Are We Blaming the Wrong People for the Alcohol Industry’s Decline? The consumer changed. But maybe the alcohol industry helped change them.

There is no question the alcohol industry is going through a difficult period. Spirits, wine and beer sales are slowing, and everywhere I turn I hear another explanation: Gen Z doesn’t drink enough. Inflation. Tariffs. The economy. Health trends. Changing lifestyles.

 

There is truth in all of it. U.S. beverage alcohol volume declined 5% in 2025 according to IWSR, and consumers are clearly under economic pressure.

 

But as a retailer who watches thousands of real transactions happen in front of me, I keep coming back to another question: Are we blaming the consumer for a problem the alcohol industry helped create?

 

At RoCo, we’ve been fortunate. We’ve built an incredible community, our online business continues to grow, and great barrel picks and limited releases still move.

 

What’s changing dramatically is the everyday transaction.

 

Our average in-store transaction used to be around $45–$50. Then we started seeing it closer to $27. Recently, I looked at a small snapshot of our last 30 customers.

 

A large portion were buying BuzzBallz and other RTDs—ready-to-drink cocktails. I’m not anti-RTD. We sell a lot of them. They’re convenient, affordable, approachable, and they’ve gotten pretty good.

 

But what did that $10 transaction replace?

 

Years ago, someone making margaritas at home might buy tequila, margarita mix, limes, salt and maybe triple sec. That’s easily a $40–$60 basket. Today? Grab a four-pack for around $10 and you’re done.

We potentially turned a $50 basket into a $10 basket. That’s one-fifth of the revenue.

Multiply that behavior across millions of transactions, and I think we have something worth discussing.

The industry keeps talking about changing consumer behavior. But who spent years helping shape that behavior?

Alcohol companies invested enormous amounts of innovation and marketing into RTDs. More brands. More flavors. More shelf space. More advertising.

And it worked.

Spirits-based premixed cocktails reached approximately $3.8 billion in U.S. supplier sales in 2025, growing 16.4% in one year, according to the Distilled Spirits Council, while the broader spirits market declined.

That’s an incredible success story for RTDs.

 

But if a $10 purchase increasingly replaces a $40 or $50 traditional alcohol basket, we need to consider the long-term economics. We taught consumers that alcohol could be cheaper, easier and faster. Then we’re surprised when they choose cheaper, easier and faster.

 

I think this may be the bigger mistake. Alcohol has always been a relationship business. Salespeople visited accounts. Brand ambassadors educated bartenders. Retailers tasted with reps. Bartenders introduced customers to new spirits. People built brands with people.

Then efficiency became the priority. Territories grew. Sales teams shrank. Emails and ordering portals replaced conversations. Influencer campaigns replaced some traditional brand-building.

I understand some of it. Some field salespeople weren’t performing.

But if the talent isn’t performing, manage them better—don’t eliminate the function.

Track their activity. Require meaningful daily recaps. Know which accounts they visited, what they tasted, what objections they heard and what placements they earned. Put leadership in place that actually coaches.

There is a difference between cutting unnecessary expense and cutting the people responsible for creating future demand.

As a retailer, I used to get frustrated watching brands spend money on bartender education, trips, tastings and events. I thought, We’re the ones selling the bottles. Why aren’t you spending that money with us?

I’ve changed my mind.

One bottle on my shelf might be purchased by one customer. A bottle behind a great bar might be tasted by 25 people. A knowledgeable bartender can introduce hundreds of people to a brand over time.

Then someone walks into RoCo and says, “I had this whiskey at a restaurant. Do you carry it?” That’s pull-through.

And as RTDs move further into bars and entertainment venues, we should pay attention to what they replace. When a canned drink replaces a bartender-made cocktail, shot, beer or glass of wine, we may also lose an opportunity for discovery, education and brand building.

I’ll use Heaven Hill and Elijah Craig as an example because I genuinely love the company and the brand.

Heaven Hill has invested heavily in connecting Elijah Craig with golf. It makes sense. Bourbon and golf fit together, and golfers are valuable consumers.

But many traditional golf consumers already know Elijah Craig. They’ve bought Small Batch. They’ve bought Barrel Proof. They’re chasing the LTOs.

Now look at the WM Phoenix Open.

That’s golf too—but it’s also a huge cultural and entertainment experience attracting a broad audience, including younger legal-drinking-age golf fans. That’s an opportunity.

 

Those younger consumers are getting into golf, building careers and will have more disposable income over time. They could become the next generation of whiskey drinkers. Don’t just put a logo in front of them.

Maybe six months later they’re standing in a liquor store and Elijah Craig is the bottle they recognize because it was the first bourbon they actually enjoyed. That’s the difference between advertising to a whiskey drinker and creating one. And this isn’t really about Heaven Hill. It’s an example for the entire industry.

The 24-year-old we’re trying to reach might not have $70 to spend on a bottle. In this economy, younger consumers may have less disposable income. That’s okay. Maybe their first bottle is $25. Maybe it’s $30. Maybe their introduction happens through a cocktail.

That 24-year-old buying their first $25 whiskey could become the 34-year-old buying your $60 bottle and eventually the 44-year-old buying premium releases. That’s how you build a category. 

Instead of constantly asking how to get more money from existing whiskey drinkers, ask how we’re creating the next whiskey drinker.

I think it comes down to two things.

First, stop endlessly doubling down on RTDs at the expense of building core brands. I’m not saying kill RTDs. Consumers like them and they deserve their place. But we’ve already spent years building the category. Let it breathe.

Put more marketing dollars into creating whiskey drinkers, tequila drinkers, rum drinkers, wine drinkers and beer drinkers. Build consumers who can have a relationship with your brands for decades.

 

Bring back talented salespeople, ambassadors, tastings, education and relationships with bartenders and retailers. But bring accountability with them. Train them. Track them. Coach them.

Technology should make those people better at building brands. It shouldn’t replace them.

Gen Z, inflation, tariffs, health trends and changing drinking habits are real factors. I’m not dismissing any of them.

 

I’m simply saying the industry needs to look inward too.

If younger consumers aren’t drinking whiskey, what are we doing to make whiskey relevant to them?

If they’re choosing RTDs, where did we put our innovation and marketing dollars?

If people aren’t discovering brands, how many of the people responsible for that discovery did we remove?

That means we can change again.

Let’s get back to building brands and creating markets. Make whiskey, tequila, rum, wine and beer approachable. Let bartenders bartend. Let salespeople sell. Let ambassadors educate. Let retailers build communities. Let influencers create awareness.

Because the future of this industry isn’t selling the 201st bottle to someone who already owns 200.

Stop fighting over the same drinker.

 

— Ro Nayyar