At Frugal MacDoogal, the beverage alcohol retail chain with stores in Tennessee and South Carolina, November and December are marked by targeted efforts to inject excitement into the in-store shopping experience during the festive season. The holidays—and holiday-centric products—spark consumer excitement, says owner Charles Sonnenberg, and he adds that the stores “dress up” for the occasion. Signage and a designated gift area are standard buildouts for the season, he says, “and we back it up with our social media and emails, alerting people to what is available and trying to get them into a festive mood.”

Randall’s Wine & Spirits, with stores in Missouri and Illinois, takes a similar approach, as does Liquor World in Arkansas. “We build feature displays and bundle them into holiday promotions—think ‘gift center’ displays near the entrance,” says Randall’s Wine & Spirits owner Todd Randall. “We also spotlight them in digital ads and email campaigns since many people are shopping for gifts, not just bottles for themselves. The goal is to make it easy for a customer to find a unique gift to bring them in.”

At Liquor World, “We always set aside floor space for holiday offerings, whether that be eggnog, spiced wine, or special holiday packs,” says owner Kent Starr. “This is highlighted with signage promoting the Liquor World Gift center.”

In the current economic environment, these efforts may add a jolt of enthusiasm to an otherwise challenging time for many beverage alcohol brands. While efforts have evolved in recent years—fewer value-added and specialty packages, more limited-time offers, and more gifting-focused offerings—suppliers see big opportunity as consumers end the year with gatherings and special events.

“The holiday season is a time when consumers are naturally seeking festive, indulgent experiences, and beverage alcohol plays a central role in their celebrations,” says Matt Blevins, CMO for Heaven Hill Brands, noting that the company emphasizes “products that not only deliver great taste but also evoke a sense of tradition and festivity” during this time.

The holidays are a crucial selling season for Brown-Forman, says Marc Hindorff, director of trade marketing and advocacy. “Our strategy focuses on winning at retail by securing a dominant presence and prominence for our key brands,” he says. “We use holiday-specific products, especially value-added packaging (VAP), to make our brands really stand out in a crowded environment. By creating eye-catching, season-appropriate gift displays, we can secure premium floor space and placements in stores that are critical for capturing busy shoppers’ attention.

“The benefits are clear,” Hindorff continues. “Limited holiday releases give us a chance to tell authentic brand stories and showcase our innovation capabilities. This creates excitement with our core consumers and helps us attract new ones. We use the holidays as a way to educate consumers about all the festive ways they can enjoy our brands responsibly, whether it’s through a cocktail or as a perfect gift. This is another way we reach people who haven’t experienced our brands before.”

Heaven Hill’s Blevins adds that it’s not just about the products themselves, it’s the feelings they evoke. “Brands can inject excitement by creating a sense of ritual and celebration around the products themselves,” he says. “That could mean social content highlighting cocktail inspiration, in-store merchandising that cues gift-giving, or packaging that visually ties to the season.”

Gigi DaDan, general manager of Bacardi-owned Angel’s Envy, adds that the current challenging environment for beverage alcohol notwithstanding, “premium and luxury spirits continue to perform strongly during the holiday season, when consumers are more willing to trade up. We expect this trend to continue, with shoppers seeking products that feel meaningful to give or enjoy with friends and family,” she says.

What’s On Tap

DaDan says the winter holidays are “an important moment for our business, not only because it’s a key season for gifting and entertaining, but also because consumers are looking for something that feels elevated and special.” One answer to that desire is limited offerings from Angel’s Envy.

“At Angel’s Envy, we focus on creating limited, high-quality offerings that capture that sense of occasion while still feeling authentic to our brand,” DaDan says. “Releases like the new Angel’s Envy 10 Year Cask Strength and Bottled-in-Bond are the perfect example; they give enthusiasts and gift-givers something rare and highly collectible, while also showcasing our commitment to innovation and craftsmanship.”

Many suppliers will offer a range of options with holiday celebrations and gifting in mind. Proximo Spirits, for example, is focused on its luxury whiskey portfolio this year. “Drinkers today are eager to look beyond Kentucky and Scotland, seeking brands with authenticity, innovation, and a true sense of place,” says Lander Otegui, Proximo’s executive vice president of marketing and innovation.

Unique offerings on tap from Proximo include Stranahan’s Snowflake, the “legendary, one-day-only release” that’s held at the Denver distillery each December, as well Whiskey Atlas: Luxury Whiskeys from Around the World, a Flaviar tasting kit featuring award-winning expressions from Bushmills Irish whiskey, Stranahan’s American Single Malt, Tincup, Pendleton Whisky, and Great Jones Distilling Co. “We’re giving people new opportunities to taste, discover, and share something truly special this season,” Otegui says.

Brown-Forman leans heavily into whiskey during the holidays as well. “This holiday season, we’ll leverage a broader selection of tools to win over both retailers and shoppers,” says Hindorff, noting the importance of gifting during the season. “We’ll use branded gift bags next to products like Old Forester and Woodford Reserve, gift bows on Diplomático, and emotion-evoking displays for Jack Daniel’s whiskey.

“We’ll also embrace the idea of gifting smaller-format bottles like 375-ml., which are incredibly popular impulse and gifting SKUs,” he adds. “And, where legal, we’re activating in-store tastings and engraving events to create a memorable experience for the consumer. For brands like Old Forester, we are providing a one-stop solution for consumers planning their holiday gatherings, offering curated cocktail and food pairing recipes to make their celebrations easier and more enjoyable.”

Heaven Hill Brands is one of many suppliers honing in on winter or holiday-centric flavors this year. The lineup includes various eggnogs such as Evan Williams Original Southern Eggnog, Christian Bros. Holiday Nog, and Evan Williams Peppermint White Chocolate Eggnog. Regarding the latter, Blevins says “these innovative twists keep the brand fresh and appealing to younger legal-drinking-age consumers while giving loyalists something new to enjoy.” Carolans Irish Cream and Carolans Salted Caramel are two flavored extensions that allow consumers to experiment with festive cocktails or simple coffee pairings, Blevins notes, while Evan Williams Original Southern Spiced Apple and Fulton’s Harvest Pumpkin Pie cream liqueur capture the autumn and Thanksgiving seasons while also resonating through the end of the year.

At Spirit of Gallo, holiday-centric products aren’t prevalent, but the company has found success with its RumChata Peppermint Bark cream liqueur. From Diageo, Baileys in various winter or holiday-centric flavors—salted caramel, chocolate cherry, and others—is a perennial favorite. Pernod Ricard’s Kahlúa also has multiple options, with limited-edition flavors like peppermint mocha and gingerbread rum and coffee.

Many retailers look forward to the flavors suppliers release annually. “The excitement is primarily with flavors or special releases,” says Jim Shpall, owner of Applejack Wine & Spirits in Colorado. Additionally, Randall says holiday flavors increase basket rings in Arkansas. “Seasonal flavors help make for incremental purchases outside of something they would normally buy,” adds Randall. “The packaging also plays a big role as there is always competition among holiday flavors and the brands need to stand out.”

Simple packaging tweaks can make a big difference in consumer perception of or feelings about a brand around the holidays. Diageo’s Aviation gin is a prime example. This year the brand will release holiday-themed cocktail recipes and a merchandise collection tied to Spritzmas, a holiday campaign the brand launched last year, a spokesperson says.

Of course, some beverage alcohol brands naturally lend themselves to holiday consumption upticks, with or without holiday-centric packaging. Champagne Telmont, for example, eschews the extra bulk that often accompanies such efforts. The 800-g. bottles are “lightweight, elegant, and gift-ready with no additional packaging required,” the company contends.

New Approach Needed?

Retailer opinions vary on the efficacy of drinks suppliers’ holiday-centric efforts. Sonnenberg, for example, prefers limited-time offers (LTO) over holiday flavors. “Really the excitement is with time-limited products that are well-packaged because they create excitement—you want your consumer to see new situations and be stimulated by new opportunities,” he says. Holiday-centric flavors, meanwhile are “losing momentum” in his stores.

Randall agrees on the LTOs. “The limited nature creates urgency—customers know they need to buy now or miss out,” he says. “It’s almost like built-in marketing. Sure, it would be nice if some of that volume carried over into January, but in retail you embrace the peaks when you can.” In fact, Randall sees an upside to most of what suppliers have to offer for the fourth-quarter selling season, whether it’s seasonal flavors or holiday gift sets or something else. “Consumers like feeling like they’re getting something special,” he says.

Shpall says special packaging can be a boon “depending on the uniqueness and eye appeal of the packaging,” he says. “For the most part, packaging would need to be unique or higher-end but not with a higher cost.”

And for all the enthusiasm surrounding holiday-centric products and packaging, some retailers warn that suppliers are missing the mark. Lock Reddic, president of the Green’s Beverages Warehouse chain in Georgia and South Carolina, isn’t enthused about the “cheap and uninspiring sets” that seek traction each holiday season. “We only sell out of the top brands—Crown Royal, Jack Daniel’s, Don Julio, etc.,” he says. “Ordinary, mid-tier brands do not get a lift that could possibly pay for the investment of the…glassware, shot glasses, or mini bottles of flavored versions of themselves.” Reddic adds that Green’s dedicates some shelf space to the holiday products “but floor space and shelf space is so limited now that it’s a very tough call.”

Liquor World’s Starr contends that the holiday product selection over the past several years has been unexciting at best. “We have seen fewer packages and fewer new products each and every year,” Starr says, adding, “the number of pre-packaged gift packs have faded over the years.” So rather than focusing on what suppliers have to offer, he focuses on his customers. “For us it’s an exciting time for planning parties and providing our customers with our 40-plus years of knowledge to help our amazing customers have the best season possible,” he adds.

Reservations notwithstanding, the power of the holiday selling season can’t be ignored. And with the challenges currently impacting the industry—and the specter of Dry January right around the corner—industry executives at all tiers are hoping this year’s offerings resonate with consumers. “It’s true that the overall beverage alcohol sector has faced headwinds, but the holidays remain a bright spot because they bring elevated consumption occasions and a heightened interest in discovery,” says Heaven Hill’s Blevins. “We expect strong momentum this season driven by consumers trading up for special moments and leaning into trusted brands with festive offerings.”