbon), although Canadian Whisky remains a bright spot.
Non-Alcoholic wine and spirits continue to grow, though they still represent a small portion of their respective categories. Celebrity Tequilas continue to drive substantial volume, with brands like
CANADIAN WHISKY CORDIALS
BRANDY/COGNAC RUM
IRISH WHISKEY
JAPANESE WHISKY
NON-ALCOHOLIC SPIRITS GRAIN ALCOHOL
TOTAL PERFORMANCE
Teremana and 818 showing strong growth. However, Ultra-Premium Tequilas, such as Don Julio, are posting the most significant gains amid ongoing premiumization trends. Generation Z currently constitutes 9% of beverage alcohol buyers but only accounts for 5% of total spending. In contrast, Generation X exhibits the highest spending, correlating with their peak earning years. NielsenIQ predicts that consumer recruitment of Generation Z will be a key driver in 2025 as this cohort establishes its habits and preferences concerning beverage alcohol. Additional anticipated industry drivers for 2025 include moderation trends, flavor innovation, economic conditions, potential tariffs, and AI/digital engagement-enabled convenience.
Sources: MNIQ BevAl 2024 Year in Review; Nielsen Total US xAOC + Liquor Open State + Convenience Calendar Year 2024 ending 12-28-24.
MIXOLOGY LAB
OH SHUCKS... CORN IN COCKTAILS!
by Debbi Peek, Director of Mixology
Mexican Street Corn, known as Elote in Spanish, is a popular street food in Mexico that consists of corn on the cob slathered with a mix of mayonnaise, sour cream, or crema, and then sprinkled with cotija cheese, chili powder, and often lime juice and cilantro. Doesn’t that sound like it would make a delicious cocktail?? I think so! Elote Margarita it is, minus the crema!
Corn has a natural sweetness, and building this flavor properly means not letting the vegetal flavor overpower the expected freshness and bright profile that makes a cocktail refreshing.
A fool-proof path on your corn cocktail journey can be found in Nixta Licor de Elote. It’s a Mexican corn liqueur made from a base of tender, ancestral cacahuazintle (kaka • wha • SINT • lay) maize, grown in the high valleys and foothills of the Nevado de Toluca volcano. Nixta is produced at the Destilería y Bodega Abasolo, where they honor the Mexican culture of corn and the ancestral craft of nixtamalization—a 4,000 year old Mesoamerican cooking technique that uncovers the deepest flavors and aromas of maize.
Let’s pair Nixta Licor de Elote with Tequila’s distant step-cousin, Sotol.
WHAT IS SOTOL?
“Sotol is a distillate made from a type of shrub, Dasylirion wheeleri, more commonly called desert spoon. That’s in contrast to Tequila and Mezcal, crafted from agave.
“People frequently think it’s an agave distillate, but it’s not,” says Ivy Mix, co-owner of Leyenda, in Brooklyn, New York. The bar is noted for its extensive selection of Latin America-made spirits, which includes Sotol. “[The shrub] is closer to an evergreen plant than an agave.”
Resembling a yucca plant (or a sea urchin), a succulent with long, spiny leaves, the desert spoon plant grows wild. It’s found in Mexico’s Chihuahua region, though it grows as far north as Arizona, New Mexico and Texas. The plant can also be found south in Oaxaca, and thrives in both desert and forest climates.”
Source: Meet Sotol, the Spirit of Mexico | Wine Enthusiast Magazine
AIR FRYER CORN RIBS
Cut off ends, remove corn from the husk, and take off the silk. Rinse and clean each ear. Microwave the ears for 2 minutes to soften them before slicing. Let them cool for 5 minutes.
1. Cut the corn in half, then into quarters.
2. Mix avocado oil with Tajin, brush over the corn ribs.
3. Place the pieces of corn in the air fryer basket, making sure to keep them in a single layer.
Air fry at 400 degrees for 10 minutes, flipping them after 5 minutes.
ELOTE MARGARITA
1 ½ oz Sotol
1 oz Nixta Licor de Elote
2 oz Fresh Lime Sour
6-8
Cilantro Leaves
Roasted Corn Rib (Garnish)
Crushed Spicy Corn Chip Half Rim (Garnish)
Method: Shake with ice. Strain into a crushed spicy corn chip half rimmed ice filled old fashioned glass. Add Garnish.
Crushed Spicy Corn Chip Rim: Add spicy corn chips to bag and crush with a rolling pin, fine enough to stay on the rim of the glass.
Prepared glass: Brush honey in a thick swipe on the edge of a dry old fashioned glass. Press honey side into crushed spicy corn chips.
ACCOUNT SPOTLIGHT
OK OMENS | PORTLAND, OR
In 2023, Wine Enthusiast magazine named OK Omens one of the 50 Best Restaurants in America and it has been recognized as a 2023 and 2024 nominee for Outstanding Wine Program by the James Beard Foundation. That’s why Southern Glazer’s paid a visit to Portland in 2024 on its Liquid Insights Tour. While OK Omens specializes in wine, it also has a diverse offering across beverages on its menu. Some of the innovative takes on its wine program is offering higher-priced items like Champagne and French Burgundy by the full and half glass which ties into the “tiny tipples” trend from the Tour. The wine menu also infuses fun into the descriptions and pairings to make their offering more understandable and approachable for both younger and older guests exploring wine in addition to an extensive by the bottle list with an emphasis on aged Rieslings.
Some other examples of trends they are leveraging for broad appeal is a range of cocktails that incorporate unique twists on the Spritz as well as vegetal and botanical flavors in cocktails like pepper and corn in its “Spicy Bois” cocktail. A notable focus was also paid to a range of low and no-alcohol offerings that deliver a range of flavors like their vermouth and soda offering; Zero Proof Cocktails & Wine and other zero proof items that incorporate unique worldly ingredients like craft juices from Austria simply mixed with soda water. Beyond their offering, they also deliver traffic-driving programming like its 1-hour Oyster & Riesling Happy Hour noted as “Next Level” by the Wall Street Journal in 2024.
A LOOK AHEAD
LTO APPROACH FOR Q 3 2025 SUMMER FLAVORS
SUMMER COCKTAILS ARE ALL ABOUT REFRESHING AND VIBRANT FLAVORS THAT CAPTURE THE ESSENCE OF THE SEASON.
Think of zesty citrus notes from lemons and limes, the sweetness of ripe berries, and the tropical hints of pineapple and mango. 53% of consumers drink still wine cocktails during the Summer, while 48% consume sparkling wine cocktails.
Wine-based cocktails add a sophisticated twist, blending the crispness of white wine or the richness of red wine with fresh fruits and herbs. Sangria combines red wine with oranges, apples, and a splash of brandy and thrives within Upscale and Traditional Casual Dining establishments. White wine spritzer offers a light and bubbly option perfect for hot summer days and is gaining traction with menu penetration growing +17% vs year ago. Sparkling wine is in the top 6 favorite base spirits included in cocktails consumed outside of home. Other tried and true wine-based cocktails include mimosas and bellinis that thrive during breakfast and mid-day hours. Cheers to delightful summer sips!
Sources: CGA by NIQ OPUS US (Fall 2024), Technomic Q1 24, CGA by NIQ BeverageTrak, L12w to Sept 30 2023
HERBAL STONE FRUIT WHITE SANGRIA
4 oz Herbal Liqueur
6 oz Lillet Blanc
4 oz Simple Syrup
1 Bottle Chenin Blanc chilled
4 Nectarines sliced
½ cup Red Grapes
8-10 Sprigs of Fresh Thyme
Preparation: Add Herbal Liqueur, Lillet Blanc, fruit, and a few springs of Thyme to a serving pitcher. Let sit for a few hours. When ready to serve, add chilled Chenin Blanc. Serve over ice, and garnish with a sliced of nectarine, grapes, fresh sprig of thyme and dill.
WINE FEATURE
Chenin Blanc is a versatile white wine grape variety known for its ability to produce a wide range of wine styles, from dry to sweet and even sparkling. Originating from the Loire Valley in France, it is celebrated for its high acidity and rich flavors, which can include notes of green apple, pear, honey, and floral undertones.
Chateau Ste. Michelle offers a limited release Chenin Blanc (Click here) with a crisp and refreshing profile. It pairs perfectly with light dishes such as salads, seafood, and poultry, enhancing the dining experience with its bright acidity and balanced sweetness.
UPCOMING DRINK HOLIDAYS
EXTRACTING THE ESSENTIAL
NATIONAL ACCOUNTS ON-PREMISE CUSTOMER DEVELOPMENT