RESILIENT BRAND by KYLE SWARTZ

The beverage alcohol retail industry remains in a period of pullback and reinvention. We are years removed now from Covid−19 boom times, with record sales replaced by stubborn drawdown. Driving these industry challenges are shifting consumer trends and a tricky economy troubled by rising costs.

Consumer behavior has changed, especially among the younger LDA generation, who increasingly drinks less alcohol. Conscious of both their health and their wallets— and coming of age during a time of Covid lockdowns and widespread cannabis legalization— Gen Z would rather stay home and consume THC.

This is a significant change from Baby Boomers, who love wine and spirits, and Millennials, who reach for whiskey and craft beer. Gen Z buying habits have benefitted no- and lowalc and hemp-derived cannabis beverages, at the cost of the rest of the alcohol industry.

Elsewhere, post-Covid inflation has cooled down from its eye-watering highs, but persists in our uncertain economy. Many consumers still feel the pinch, especially at the gas pump and while buying groceries. The on-and-off threats of tariffs, compounded by real and trade wars, has fueled further price spikes and consumer uncertainty in the market.

Another hangover from the pandemic was product buildup at distributors and liquor stores. As consumers slowed the Covid-era buying spree, cases accumulated at the middle and retail tiers. This has been another drag on the industry.

Altogether the result was continued choppy waters for many brands in 2025. But as our surprisingly large number of Growth Brands Awards winners demonstrate, many companies are figuring out how best to navigate our new era.

Numerous brands achieved growth during a time defined by fickle consumers and changing trends. We applaud all of our winners for their remarkable achievements. Here’ s what worked in 2025.

ADAPTING WITH MODERN TASTES

Many brands that excelled last year did so by tapping into modern consumer tastes. For instance, Pallini Limoncello,

from Lucas Bols Company, which won a Resilient Brand.“ We were able to succeed by leaning into the categories that are showing resiliency as we continue to deal with various headwinds our industry is facing,” says Brett Dunne, managing director U. S. and Canada at The Lucas Bols Company.

“ Our Non-Alcoholic Portfolio, Ready to Enjoy Cocktails Line, Additive Free Tequila and our leadership position in the next big spritz cocktail have all led to significant growth in those categories for us in 2025. Meeting the customer where they are in their drinking journey and being agile is the key to success. As a mid-size company, we are able to cut through some of the red tape larger companies experience, which has allowed us to pivot quickly and anticipate what our consumers and customers are looking for.”

“ Pallini Limoncello grew 8 %, and 2025 was our fifth consecutive year of growth since we became their U. S. importer in December of 2020,” Dunne adds.“ The rise of the Pallini Spritz cocktail as well as the introduction of Pallini Limonzero in 2024 is adding to the momentum we had coming out of the pandemic.”

Tequila was a bright spot for the spirits industry in 2025, inlcuding several Growth Brands winners.

“ Código’ s success this past year comes from aligning with a broader shift in how people are drinking tequila, but more importantly, from how we showed up in that moment,” says Sarah Ibarguen, senior brand manager for the Pernod Ricard-owned Resilient Brand winner.

“ We leaned into what makes Código special, an exceptional tasting tequila made with no shortcuts and no added colors or sweeteners, and ensured that story showed up clearly wherever consumers encountered the brand, whether

6 Beverage Wholesaler • Summer 2026 www. beveragewholesaler. com