Understanding Consumer Behavior in Liquor Stores
Liquor store consumer behavior can unlock a valuable insight into higher profits. Retail liquor stores experience a diverse range of customers, from those who know exactly what they want to “shoppers” on the hunt for new products and ideas. Recent studies indicate that a significant percentage of liquor store patrons fall into the latter category, seeking innovative flavors or alternative brands. According to the Distilled Spirits Council, about 47% of customers are open to trying new products based on recommendations from store staff .
This insight highlights an opportunity for liquor store operators to influence buying behavior, guiding customers toward higher-margin products. Often, these individuals may gravitate towards well-known national brands because of their visibility, celebrity endorsements, or high-level marketing campaigns. However, these brands are not always the best choice in terms of quality or profit margins for the retailer.
JUST THE FACTS
The willingness of consumers to switch brands in a liquor store based on staff recommendations varies, but several studies offer insights into this behavior. According to a 2020 study conducted by the Distilled Spirits Council, approximately 46% of liquor store consumers are likely to try a new brand if it is recommended by store staff. This statistic suggests that nearly half of all shoppers are open to switching from their usual purchase when guided by a knowledgeable employee.
Additional data from a survey by NielsenIQ supports these findings, indicating that 42% of consumers in liquor stores rely on recommendations from store staff when making a purchase decision. This survey highlighted that customer trust in the expertise and knowledge of store staff plays a crucial role in influencing their choice of product.
Furthermore, research by the Beverage Information Group revealed that staff recommendations are more influential among millennials, with around 54% of millennial shoppers in liquor stores stating they would switch brands if advised to do so by store personnel. This group tends to value authentic and personalized experiences, which increases the impact of direct interactions with well-trained staff.
These findings demonstrate the significant impact that trained staff can have on brand switching behavior in liquor stores, especially when they can clearly articulate the benefits of craft or higher-margin products over national brands.
National Brands: The Reality Behind the Image

Many national vodka brands claim to be “handcrafted” or “small-batch,” yet their production methods tell a different story. In reality, the most popular vodka brands are mass-produced in industrial facilities, creating millions of gallons at a time. This scale of production often compromises quality, despite the branding and marketing that suggest otherwise.
Retailers frequently find that these national brands provide the smallest margins due to their high distribution costs and low wholesale prices. Furthermore, they are often forced to commit to buying these brands in bulk, which ties up capital and limits shelf space for more profitable products.
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Craft Brands: A Profitable Alternative for Retailers
In contrast, local or small distilleries offer ultra-premium products that are genuinely handcrafted and distilled in smaller batches. These products deliver higher margins at the same retail price point, benefiting both the retailer and the consumer. Craft spirits often provide a unique selling proposition that distinguishes them from their mass-produced counterparts.
For liquor store operators, the opportunity to promote these craft brands can be a game-changer. The key lies in training staff to recognize and recommend these options to shoppers, creating an experience that encourages customers to try higher-quality products.
Ten Strategies for Liquor Stores to Increase Profits with Craft Brands
Here are ten actionable strategies that liquor store operators can implement to direct their customers toward higher-quality craft products:
- Staff Training Programs: Train your staff to engage customers with knowledge about the unique aspects of craft brands.
- In-Store Tastings: Offer tastings of craft spirits to introduce customers to the flavors and quality of these products.
- Highlight Craft Brands on Shelves: Create prominent displays or sections dedicated to showcasing craft spirits in your store.
- Use Digital Signage: Leverage in-store screens to highlight the benefits and stories behind your selected craft brands.
- Customer Loyalty Programs: Incentivize customers to try new craft brands by offering discounts or rewards through loyalty programs.
- Promote Local Distilleries: Collaborate with local distilleries to provide exclusive products and promote these brands within your store.
- Engage on Social Media: Share posts about your craft selections and success stories from customers who switched from national brands.
- Educate on Quality vs. Quantity: Inform your customers about the differences in quality between mass-produced and craft spirits.
- Offer Pairing Suggestions: Train staff to suggest cocktail pairings that highlight the flavors of craft spirits, enhancing the customer experience.
- Track Sales and Feedback: Monitor which craft products sell best and collect customer feedback to refine your recommendations.
The Benefits of a Well-Trained Staff in Your Liquor Store
The benefit of training your liquor store staff is immeasurable. A well-trained staff plays a crucial role in enhancing both customer experience and store profitability. Liquor store employees who possess knowledge about products, trends, and customer preferences can significantly influence purchasing decisions. Here are some of the key benefits of having a well-trained team in your liquor store:

1. Increased Customer Satisfaction
Liquor store consumer behavior can be influenced by knowledgeable and engaged staff. When staff members provide accurate recommendations and product knowledge, customers feel valued and supported. This leads to a more enjoyable shopping experience, which increases customer satisfaction and loyalty.
2. Higher Sales Conversion Rates
A knowledgeable employee can guide customers toward products that suit their tastes or needs. This expertise often leads to higher sales conversion rates, particularly for high-margin craft brands that require some explanation.
3. Improved Upselling Opportunities
Staff trained in the nuances of different spirits are better positioned to upsell customers to premium options. Customers are more likely to switch to a higher-quality product when they understand its unique value.
4. Enhanced Store Reputation
Word-of-mouth recommendations stem from positive shopping experiences. When staff members provide great service, they enhance the store’s reputation, attracting more customers seeking expert advice.
5. Effective Promotion of Craft Brands
Craft spirits often require a story or background to appeal to consumers. Well-trained staff can effectively communicate these brand stories, driving interest in lesser-known but high-quality products.
6. Reduced Reliance on National Brands
With better knowledge of the local market and the benefits of craft spirits, your staff can guide customers away from lower-margin national brands. This strategy improves profitability by focusing on products with better margins and unique qualities.
7. Boosted Employee Morale and Engagement
Employees who receive proper training tend to feel more engaged and confident in their roles. This sense of empowerment not only boosts morale but also increases job satisfaction, leading to lower turnover rates.
8. Stronger Customer-Staff Relationships
Building a rapport with customers is easier for staff members who understand and anticipate their needs. Personalized interactions foster stronger relationships, encouraging repeat visits and higher lifetime customer value.
9. Increased Adaptability to Market Trends
A well-informed staff stays updated on market trends, allowing your store to adapt quickly to changing consumer preferences. This agility is crucial in the dynamic landscape of the beverage industry.
10. Higher Profit Margins
Ultimately, well-trained staff lead to higher profit margins by driving sales of higher-margin craft brands and increasing overall customer spend. Their influence helps to convert casual shoppers into loyal patrons who trust their recommendations.
Investing in staff training is not merely an operational expense; it is a strategic move that pays dividends in customer loyalty and increased sales. By prioritizing staff development, liquor store operators can unlock their team’s full potential to boost profitability and enhance the overall shopping experience.