2024 Beverage Alcohol Predictions
lieves that with consumers participating in more social gatherings now , experiences will be top of mind when it comes to their drink choices .
“ Consumers have become more choiceful and are prioritizing in-person experiences ,” Paulson notes in a webinar . “ In moving beyond the pandemic and celebrating in-person experiences , nightlife has been increasing across the U . S . As we continue to move further away from the pandemic , it ’ s setting up 2024 to be a better year for the spirits category .”
Brands lacking true authenticity or those with inferior production will start dropping out in droves in 2024 as gatekeepers and shoppers become more selective .
– Dan Butkus , President and CEO of Santos Spirits
Tequila Will Continue to Reign Supreme
Consumers ’ pallets are always changing , but Lombard says tequila is still hot and leading the pack . Even the mezcal category is gaining momentum .
“ Brands such as Mezcal El Silencio , Rosaluna and Bosscal are all doing very well ,” Lombard explains . There are a lot of different varieties you can make mezcal from . It ’ s kind of like drinking wine — how not all wines are the same and come from different regions . Mezcal has that approach , as well .”
But it ’ s not all sunshine and rainbows for the tequila category . Because it ’ s so popular , the market has become saturated with a multitude of tequila brands , making it increasingly difficult to stand out . Dan Butkus , President and CEO of Santos Spirits , says that brands will need to work extra hard to win over customers .
“ Brands lacking true authenticity or those with inferior production will start dropping out in droves in 2024 as gatekeepers and shoppers become more selective ,” he advises . “ Brands backed by private equity firms or those heavily leveraged will find it particularly difficult to weather the storm . Authentic tequila brands will continue to see gains , but brands with fewer legitimate credentials in the category will find it difficult to gain traction .”
Additive-free tequila will be a particular focal point for consumers in 2024 , according to Butkus . As more reviewers reveal additives in certain brands , it will turn customers away .
“ Additives have proliferated the tequila market , particularly to mask the bitterness of younger agave and other production shortcuts , or in an effort to conceal the flavor of agave to appeal to the vodka consumer ,” explains Butkus .
Luxury Spirits Will be Left on the Shelf
Even though the economy is proving to be resilient , inflation is still a challenge for consumers . Global factors are also weighing on shoppers , resulting in a great amount of cautious customers versus those willing to spend more .
Danny Brager , a SipSource Analyst , discussed in a webinar how these issues are impacting luxury brands ’ bottom lines . “ The luxury end is vulnerable while convenience stores and value retailers are gaining momentum ,” he explains . “ Consumers are looking for the most bang for their buck .”
When you get to the middle tier , which are bottles ranging from $ 17 to $ 100 , Brager says there are some offsets in growth from 2022 to 2023 . Even though 2023 was still down slightly , the segments are still relatively healthy .
“ The big challenge is the luxury end , which are bottles $ 100 and up ,” notes Brager . “ This segment was down more in 2023 than it was in 2022 , and the pressure will remain as consumers continue to restrain their spending .”
Consumers Are Reaching for White Wines
While it should come as no surprise that wine sales are
6 Beverage Wholesaler • Spring 2024 www . beveragewholesaler . com