by KYLE SWARTZ
2025 Spirits Supplier of the Year is Heaven Hill Distillery. Founded in 1935, Heaven Hill has survived and thrived during the industry’s up and downs for 85 years, including a 1996 fire that nearly wiped out the company ’s entire production plant in Bardstown, KY. While production subsequently moved to nearby Louisville, the company recently started distilling again in Bardstown with the opening of its Old Heaven Hill Springs Distillery.
Heaven Hill boasts several brands that remain in growth mode despite the current industry pullback. These include 2025 Growth Brands Awards Winners Elijah Craig, Heaven Hill, Widow Jane, Lunazul Tequila and Tequila Ocho.
How did Heaven Hill perform so well during the past year? For answers, we recently spoke with Kate Latts, co-president, Heaven Hill Brands.
BEVERAGE DYNAMICS: HOW DID HEAVEN HILL SUCCEED SO MUCH DURING A DIFFICULT YEAR FOR THE INDUSTRY?
KATE LATTS: We’ve always led with a long-term view. Our independence and family leadership allows us to stay disciplined, focusing on our people, our brands and our partners. That commitment to building with integrity and investing for the future gave us the resilience to not just withstand the challenges, but to keep growing with intention.
BD: WHICH BRANDS LED THE CHARGE? WHY DID THESE BRANDS CONNECT SO WELL WITH CONSUMERS?
KL: Agave has been a true growth engine for us. Lunazul Tequila continued its remarkable rise as an approachable, handcrafted tequila, while Tequila Ocho has shown consumers the beauty of single-estate, terroir-driven tequila. At the same time, our American Whiskey portfolio — led by Evan Williams, Elijah Craig, our namesake Heaven Hill Bottled-in-Bond family and the launch of Old Fitzgerald 7−Year — remains foundational. These brands connect because they balance authenticity and discovery: tequilas that feel vibrant and of-the-moment, alongside whiskeys that carry heritage and staying power.
BD: WHAT IS HEAVEN HILL DOING TO REACH GEN Z AND MILLENNIAL CONSUMERS?
KL: We’re intentional about meeting consumers where they are. That means showing up in culture — through music, sports and digital content — but always in ways that feel authentic. Lunazul has built exciting NBA partnerships, Deep Eddy brings its real-fruit spirit to festivals and tailgates, and Elijah Craig connects through PGA and cocktail culture with Old Fashioned Week. What unites it all is that we’re not just marketing spirits; we’re creating experiences that are memorable, relevant and worth sharing.
BD: WHAT NEW PRODUCTS DID HEAVEN HILL LAUNCH IN THE LAST YEAR?
KL : Innovation is part of our DNA. This past year, we introduced Deep Eddy Pineapple, the brand’s first new flavor in several years, and expanded our Elijah Craig line with special Barrel Proof and limited cask finish releases. We also brought new energy to our Heaven Hill Bottled-in-Bond family and introduced Grain to Glass whiskeys that take consumers from heirloom corn in the field to the final pour. The launch of Old Fitzgerald 7−Year brought fresh excitement to one of our most cherished brands, and our partnership with culinary expert Gail Simmons elevated the connection between food, flavor and whiskey. Every launch reflects our balance of honoring tradition while pushing what’s next.
BD: WHAT MARKETING CAMPAIGNS AND/OR PROMOTIONS WORKED WELL FOR HEAVEN HILL IN THE LAST YEAR?
KL : Several brand campaigns really stood out. Elijah Craig’s Old Fashioned Week has become a tentpole moment, bringing people together around the number-one classic cocktail while giving back more than half a million dollars to hospitality workers. Lunazul showed up court-side with the NBA, making tequila part of the game-day experience. Tequila Ocho brought its vibrant spirit to life with mural art and cocktail culture, and Deep Eddy leaned into fun, real-fruit storytelling with the launch of Pineapple. Evan Williams continued its American-Made Heroes program, honoring veterans and supporting the causes that matter to them, while also expanding its NCAA partnership through Learfield — launched in 2024 and broadened in 2025. These campaigns worked because they connected our brands to real moments of culture and community.
BD: WHAT’S NEXT FOR HEAVEN HILL IN THE YEARS AHEAD?
KL: We’re building for generations, not quarters. That means continued investment in American Whiskey leadership, with the opening of our new Heaven Hill Springs Distillery in Bardstown , alongside the growth of our agave portfolio. We’re also committed to sustainability, reducing our carbon footprint, conserving water and supporting regenerative agriculture. As we mark 90 years, our vision is clear: to remain an admired global supplier of consumer-beloved brands, thriving together as a family-owned company for decades to come.
by KRYSTINA SKIBO
The global wine industry currently faces a mix of significant challenges and opportunities , leading to a complex and somewhat difficult economic climate. While the industry is not in complete freefall, it is grappling with several headwinds that have led to a decline in overall wine consumption in many key markets.
SipSource data shares this concern, stating earlier in 2025 that the wine category continues to struggle, with persistent volume and revenue declines raising concerns about the category’s long-term trajectory.
Despite this dispiriting outlook, certain wine companies and vineyards have found ways to thrive, offering consumers unique experiences and flavors to keep them interested in wine.
Treasury Wine Estates, for example, has captured palates across the country through some of its wine brands. With the rising trend in low- or no-alcohol beverages , lower-ABV Matua Lighter has skyrocketed in popularity, winning a Rising Star award from the Beverage Information Group’s 2025 Growth Brands Awards.
Similarly, in 2023, Matua Lighter also won a Rising Star award, showcasing the brand’s choice of wine for consumers across the country.
All these awards have led to Treasury Wine Estates earning the title of Beverage Information Group’s 2025 Wine Supplier of the Year.
Available in over 70 countries, Treasury Wine Estates is one of the world's largest wine companies, and has undergone a significant strategic transformation over the past few years, moving away from a broad portfolio to a more focused, luxury-led business model.
"Treasury Wine Estates’ focus on premiumization, luxury offerings and engaging the evolving consumer positioned us for success," explains Neb Lukic, president, sales and marketing, Treasury Americas. "At Treasury Americas, we completed
our transition to a luxury-focused, estate-led portfolio this year, reinforcing our position as the number-one luxury wine supplier in the U.S. Premium and ultra-premium tiers have remained resilient , supporting strong performance across our luxury brands. DAOU Discovery is the top cabernet sauvignon in the U.S. priced above $20, and Frank Family Vineyards is the number-two super-luxury chardonnay."
Treasury Wine Estates’ growth has been largely driven by a clear strategy of premiumization , focusing on higher-priced, luxury wines. TipRanks data explains that this has been a key factor in their financial performance, as these segments
are more resilient to the economic headwinds impacting the rest of the market.
Treasury Wine Estates’ luxury portfolio, which includes flagship brand Penfolds, has been the supplier’s primary engine of growth. The luxury segment has helped so much that the company reported a strong performance in the first half of 2025, according to TipRanks data.
“Key financial metrics showed significant growth, with earnings before interest and taxes (EBITS) increasing by 35.1% to $391.4 million, and net sales revenue (NSR) for its luxury portfolio rising by 52%,” the data states. “This luxury segment now constitutes approximately 56% of the total group NSR.”
Treasury Wine Estates also highlighted an 11% growth in DAOU Vineyards’ NSR within Treasury Americas, and announced an upgrade in cost synergies from the acquisition to a total run rate of $35 million, up from the previous guidance of $20 million-plus.
Another part of Treasury Wine Estates’ growth strategy is divesting its lower-margin , commercial wine brands, according to Meininger’s International. The company announced plans to sell off brands like Wolf Blass and Blossom Hill, which were once staples of its portfolio but are struggling with declining consumer demand. This move allows the supplier to concentrate its resources on more-profitable, high-end wines.
In 2023, Treasury Wine Estates made a significant move by acquiring the fast-growing luxury wine brand DAOU Vineyards in California. This acquisition
was a clear statement of intent, cementing the supplier's focus on the U.S. luxury market and providing a strong, new-world presence alongside its existing brands like Beringer Vineyards and Frank Family Vineyards.
Treasury Wine Estates has also made strategic investments in China, according to Vino Joy News. Following the lifting of punitive tariffs on Australian wines, the supplier has re-established its presence and has even acquired a controlling stake in a Chinese winery, Stone & Moon, to support the local production of its Penfolds brands.
Expanding the No- and Low-Alcohol SegmentCapitalizing on the lower ABV Matua Lighter, in June of this year, Treasury Wine Estates announced the opening of a new $15−million, in-house facility that's dedicated to "low and no" alcohol wine production in the Barossa Valley.
More than two years in the making , the new facility features state-ofthe-art dealcoholization technology, complemented by a world-first patent pending processes for treating the aromatic component of wine that locks in flavor, according to the supplier.
The facility produces low- and no-alcohol wines for iconic brands in Treasury Wine Estates’ global portfolio , including Squealing Pig and Pepperjack , which will complement other low- and no-alcohol offerings in the Matua, 19 Crimes, Lindeman’s and Wolf Blass brands.
Joining these established global brands is the new-to-market Sorbet, which blends traditional varietals like prosecco, rosé, sauvignon blanc and shiraz with fruit and berry flavors such as passionfruit, mango and lemon, and a lower ABV of 8%. Sorbet will be available in October 2025 in partnership with Endeavour Group, according to the supplier.
While Treasury Wine Estates’ luxury and low-alcohol-led strategy has yielded positive financial results, there are also some mixed signals. The company has openly acknowledged the “softness in consumer demand at lower price points,” which has led to a decline in its premium and commercial portfolios. This decline underscores the necessity of its strategic shift towards luxury wines.
Treasury Wine Estates has not simply grown over the past few years; it has strategically transformed. By divesting from struggling commercial brands and aggressively investing in premium and luxury labels through acquisitions and market expansion, the supplier has successfully positioned itself to navigate the challenges of the modern wine industry and capitalize on the consumer trend of "drinking less but better." This is particuarly relevant with younger consumers. "Our consumer insights team gathers and analyzes insights , which we use to develop effective strategies and tactics that resonate with each consumer group. For Gen Z and Millennials, we’ve observed two key themes: a desire for authenticity and premium quality — and we build to those needs," says Lukic.
"We prioritize digital storytelling, DTC and e-commerce, and disciplined innovation that brings estate character to new formats and occasions," he adds. "Beaulieu Vineyard’s 'BV Was There' campaign, for example, blended a century of heritage with contemporary culture — vinyl, music and classic bar moments — to meet Millennials where they are, while reinforcing BV’s luxury credentials."
Meeting consumers where they are, and matching their passions and values, has never been more important.
"While all our estate-led brands engage distinct audiences, DAOU and Frank Family Vineyards led through culturally relevant, purpose-driven partnerships that translate storytelling into experiences," Lukic says. "In April, we launched 'DAOU on the Green', an exclusive partnership with LIV Golf that takes the vineyard experience to the course — meeting consumers in an unexpected setting and deepening loyalty."
Elsewhere, "Frank Family continues to turn passion into impact through Frank for a Cause," he adds. "As a Certified Cleanup Partner with 4ocean, the winery is helping remove 50,000 pounds of plastic and trash from oceans, rivers, and coastlines — connecting consumers to a mission they value."
Looking ahead, the company plans on doubling down on what differentiates Treasury in luxury: immersive experiences , culturally relevant partnerships and insights-led innovation , all underpinned by sustainability.
"At Beaulieu Vineyard, a comprehensive estate renovation is underway to honor 125 years of heritage and elevate hospitality," Lukic says. "Set for completion in spring 2026, the project restores the original 1880s stone structures and adds an open-air tasting courtyard, a club lounge, and a wine library — built with repurposed and sustainable materials, solar power, EV parking and an all-electric kitchen."
"We’ll continue to meet consumers where they are through best-in-class experiential programs," he adds. "DAOU’s partnership with LIV Golf is building awareness and loyalty, and we’ll extend that playbook as DAOU serves as Official Wine and Global Supplier for the Laver Cup in San Francisco in September — activating at scale with our distributor partners to deliver flawless retail and on-premise execution."
"Etude anchors our sustainability agenda," he continues , "preserving two-thirds of Grace Benoist Ranch as wetlands and woodlands, cultivating native, water-wise habitat with the Xerces Society and farming regeneratively with precision irrigation and recycled water. Across Treasury Americas, all wineries have run on 100% renewable electricity since 2023, and Treasury Americas received the 2023 California Green Medal Award — with Etude as a blueprint." •