Specialty grocer The Fresh Market is often cited by consumers as having the best produce, prepared foods, deli, and bakery of any supermarket chain in the country. If the company’s beverage alcohol team has its way, their department will soon join the ranks of its counterparts. “We have a customer base that’s affluent and looks for quality items,” says Olivier Kielwasser, adult beverage director at the Greensboro, North Carolina-based chain.
Indeed, the average sale price for a standard 750-ml. bottle of wine at The Fresh Market is $18—well above that of other supermarkets—while beer and spirits averages are also at a premium, Kielwasser says. But the retailer, who was named a 2008 Market Watch Leader when he was with the Giant Eagle supermarket chain, sees even greater opportunity down the road. Pointing to the chain’s well-heeled clientele, Kielwasser says he envisions the concept as not just a fine grocer, but more akin to a “nice restaurant,” with a beverage alcohol selection that matches the high standards of its food.
The Fresh Market operates 172 stores in 22 states, stretching from Massachusetts to Oklahoma, with the biggest concentration of units in the Southeast. Founded in 1982 by Ray Berry, a former 7-Eleven executive, and his wife Beverly, The Fresh Market is designed as a European-style food market, with features including locally grown produce, an Old-World-style butcher shop, in-store bakery, and fresh floral department. By 2010, The Fresh Market had gone public and expanded rapidly. Six years later it was taken private via an acquisition by Apollo Global Management, the New York-based asset management company. Then, in 2022, Chile’s Cencosud S.A. acquired a majority stake. Last August, Cencosud—with retail operations throughout South America—acquired the remaining shares of the U.S. grocery chain. Cencosud doesn’t report annual sales revenue for The Fresh Market, but the Chilean company put the figure at nearly $2 billion in 2021.
The Fresh Market’s boutique shopping experience is popular with customers, and the chain regularly receives accolades in consumer surveys. Last year, USA Today readers named it the overall best grocery store, as well as the top supermarket for bakery, deli, produce, and prepared food. “The guest experience is at the foundation of everything we do at The Fresh Market,” said CEO Brian Johnson upon receiving the award. “For our guests to recognize us as the best in so many categories is truly an honor and proof that our brand of impeccable hospitality is a differentiator in the industry.”
Wine Destination
The Fresh Market doesn’t disclose beverage alcohol sales data, but Kielwasser says sales are healthy. With spirits sales prohibited in groceries in most of the states in which it operates, wine accounts for 74% of the chain’s total beverage alcohol sales. Beer is next at 24% and spirits comprise just 2%. Nearly all of its units—162—sell beer and 145 stores offer wine, while just 12 stores sell spirits.
According to Kielwasser—a veteran wine retailer who joined The Fresh Market two years ago following positions at BevMo, Sam’s Club, and Giant Eagle—the average store sells between 600 and 700 wines, generally priced from $15-$50 a 750-ml. The selection is comprised of core items, as well labels that are popular in particular markets. “We make adjustments to the assortment based on local preferences,” Kielwasser explains, with a wider array of white wines and South American wines in Florida, for example, 71and more reds and sweeter wines in a market like Illinois. “Overall, we strive to carry the most important SKUs and the leaders within their segments in all stores.”
Premium wines are among the top sellers at The Fresh Market, including brands like LaMarca Prosecco ($18 a 750-ml. at the Greensboro, North Carolina store), Veuve Clicquot Yellow Label Champagne ($75), Whitehaven Sauvignon Blanc ($20), Kendall-Jackson Vintner’s Reserve Chardonnay ($15), and Santa Margherita Pinot Grigio ($28). As for individual segments, sparkling wine is growing rapidly, mostly driven by Champagne, and white wines are also expanding, including Sauvignon Blanc, Albariño, Vinho Verde, and white blends.
While the chain offers a few—mostly low-priced—private label wines sourced from California, Washington State, and South Africa, Kielwasser reveals that a broader portfolio will launch this year. “We’re working very actively on developing more higher-quality, higher-retail private-label items from the West Coast, Europe, and South America,” the retailer says. Among them is a Prosecco, that launched earlier this year.
Imported Beer Focus
Fresh Market stores offer between 250 and 400 beer SKUs, with 6-packs generally priced from $9-$16. While domestic brews like Michelob Ultra ($18 a 12-pack of 12-ounce cans) and Miller Lite ($14) are top performers, imports play a big role at the chain. According to beverage category manager Kristen Bennett—who is responsible for beer and spirits category assortment, as well as THC and non-alcoholic adult beverages—the stores feature numerous grocery items from around the world and executives “want our beer selection to match up with the rest of the categories. We pride ourselves on having a really great imported beer selection that we continue to grow.” Top-selling imports include Modelo Especial ($19) and Guinness ($12 a 6-pack of 11.2-ounce bottles).
While most stores stock core beer labels, the selection for craft brews varies depending on the market, says Bennett, who joined The Fresh Market in 2024 from Total Wine & More. Store team members, directors, and regional directors are “our boots on the ground,” she explains. “They know what their customers are looking for,” and work to have those items in stock. Among other beer styles, non-alcoholic brews such as Athletic Run Wild ($12 a 6-pack of 12-ounce cans) are “helping to bring the beer department further into the black,” Bennett says. Indeed, an expanded offering of non-alcoholic beer, wine, and spirits launched last July and, according to Bennett, “the growth has been tremendous.”
Fresh Market grocery stores that offer spirits are located in Illinois, Louisiana, and Massachusetts. The units stock between 100 and 200 SKUs, excluding RTDs, with an average price of $24 a 750-ml. Top-selling labels include Tito’s vodka ($21 at a Chicago store), Hendrick’s gin ($39), and Woodford Reserve Bourbon ($40). Spirits-based RTDs have been a major growth area, Bennett says, led by Surfside ($19 an 8-pack of 12-ounce cans) and High Noon ($32 a 12-pack).
Wine And Food Pairings
To drive sales of beverage alcohol, The Fresh Market aggressively cross-merchandises with other products around the store. Each month, stores receive a digital merchandising guide on how to execute displays. Beverage alcohol is a big part of that,” notes Kielwasser, pointing to the pairing of Champagne in the floral department, for example, and Prosecco next to fresh-squeezed orange juice. Designated wines are also showcased on meat cases, in the seafood department, and with pork and chicken. “We have identified the locations within the store that are most conducive to pair food and wine and to get the combined purchase of mwfood and wine,” the retailer says. “They remind people that The Fresh Market isn’t just a specialty grocer but a store that carries great wine too. The results have been very strong and help drive traffic to the wine department as well.”
The grocery chain utilizes other innovative merchandising tactics throughout the stores, which range in size; recently opened units average 29,000 square feet. Wine displays, for example, are themed, “90 Points for Under $20;” “Guest Favorites,” which highlights premium-priced wines; and “New Discoveries,” comprised of recently added products. Rather than case shippers, wine is merchandised in crates and wooden fixtures for a more upscale presentation. Electronic shelf labels, meanwhile, help provide accuracy and a streamlined look to the department.
In-store tastings led by suppliers are strongly encouraged, Kielwasser says. To further promote the beverage alcohol category, featured offerings are integrated into the chain’s daily emails, while The Fresh Market’s monthly magazine regularly includes an “alcoholic beverage presence,” the retailer says.
New Liquor Store
The Fresh Market’s commitment to growing its beverage alcohol business was exemplified last year with the opening of its first free-standing liquor store—Spirits & Wine—in Ponte Vedra Beach, Florida. The store—similar to those operated by Publix and Winn-Dixie—allows The Fresh Market to sell full-strength spirits in the Sunshine State. Adjacent to one of its grocery stores, the 7,000-square-foot liquor store stocks some 1,600 spirits and more than 2,500 wines, notes Kielwasser, adding that “the price points are elevated.” In fact, allocated spirits are a big focus of the store, he says, as “they really drive traffic.” Customer response to the liquor store so far has been “very enthusiastic,” he remarks. “People are amazed at the décor, the assortment, and the customer service.” Kielwasser adds that the company is “looking into” more free-standing liquor stores.
Continued expansion into spirits, coupled with even more premium wine offerings—including its own labels—will help further The Fresh Market’s reputation as a beverage alcohol destination. And according to Kielwasser and Bennett, it’s only a matter of time until the specialty grocer’s drinks department—like many of its other departments—is widely recognized as best in class.