THE distilled drink industry It crosses a period of major challenges, with uncertainties that affect producers, importers, distributors and owners of bars and restaurants.
Concerns include the possible obligation of warnings on alcohol labels, as is the case in several countries in Europe, the threat of commercial tariffs driven by conflicts involving the United States and other nations, the excess of supply of whiskeys and tequilas, as well as the fall in sales. These factors create a complex scenario, with still uncertain duration.
Overcoming these adversities is like crossing a minefield, where each step can be riskier than the previous one. Uncertainty has difficult to make decision making in the sector, with bars managers need to make adjustments to avoid damage without guarantee that these measures will be sufficient, and facing the risk of removing the clientele due to the necessary transfer in prices.
After challenging years, with a 1.1% drop in the value of US distillate sales in 2024, according to the distilled Spirits Council, success parameters have changed. Rather, it was spoken of growth goals; Now the focus is to survive even with reduced profit margins, while trying to predict the direction of the market.
Despite the adverse scenario, the answers vary between proactive strategies and resilience with many seeing opportunities in the midst of difficulties.
Changes in consumer habits
The drop in distillate sales, except for drinking ready for consumption (RTDs), has multiple causes . The increase in the use of recreational cannabis in countries where their consumption is legal, the use of weight loss medicines, such as Ozepic, Wegovy and Mounjaro (which decreases the desire for alcohol), and the growing interest in moderation, motivated by a healthier lifestyle are factors often cited.
Bars and restaurant operators highlight, however, a generational change in consumption . Many bars owners report a reduction in alcohol use, which has led to the adoption of strategies such as the creation of lower alcohol cocktail and the development of parallel menus with alcohol -free options that gain more and more space.
“I don’t believe that extremist speeches define the future, but they point to a path we need to follow,” comments a manager of the sector.
Creative solutions, such as the use of cocktail wines to reduce alcohol content without compromising the complexity or elaboration of menus with local and handcrafted products, have been promising.
The threat of tariffs
Another major challenge is commercial tariffs. Since February 1, 25% rates on imports of Mexico and Canada and 10% of Chinese products have been announced, suspended and adjusted, generating market instability.
In addition, the European Union has planned to impose tariffs up to 50% on American whiskeys from April 1, while the Trump government threatened to retaliate with 200% tariffs on European wines and spirits.
Faced with a scenario that combines the decrease in alcohol consumption with increased costs, there is a significant opportunity for transformation and innovation. Creativity can be the key to overcoming these challenges opening a huge window for the development of new business models and strategies that meet the demands of a constantly evolving audience.
*The texts published by the insiders and columnists do not necessarily reflect the opinion of CNN Viagem & Gastronomy.
Who is Thiago Bañares
Bañares, graduated in gastronomy from FMU (SP), was considered by the ranking “Bar World 100 ”, Organized by the important publication Drinks International, one of the 100 most influential people in the global bars industry. Your restaurant/bar Tan Tan Figure – for the third time in a row – on the list of the best bars in the world in“The World’s 50 Best Bars ”He runs the also award -winning Kotori, considered the 50th best restaurant in Latin America for“Latin America’s 50 Best Restaurants ”; And he is ahead of the intimate The Liquor Store, a house that privileges the connection between client and bartender and delivers cocktails prepared with excellence.
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Source: CNN Brasil
Johanna Foster is an expert opinion writer with over 7 years of experience. She has a reputation for delivering insightful and thought-provoking articles on a variety of subjects. Her work can be found on some of the top online news websites, and she is currently lending her voice to the world stock market.
