Retail sales of RTDs, natural wines are off to a brisk start in 2025, but potential tariffs on imported wine and spirits would significantly impact beverage alcohol sales. “We believe tariffs will be extremely harmful to our industry,” says Gary Fisch, founder and CEO of the three-unit New Jersey-based Gary’s Wine & Marketplace. “There will be major pushback from consumers if they see significant price increases from tariffs. We would not be able to make up for the decrease in imported wine sales by selling more domestic products.”
At San Francisco-based Wine.com, imported wines accounted for a substantial portion of 2024 sales and 59.5% of the company’s revenue, while imported spirits represent an even greater share at 78%, according to founder and executive vice president Michael Osborn. “Domestic policy uncertainty, particularly tariffs, could significantly impact consumer demand for wine and spirits,” he says. “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.”
Retailers are paying close attention to volatile consumer trends. “There are so many options now that it’s very hard to pin down what you expect people to buy,” says Andrew Mendez, vice president of operations for the three-unit convenience store chain Mendez Fuel in Miami. “That’s why I go with week-to-week ordering. Even with the wine coming in, it’s hard to buy twice or once a month. There might be a customer who is always looking for a light beer lager, but then you have a customer who will buy three different kinds of beer. People sometimes want recommendations.”
During Dry January, Mendez Fuel experienced a spike in sales of CBD- and THC-infused drinks, as well as non-alcoholic beverages like the mushroom-based concoctions from Little Saints ($6 an eight-ounce can), the NA beers from Athletic Brewing Co. ($14 a six-pack of 12-ounce cans), and the spirit-free aperitif Ghia ($6 a 12-ounce can). In addition, Mendez saw strong sales of organic wines, such as Avaline ($19 a 750ml.) and Naturalis ($11 a 750-ml.). “I have also been selling a lot more Prosecco,” he adds.
RTDs continue evolving as the industry’s catalyst. Spirits-based premixed cocktail Monaco and the wine spritzer Briosa (both $3 a 12-ounce can) are popular at Mendez Fuel. The stores are also stocking up on sakes like Little Sumo ($6 a 200-ml. jar), Lucky Dog ($7 a 180-ml. carton), and Oishii ($13.69 a 250-ml. can). In the beer category, top-sellers include Corona and Modelo (both $14 a six-pack of 12-ounce cans) and IPAs, such as Sixpoint Resin ($16 a six-pack of 12-ounce cans), Terrapin Hopsecutioner ($14 a six-pack of 12-ounce cans), and Lagunitas Maximus Imperial ($5 a 19-ounce can). “The 19-ounce can is not a trend anymore,” Mendez notes. “It’s a staple.”
Retailers are making strategic investments. “Wine.com continues enhancing personalization and leveraging our product and consumer data to empower customers in making confident purchasing decisions,” Osborn says. “Another key initiative that’s significant given the shipping costs associated with every order is the strategic curation of our value-priced wine selection.” Wines priced under $15 accounted for less than 4% of Wine.com’s revenue in the fourth quarter of 2024, down from 7% in 2023. “This refinement led to an increase in the average price per 750-ml. bottle purchased, rising to $32.12 in 2024 from $31.23 in 2023,” Osborn says.
Expanding the spirits category is also a key priority for Wine.com. “While we’ve been selling wine for 26 years, spirits were introduced just five years ago, and many customers are still discovering our exceptional selection of premium offerings,” Osborn says. “However, unlike wine, which we ship to 41 states and Washington, D.C., our spirits sales are regulatorily limited today to just four states—California, New York, New Jersey, and Massachusetts—restricting the category’s overall reach and growth potential.”
In Bernardsville, New Jersey, a renovation at Gary’s added a new aisle to expand spirits and RTDs selections, as well as warehouse space to fulfill online orders. “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. The additional fulfillment capacity will help us maintain streamlined service for in-store and online guests.”
Fisch’s top 2025 objectives include highlighting the value of private-label wines, expanding event programming, and encouraging customers to be more experimental and open to new product categories. “We realize we are facing headwinds, but we are doing everything we can do to stay out in front of it,” he says. “We are confident we will continue to grow.”