Beverage alcohol retailers are riding a wave of high-end wine and spirits growth into this year’s crucial holiday shopping season. With the on-premise squeezed by the Covid-19 pandemic, the retail tier continues scrambling to meet surging demand. Online orders and curbside pickup have become essential elements of the mix. “Probably the biggest change and challenge has been supply issues,” says Lindy Steele, store manager of Mid Valley Wine & Liquor in Newburgh, New York. “Many wine and spirits brands are hard to find right now thanks to Covid, but the fires in California also haven’t helped. We were warned by our suppliers to expect many popular brands to be out of stock before the end of the holiday season. Thankfully we were proactive and stocked up heavily.”
Other retailers are also struggling to keep up with supply and demand. “In our market there are a huge number of whiskey drinkers and Bourbon hunters and we struggle to meet that demand,” says Josh Robinson, co-owner of Argonaut Wine and Liquor in Denver. “The demand for single-barrel picks and allocated items is staggering. Another category on fire for us is RTD cocktails. We added three stand-alone coolers for RTDs and keeping them cold seems to make a big difference for our customers.”
Leading The Charge
Super-premium RTDs, rosé wines, Bourbons, and Tequilas are leading the charge toward the end of an unforgettable year. Rosé wines remain hotter than ever at retail. “Rose remains in demand year round and has a wide-ranging audience,” says Steele. “Many customers have figured out just how versatile it is with food. One that really took off this year for us was the 2019 Brunn Blauer Zweigelt rosé ($16 a 1-liter).”
Argonaut’s three biggest growth categories have been Bourbon, Tequila, and RTDs. Brands leading the way include Buffalo Trace ($24 a 750-ml.), Exotico Blanco and Reposado ($26 a 1.75-liter), and Monaco RTDs ($3 a 200-ml.)
Mid Valley Wine & Liquor selects private barrels from companies such as Knob Creek ($51 a 750-ml.), Widow Jane ($100), Four Roses ($90), and 1792 ($50) and has them bottled exclusively for the store. “These picks are always a lot of fun to do for ourselves and the customers who have grown to recognize them,” says assistant manager Dan Walski. “We’ve got quite a few lined up for next year and these provide a great opportunity for both types of consumer to obtain a unique product they won’t find anywhere else from some of the distilleries they already know and love.”
Booming Online Sales
With Covid-19’s second wave growing during cold weather, online retail sales remain essential. “The in-store shopping will be less because we do a lot of online orders,” says Matt Landolt, manager of Viscount Wine and Liquors in Wappingers Falls, New York. “It might not increase our business but it would decrease the crowd. That would be a good thing because we don’t want to have a really crowded store.”
Argonaut’s online sales have grown significantly during the pandemic from 5%-10% of daily business to 15%-20%. “Due to in-person shopping restrictions and exploding Covid-19 numbers, I expect this trend will continue through this holiday season and well into 2021,” Robinson says.
Argonaut recently added curbside pick-up to its shopping options. “Pick-up and delivery business has exploded,” says Robinson. “Keeping the store properly staffed to be able to pull all our delivery, in store pick up and curbside pickup orders while balancing social distancing issues and keeping shelves stocked has been quite the challenge.”