EDITOR ' S NOTE

How should we describe the current state of the U . S . economy and alcohol industry ? Odd , for sure .

For years we discussed how the pandemic upset everything . Virtually overnight our economy changed completely . Then Covid−19 receded , followed by ruinous inflation . Those prices have cooled , but certainly remain high in some cases . ( Food , especially .) However , we do appear out of the woods in terms of the worst of it .

So where does that leave our industry ? We ’ re obviously post-Covid , and likely post-post-Covid as well .

Bourbon might be the poster child for this transition period . Bottles that flew off the shelf a few years ago now sit longer . Single barrel store picks are no longer easy sales . Many customers overbought during the pandemic , filling up their home bars and basement bunkers . There ’ s simply no more room for new bottles .

Meanwhile , retailers and distributors remain overstocked with products following Covid-era buying sprees . All while distillery construction in Kentucky and elsewhere races ahead . Will demand keep up ?

Elsewhere , younger generations of consumers will only grow bigger in economic impact . Gen Z do not seem to be heavy drinkers . Like Millennials , they drink less but better — but definitely less . Critically , neither generation particularly cares for wine . Both groups have also had their budgets hammered by economic challenges , resulting in less discretionary spending . Cutting down on alcohol has become a simple way to save .

And then : the presidential election . Forgetting ( insanely ) all the lead-up drama about advanced ages and candidates dropping out or getting shot at (!), November will bring its own kind of chaos . Both parties represent potential fi- nancial issues . Trump talks tariffs and Democrats tend to overspend . But speaking as someone who previously covered national politics for newspapers , one president ' s policies are rarely enough to upend an entire economy . Regardless of who occupies the White House , we should be fine — financially , at least .

Which is all to say that I think the two biggest issues moving forward are the future of bourbon , and the drinking preferences of younger generations . How those shake out will matter significantly as we continue into post-post ( -post ?) Covid , an odd time of transition for the industry and the economy as a whole .

Beverage Group Vice President Jeremy Nedelka Tel : 763-383-4413 email : jnedelka @ epgacceleration . com

Editor , Off-Premise Kyle Swartz Tel : 763-383-4447 email : kswartz @ epgacceleration . com

Trade Managing Editor Krystina Skibo Tel : 763-383-4419 email : kskibo @ epgacceleration . com

Contributing Editors Melissa Dowling , Marnie Old , Tom Shay

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Associate Managing Art Director Nicole Siewert

Senior Product Manager , Data & Insights Marina Velez Tel : 763-383-4453 email : mvelez @ epgacceleration . com

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Kyle Swartz Editor , Off-Premise

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