July 17, 2026
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Where’s the Next Disruptor (or Differentiator) for Beverage Alcohol as Soft Sales Persist?
It’s been a talking point for beverage alcohol brands as well as retailers of the product: Booze sales are down across the board, according to NielsenIQ (NIQ) data, with all channels reporting dollar sales downturns in 2025.
As Kathleen Furore detailed in a Convenience Store News report, consumers are increasingly curbing their overall drinking while also turning to premium brands and experimenting with new flavors when they do decide to partake. Furore quoted Kaleigh Theriault, beverage alcohol thought leader for NIQ, on the subject.
“When shopping, people are seeking convenient locations, cold products for same-day consumption, and the ease of quick in-and-out of the store. Many shoppers continue to be time-starved. That’s where the convenience channel wins,” Theriault said, adding that the former disruptor of ready-to-drink beverages had solidified into a segment mainstay.
“[Ready-to-drink beverages are] permanent pillars of beverage alcohol, not disruptive outliers… Ready-to-drink products are especially important in the cold box, especially where spirits-based and wine-based [products] can legally be sold,” she added.
🇺🇸📉 NIQ: July 4 lifted bev-alc sales 19.9% WoW, but latest 4-week scans stayed red: dollars -3% YoY, volume -4.9%. Beer eased; craft worsened. https://t.co/Xsej5AkRea pic.twitter.com/2olzri0jOS
— Brewbound (@Brewbound) July 14, 2026
Other important notes pulled from the report:
- Wine sees particular strength in RTD: Despite off-premise wine sales being softer than usual, down 4.9% in 2025 versus 2024, the convenience segment saw an uptick of 10.5% largely boosted by RTD options.
- Premiumization doesn’t mean larger formats: Theriault underscored the fact that smaller formats, alongside single-serve products, were actually winners in the space, particularly given the continuing emphasis on value being exhibited by consumers.
- Speaking of singles: Singles represent “our largest dollar-growth driver year over year,” said Rutter’s category manager Cameron Baer. “Alongside strong case-pack sales, we’ve adjusted our assortment and space allocation to reflect how quickly the singles segment is growing in today’s alcohol beverage marketplace.”
The final word of advice offered by Theriault for c-store retailers looking to best navigate the current market in beverage alcohol was agility — making sure that new products were tested quickly and efficiently for shopper response, separating winners from losers in a crowded segment.
BrainTrust
Carlos Arámbula
Principal, Growth Genie Partners
Neil Saunders
Managing Director, GlobalData
Lisa Goller
B2B Content Strategist
Recent Discussions
Discussion Questions
Do you believe things going to get worse before they get better for beverage alcohol brands and associated retailers? Why or why not?
What potential disruptor can you see entering the market which could further pull sales downward? Are there any differentiators that could save certain brands or retailers?
Can you think of any standout brands or retailers in the segment which are weathering the downturn better than others? What’s their secret?
Poll
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Alcohol consumption is soft generally, but not across the board. Ready to drink cocktails are one of the segments seeing growth. Why? Because they’re a trade down from drinking out of home, because they’re a small indulgence that doesn’t break the bank, and because they’re convenient. That said, to cut through brands need to innovate and layer in things like novelty and a premium feel. The best example of doing this comes from Marks & Spencer with their fun cans and The Marksologist premium lines. They’ve seen huge growth.
And look at the shelf in the picture at the top of this article. An uninspiring mess! Compare that to the brilliant way M&S present their range.
That’s part of the problem. Display techniques in this area haven’t changed in decades, and a lot of the displays are a mess.
Exactly. There are wider trends that impact sales, but retailers (and brands) really do not help themselves!!
If history is any indication, things are probably going to get worse. And then we’ll figure out that “pot” (THC) isn’t all it’s “cracked” up to be (see what I did there). The temperance story is as old as alcohol: sober bars, near beer, soda fountains, herbal elixirs, mocktails.
We’ve been “here” before and I suspect that like a non-life-threatening hangover, this too shall pass! As often is the case, the pendulum will settle somewhere in the middle.
“Clowns to the left of me, jokers to the right, here I am stuck in the middle with you” enjoying a cornucopia of alcoholic, non-alcoholic and functional-buzz options.
Whatever you do, do it responsibly. Cheers!
This is less a temporary downturn than a structural shift.
Alcohol is no longer losing share primarily to other alcohol brands—it’s competing against consumers’ discretionary time, attention, and wellness priorities. Cannabis, functional beverages, premium non-alcoholic alternatives, and changing social habits are all reshaping demand. Retail execution still matters, but it won’t reverse a fundamental change in consumer behavior.
The next differentiator won’t be another ready-to-drink beverage or flavor innovation. It will come from brands and retailers that redefine alcohol’s role in consumers’ lives by owning occasions and creating experiences that fit today’s more intentional consumer.
I question the whole premise that “they get better” is the follow-up to “they’ll get worse.” Who’s to say they don’t just get worse…period?
(And yes, the industry is allowed the levity of saying they need a drink after hearing that …it’s a sobering thought.)
There’s renewed optimism for the beverage alcohol category due to product innovation and more fun social occasions.
Brands with low/no alcohol options or cannabis infusions align with major shifts in consumer tastes and regulations over the past decade. Premium single-serve drinks allow commitment-free sampling.
The desire to socialize in person to counter tech-driven isolation has led to a surge in demand for live sports and entertainment. Live events directly drive beverage alcohol discovery, inspiration and sales. Last year’s media coverage of the US Open featured the Honey Deuce cocktail while the Oasis tour coverage included concertgoers sipping Champagne Supernovas.
Agree with everyone here that consumer habits are changing. Also agree that merchandising in alcohol in many places is the dog’s breakfast. One thing not mentioned, what I’ve been calling the “war on alcohol,” at least in the US. The last few years the media has been flooded with very negative stories about drinking, the prevailing narrative out there is even one drink is too many. That message is reinforced with Dry January, lifestyle stories about living booze free, it goes on and on, and I have to believe that’s also influencing behaviors, especially in the critical 20-30 age group. This is when consumers tend to develop their “relationships” with products, including alcohol.
Valid Gary. What I see in a section of Gen Z is a genuine distain for the desire to consume alcohol. Some of it related to health concerns but mostly related to price/affordability. Many content creators for example are smart to know that posting a video of a healthy shake post workout is ‘better’ than drinking a pint. Although, there is a market for everything…!
Consumers today are far more intentional with their spending and their wellbeing. They’re not necessarily rejecting alcohol altogether, they’re looking for products and experiences that fit the occasion, whether that’s a premium cocktail, a low-alcohol option or something alcohol-free.
The brands that win will understand those occasions better than their competitors, rather than simply launching another flavour or format.
This is a big merchandising challenge. Too many alcohol aisles are still organised by category instead of by shopper mission. Imagine shopping solutions built around “Friday night in,” “summer BBQ,” or “dinner party,” complemented by premium mixers, snacks and alcohol-free alternatives.
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Alcohol consumption is soft generally, but not across the board. Ready to drink cocktails are one of the segments seeing growth. Why? Because they’re a trade down from drinking out of home, because they’re a small indulgence that doesn’t break the bank, and because they’re convenient. That said, to cut through brands need to innovate and layer in things like novelty and a premium feel. The best example of doing this comes from Marks & Spencer with their fun cans and The Marksologist premium lines. They’ve seen huge growth.
And look at the shelf in the picture at the top of this article. An uninspiring mess! Compare that to the brilliant way M&S present their range.
That’s part of the problem. Display techniques in this area haven’t changed in decades, and a lot of the displays are a mess.
Exactly. There are wider trends that impact sales, but retailers (and brands) really do not help themselves!!
If history is any indication, things are probably going to get worse. And then we’ll figure out that “pot” (THC) isn’t all it’s “cracked” up to be (see what I did there). The temperance story is as old as alcohol: sober bars, near beer, soda fountains, herbal elixirs, mocktails.
We’ve been “here” before and I suspect that like a non-life-threatening hangover, this too shall pass! As often is the case, the pendulum will settle somewhere in the middle.
“Clowns to the left of me, jokers to the right, here I am stuck in the middle with you” enjoying a cornucopia of alcoholic, non-alcoholic and functional-buzz options.
Whatever you do, do it responsibly. Cheers!
This is less a temporary downturn than a structural shift.
Alcohol is no longer losing share primarily to other alcohol brands—it’s competing against consumers’ discretionary time, attention, and wellness priorities. Cannabis, functional beverages, premium non-alcoholic alternatives, and changing social habits are all reshaping demand. Retail execution still matters, but it won’t reverse a fundamental change in consumer behavior.
The next differentiator won’t be another ready-to-drink beverage or flavor innovation. It will come from brands and retailers that redefine alcohol’s role in consumers’ lives by owning occasions and creating experiences that fit today’s more intentional consumer.
I question the whole premise that “they get better” is the follow-up to “they’ll get worse.” Who’s to say they don’t just get worse…period?
(And yes, the industry is allowed the levity of saying they need a drink after hearing that …it’s a sobering thought.)
There’s renewed optimism for the beverage alcohol category due to product innovation and more fun social occasions.
Brands with low/no alcohol options or cannabis infusions align with major shifts in consumer tastes and regulations over the past decade. Premium single-serve drinks allow commitment-free sampling.
The desire to socialize in person to counter tech-driven isolation has led to a surge in demand for live sports and entertainment. Live events directly drive beverage alcohol discovery, inspiration and sales. Last year’s media coverage of the US Open featured the Honey Deuce cocktail while the Oasis tour coverage included concertgoers sipping Champagne Supernovas.
Agree with everyone here that consumer habits are changing. Also agree that merchandising in alcohol in many places is the dog’s breakfast. One thing not mentioned, what I’ve been calling the “war on alcohol,” at least in the US. The last few years the media has been flooded with very negative stories about drinking, the prevailing narrative out there is even one drink is too many. That message is reinforced with Dry January, lifestyle stories about living booze free, it goes on and on, and I have to believe that’s also influencing behaviors, especially in the critical 20-30 age group. This is when consumers tend to develop their “relationships” with products, including alcohol.
Valid Gary. What I see in a section of Gen Z is a genuine distain for the desire to consume alcohol. Some of it related to health concerns but mostly related to price/affordability. Many content creators for example are smart to know that posting a video of a healthy shake post workout is ‘better’ than drinking a pint. Although, there is a market for everything…!
Consumers today are far more intentional with their spending and their wellbeing. They’re not necessarily rejecting alcohol altogether, they’re looking for products and experiences that fit the occasion, whether that’s a premium cocktail, a low-alcohol option or something alcohol-free.
The brands that win will understand those occasions better than their competitors, rather than simply launching another flavour or format.
This is a big merchandising challenge. Too many alcohol aisles are still organised by category instead of by shopper mission. Imagine shopping solutions built around “Friday night in,” “summer BBQ,” or “dinner party,” complemented by premium mixers, snacks and alcohol-free alternatives.