Beverage Dynamics Winter 2025 | Page 6

DATA DRIVEN

Spending Down, Price Sensitivity Up by MELISSA DOWLING

As part of our ongoing tracking of the industry, the Beverage Information Group surveys our readers quarterly, collecting trends / sentiment data from distributors, on-premise and off-premise operators. Our most recent study, conducted in October 2025, found ready-to-drink( RTD) beverages continuing their roll: 35 % of retail respondents and 9 % of on-premise operators said that’ s the category whose increase in sales was most impacting their business right now.
Twenty-four percent of retailers said that the rise of THC / CBD-infused beverages( where legal) was also affecting their businesses. It’ s no surprise, then, that a quarter of retail respondents said that they would expand shelf space for more THC / CBD drinks if they could.
RTDs also tied with THC / CBD drinks as the category generating the most buzz off-premise, followed by tequila. On-premise participants report that mocktails / alcohol-free spirits are buzziest category, followed by a tie between hard seltzers and RTDs.
Domestic beer is the category whose decrease in sales was most impacting their business right now for both off-premise( 19 %) and on-premise( 18 %) respondents. Stores are also seeing a worrying decline in sales of red wine and craft beer, while bars and restaurants said the other problem categories are craft beer, imported beer and brandy.
The Old Fashioned was the most popular cocktail on-premise, while vodka was the most popular spirit sold at the participating stores. The percentage of respondents reporting more interest in low- / no-alcohol options rose in both sectors, from 29 % in the second quarter to 36 % in the third for the retailers, and from 27 % to 36 % for bars and restaurants.
But customers are buying less overall, according to 58 % of off-premise respondents and nearly half( 49 %) of the on-premise. And the respondents reporting increased consumer price sensitivity rose from 38 % to 41 % for the on-premise, and from 36 % to 52 % for the off-premise.
The percentage of retailers saying that customers were spending less money or buying less-expensive brands jumped from 52 % in the second quarter to 65 % in the third quarter. More of the bars and restaurants( 35 %, up from 25 % in the previous quarter) said guests were spending less money or buying less-expensive brands.
For more information about our beverage reader surveys and for pricing information about adding questions to upcoming surveys, contact Debbie Rittenberg at drittenberg @ epgacceleration. com.
30 %
25 %
WHAT CATEGORY’ S INCREASE IN SALES IS MOST IMPACTING YOUR BUSINESS RIGHT NOW?( TOP 5)
25.0 %
ON-PREMISE
AT THIS TIME, HOW WOULD YOU CHARACTERIZE YOUR OUTLOOK FOR SALES FOR THE REMAINDER OF 2025?
ON-PREMISE
20 %
15 %
10 %
15.9 %
9.1 % 9.1 % 9.1 %
Likely be Below Expectations 27 %
Likely Exceed Expecations 16 %
5 %
0 %
40 % 35 % 30 % 25 % 20 % 15 % 10 % 5 % 0 %
4.5 %
Domestic Beer
Craft Beer
Red Wine
Vodka
Ready-to-Drink
( RTD) cocktails
5.9 %
8.8 %
OFF-PREMISE
5.9 %
Domestic Beer
Tequila
Hard seltzers /
flavored malt
beverages
35.3 % 23.5 %
Ready-to-Drink THC / CBD-infused( RTD) cocktails beverages
Mocktails alcohol-free spirits
8.8 %
Mocktails / alcohol-free spirits
Likely Meet Expectations 57 %
OFF-PREMISE
Likely be Below Expectations 55 %
Likely Exceed Expectations 10 %
Likely Meet Expectations 35 %
6 Beverage Dynamics • Winter 2025 www. beveragedynamics. com