Beer, Wine, and Liquor Stores NAICS 445320

Jun 8, 2025 - Beer Drinkers Balk at High Prices

• Beer doesn’t enjoy the same price elasticity as some other alcoholic beverages like vintage wines or top-shelf whiskies, with beer drinkers balking at rising prices, The Wall Street Journal reports. Breweries and retailers must keep a lid on costs and prices and innovate to justify price hikes. “Beer is [still] considered a commodity,” said Justin Catalana, CEO of San Francisco’s Fort Point Beer Co., adding “People talk about a six-pack’s cost the same way they do a carton of eggs.” But that wasn’t always the case. As craft breweries began to transform the industry, consumers gladly paid more for hazy IPAs and other novel brews. But as they proliferated the market became crowded and craft beers became grocery store staples, according to WSJ. Now, amid slumping sales, beer must compete with increasingly popular nonalcoholic beverages, cannabis, and canned cocktails.
• Consumers’ thirst for alternatives to alcoholic beverages and the loosening of laws in various states around recreational marijuana use is driving growth in the market for THC-infused seltzers, Forbes reports. Sales in the US are expected to reach $1.4 billion in 2025, according to BDS Analytics and Arcview Market Research. THC seltzers (aka cannabis seltzers) are made by infusing THC – tetrahydrocannabinol, the main psychoactive component of marijuana – into carbonated drinks, creating a new subcategory of seltzers and a different way to consume cannabis. THC-seltzers and cannabis canned cocktails come in a wide range of potencies and are sold in grocery and liquor stores in most states, presenting retailers with a novel and fast-growing product category to compensate for falling beer and wine sales. Popular brands include WYNK, Fable, CANN, and Happy Flower, according to Forbes.

• Wine drinkers are trading down, Wine-Searcher reported in May citing data from SipSource that shows revenue fell faster than volume in the first three months of 2025. While both were down about 10% compared to the first three months of 2024, revenue declined 0.6% more than volume, according to SipSource, a tracker of distributor depletion data. SipSource analyst Dale Stratton says that white wines, which are generally less expensive, are outperforming reds, while high-end wines are selling at a discount. Stratton notes that for wines priced at $50 and up, volume sales rose 3.3% from December to March, but the revenue they generated fell 5.4%. Also, sparkling wines priced over $20 are struggling, with the exception of Prosecco.
• Employment by beer, wine and liquor stores shrank 1% in March compared to a year ago, while average industry wages rose 12.4% over the same period to a new high of $19.74 per hour, according to the latest US Bureau of Labor Statistics data. Retail sales grew 3% year over year in January supported by sustained consumer spending, but plunged 35.6% from December on a tough comparison. Beer, wine and liquor store sales are highest in the fourth quarter, peaking in December. The arrival of Dry January also caused sales of beer, wine and spirits to sink.