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by KRYSTINA SKIBO

With American distillers already having suffered through damaging tariffs during the first Trump presidency, this next round is sending shocks of panic to beverage alcohol companies across the nation.

Cory Knopp, vice president of sales, GoSpotCheck, says tariffs are driving rapid shifts in shelf care, pricing and inventory management for beverage alcohol brands.

“ Any effective pricing strategy starts with visibility into what’ s happening at the store level so brands can understand trends, elasticity and category performance,” he notes.“ The industry is bracing for a period of potential volatility and disruption, and much of it is out of their control.”

If additional costs are passed directly to the consumer, brands can expect the pricing on menus and on shelves to be the first to be impacted, since bar owners and store managers adjust those price points. But how can others in the industry keep up with all these changes?

Knopp, along with other industry experts, suggest utilizing the power of technology and AI.

TECHNOLOGY ACTING AS A LIFELINE

The current volatile trade policy and tariff environment is forcing beverage alcohol companies to rethink not just where they source ingredients or packaging, but how they manage the contracts and relationships that underpin their global supply chains.

“ At Agiloft, we see technology— particularly Contract Lifecycle Management( CLM) systems— as a strategic lifeline,” says Agiloft CSO Prashant Dubey.“ CLM enables businesses to rapidly identify hardship and force majeure clauses, evaluate dynamic pricing provisions and renegotiate agreements with suppliers in real time.”

When unpredictable tariff changes hit, beverage alcohol companies can’ t afford guesswork. With the right CLM platform, they can gain visibility across their supply ecosystems, model cost impacts, and collaborate proactively with partners to find mutually beneficial solutions.

Bobby Burg, SVP & supply chain officer at Southern Glazer’ s Wine & Spirits, also reiterates the importance of technology acting as a lifeline for the company.

“ Technology and supply chain innovation are at the heart of how we continue to lead in this space,” he says.“ From predictive analytics and smart routing to enhanced warehouse automation and inventory management, these tools help us improve precision, agility and efficiency across our network.”

Southern Glazer’ s leverages AI to optimize delivery routes, forecast demand and make data-driven decisions that benefit both the company’ s suppliers and customers.

THE ROLE OF AI IN AIDING TARIFF DISRUPTIONS

Artificial Intelligence( AI) is a great tool for beverage alcohol companies to utilize to be

From predictive analytics and smart routing to enhanced warehouse automation and inventory management, Bobby Burg says these tools help Southern Glazer’ s to improve efficiency across its network.

able to keep up with all the tariff changes.

AI-powered image recognition, in particular, is helping field teams scan images from their phones to instantly capture and analyze data in real time. This technology lets suppliers instantly track product availability, spot shelf share changes and adjust product mixes to defend or grow market share. It also helps recalibrate pricing strategies and identify inventory gaps before they escalate.

“ Sudden tariff changes can lead to rapid shifts in shelf share by category, supplier and brand, making it critical for field teams to quickly capture and analyze retail execution— especially in independent accounts with limited visibility,” Knopp says.

Since tariffs can also directly affect pricing, suppliers and distributors use AI image recognition to adjust wholesale models so they can stay competitive without sacrificing margin, according to Knopp.

“ For on-shelf availability, these disruptions can cause sudden product removals, inventory imbalances and gaps in depletion data— challenges that can have an even greater financial impact than traditional recalls,” he warns.

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