The retail spirits market has been a rollercoaster lately. Bourbon and tequila prices soared in recent years. A fad-like spike in popularity fueled this surge. Yet, it wasn’t all about enjoyment. Consumers hoarded bottles—especially bourbon—for speculative resale. Prices climbed higher as a result. Meanwhile, new producers rushed in to capitalize. Quality suffered with this flood of entrants. Established brands, however, kept raising prices to match their prestige.
Then, 2023-2024 flipped the script. Tequila and bourbon sales began to slump. Prices dropped sharply alongside waning demand. Now, in late February 2025, that decline continues. Bars, restaurants, and liquor stores feel the pinch. Many snatched up allocations at peak prices. Today, they’re left holding retail spirits that consumers are shunning.
While we have covered this topic in some detail over the past year, the effects are starting to be felt at the retail level. Many restauranteurs and liquor store owners report that they have regrets over chasing fads as they overpaid and are having difficulty unloading some stock.
Tequila’s Softer Landing vs. Whiskey’s Plunge
Not all spirits are slumping equally. Tequila sales growth is slowing, yes. But it hasn’t cratered like whiskey’s bourbon segment. Tequila retains a broader drinking base. Its appeal spans cocktails and sipping, softening the blow. Whiskey, though, leaned hard into speculative hoarding. That bubble burst harder in 2024. Bourbon’s decline stings more as resale hype fades. Tequila’s resilience offers a lesson. Retail spirits tied to real consumption weather storms better.
Protecting Your Business from Fading Fads
So, how can business owners stay ahead? First, resist chasing every overhyped trend. Fads in retail spirits fade fast. Instead, stock reliable sellers with proven demand. Research before splurging on limited releases. Are customers drinking it or flipping it? That distinction matters.
Next, diversify your offerings. Don’t hinge everything on one spirit type. Bourbon may tank, but vodka or whiskey could rise. A varied inventory cushions against sudden drops. Plus, it keeps customers intrigued with options.
Also, lean on supplier relationships. Trusted distributors often spot overhyped retail spirits early. They can steer you toward stable choices. This helps you sidestep brands destined to crash.
Best Practices for Spotting Brands with Staying Power
How do you pick retail spirits that endure? Here’s a list of five key indicators:
- Consistent Awards – Brands winning medals annually show reliable quality.
- Steady Sales History – Look for gradual growth, not sudden spikes.
- Consumer Loyalty – Check if fans drink it, not just resell it.
- Production Transparency – Distilleries open about methods often prioritize craft.
- Local Buzz – Regional popularity can signal lasting appeal.
Betting on Local and Craft Stability
Amid the chaos, a quieter trend shines through. Solid local and craft brands are gaining traction. Consumers increasingly favor quality over hype. These distilleries offer consistency, not flash-in-the-pan buzz. A smart way to sift through the flood? Look for award winners. Distilleries nabbing accolades year after year signal quality. They also show stability and sustainability. Unlike fad-driven brands, these producers build lasting appeal. Stocking these retail spirits can anchor your lineup. They’re less likely to lose value overnight.
Know Your Market, Win Your Niche
Finally, prioritize your local audience. National trends don’t always match regional tastes. Track what moves in your area. If bourbon’s fading nearby, pivot to what’s hot locally. Your own sales data beats speculative hype every time.
The takeaway is simple. High-priced retail spirits can burn you. Overhyped brands inflate costs, then flop. Stay cautious, diversify, and embrace craft stability. That keeps your pour decisions profitable.
