Summer retail beverage alcohol sales appear mixed on the heels of a slow start to 2024. Overall alcohol sales remain soft, but many traditional summer libations are shining bright. “Our Fourth of July sales were much better this year, mostly because the New York City fireworks were on the New Jersey side of the Hudson as opposed to the Long Island side,” says Armando Luis, owner of the two Sparrow Wine & Liquor Co. retail stores in Hoboken, New Jersey. “The RTDs and hemp-infused seltzers, which we call alternative beverages, show the biggest growth trends, but there’s also strong growth from rosés, Sauvignon Blanc wines, Tequila, and mezcal.”
New Zealand Sauvignon Blanc offerings Kim Crawford ($15 a 750-ml.), Oyster Bay ($15), Cloudy Bay, and Craggy Range Te Muna ($25) are spearheading growth. Rosé leaders include Wolffer Estate Summer In A Bottle Rosé ($25 a 750-ml.), Wolffer Estate Rosé ($18), Château d’Esclans Whispering Angel Rosé ($23 a 750-ml.), and The Pale Rose Vin De Pays Du Var By Sacha Lichine ($15). “Rosés are holding onto a strong base and moving up in price points,” Luis says.
Alternative beverages represented 5.5% of Sparrow’s total sales in 2022. Now they represent 8.5%. “Traditional beer was 17% in 2022, and now it’s 15%,” Luis says. “Alternative beverages are taking a lot from beer and entry level wines. When alternative beverage sales are combined with beer, they represent one-third of the group’s total sales.”
Spirits-based RTDs remain a growth catalyst. “The spirits-based RTDs are becoming a bigger component of the aggregate malt-based and spirits-based RTDs,” Luis says. “High Noon continues pulling a lot of the category. The High Noon variety pack (ranging from $22 to $24 for an eight-pack of 12-ounce cans) is on fire. The field is becoming crowded, so we’re very judicious because of huge quality differences.”
In spirits action at Sparrow, Tequila and Mezcal continue to be hot, although cooling a bit price-point wise. From a smaller base, liqueurs are strong, including Aperol ($28 a 750-ml.), Campari ($35), and amaro ($50 a 750-ml.). “We have moved from the $70 to the $60 price point in Tequila,” Luis says. “Casamigos ($50 a 740-ml. of Blanco) is a monster.”
Local New Jersey craft beers such as Kane (from $14 to $22 a four-pack of 16-ounce cans), Other Half (from $19 to $24 a four-pack of 16-ounce cans), and Tonewood (from $11-$14 a six-pack of 12-ounce cans) are sometimes outselling top national brands on a SKU versus SKU basis at Sparrow. “Some of the beers produced within driving distance from our shop have a great turnover because the beer is fresh,” Luis says.
In Miami, Florida, the three-unit convenience store chain Mendez Fuel experienced lackluster alcohol sales around July Fourth despite growth for alternative beverages, summer wines, IPAs, Cheladas, and ciders. “Sales were down 5% because people are on vacation and the economy is down,” says vice president of operations Andrew Mendez. “Price increases don’t stop. That’s not helping.”
Since the beginning of June, Mendez’s wine sales have been trending upward. Leaders include Gulp Hablo Orange Wine ($23 a liter), Wolffer Estate Summer In A Bottle Rosé ($27 a 750-ml.), Las Jaras Glou Glou ($29), Superbloom ($29), and 2021 Sweet Berry Wine ($35). “People want something refreshing and something they trust,” Mendez says. “I’m getting a lot of movement on regular wine with Josh Sauvignon Blanc ($16). It’s non-stop for me here.”
At the Mendez stores, Mama’s Cannabis Infused drinks ($6.49 a 12-ounce can) and Delta Cannabis Seltzer ($6 a 12-ounce can) are big sellers. “Some people would rather drink a non-alcoholic beer or CBD drink,” says Mendez. “We are in a weird gray zone the way people are drinking. People are looking for a balance.”
Popular spirits-based RTD brands at Mendez include Betty Booze Sparkling Tequila ($26 a six-pack of 12-ounce cans) and vodka spritzer Sprinter By Kylie Jenner ($20 an eight-pack of 12-ounce cans). “Every celebrity now is doing one, including spirits-based RTD Gin and Juice by Dre and Snoop ($27 an eight-pack of 12-ounce cans),” Mendez says.
A lukewarm economy and inflation are taking a toll elsewhere as well. At Sal’s Beverage World, a three-unit retailer in the Chicago suburbs, overall sales were flat this July Fourth compared to last year. “But I lost three points in margin getting there,” says owner Vince Liotta. “The spirits category was up overall with vodka seltzers and RTDs leading the way with growth. Wine was slightly down, and the beer category was slightly up, led by Modelo ($17 a 12-pack of 12-ounce cans.).”
As the summer continues heating up, Sparrow’s Luis is keeping his finger on the industry pulse. “Even though Hoboken is a microcosm and high-end market, the trends are almost always aligned with national trends,” he says. “January and February were scary, but the spring and summer have been positive. We’re cautiously optimistic.”
Mendez is keeping a close eye on business and looking for ways to spark sales. “I want to figure out what the next trend is going to be, so I can spice things up,” he says.