How Beverage Wholesalers Can Tap Into Data and New Revenue Streams

The wine and spirits industry has recently faced new challenges, driven by trends like "Dry January," "Sober October," and the broader "sober curious" movement. Gen Z, in particular, is embracing these health-conscious shifts, leading to a notable decline in alcohol consumption. While this poses challenges, it also presents wholesalers and producers with an opportunity to rethink their strategies to do more with less—focusing on brand building and identifying new revenue streams.

Capitalize on Health-Conscious Trends

This generational movement toward reduced alcohol consumption reflects broader cultural changes focused on well-being and moderation. Gen Z increasingly favors health-conscious choices, with nearly 61% planning to reduce alcohol consumption throughout 2024, a 53% increase from the previous year. Non-alcoholic alternatives like mocktails and THC and CBD-infused beverages are emerging as promising areas for growth. 34% of Gen Zers show a willingness to try new beverage products aligned with sober curious messaging.

The rise of the "sober curious" trend is more than just a passing phase—it's reshaping the alcohol industry and impacting revenue streams on a macro scale. As younger generations refine their drinking preferences, shifting to spirits like bourbon, opting out of alcohol entirely or looking for low-alc alternatives, distributors find themselves at a crucial intersection of consumer behavior and industry dynamics.

Alcohol producers often have a limited view of the market, seeing only their own sales and missing out on broader consumer trends. Distributors, however, are uniquely positioned to understand and capitalize on these shifts because they have access to granular data across multiple suppliers and retailers. This privileged position allows them to act as connectors and disruptors, bridging gaps between suppliers and consumers while helping restaurants and liquor stores navigate changing demands.

Unlock the Power of Data to Fuel Revenue Growth

For distributors, the wealth of data they hold isn’t just an asset—it’s a new opportunity for growth. By leveraging their commerce platforms and insights, they can unlock additional revenue streams, offer strategic guidance to suppliers, and provide more value to their retail partners. For example, if a distributor notices a dip in tequila orders but a spike in lime purchases, they can anticipate a rise in demand for mocktails and help retailers adjust their inventory accordingly.

This ability to track trends and predict market movements not only enhances distributors’ status as strategic partners but also opens new monetization opportunities. By utilizing data similarly to how retailers monetize their media platforms, distributors can position themselves at the forefront of industry trends, driving growth and innovation. They have the power to transform raw data into actionable insights, making them a vital engine for industry evolution and a best-in-class partner for everyone involved.

Wholesalers who tap into their vast stores of consumer data can build connected networks that drive better decision-making and build stronger customer relationships. Enhancing existing data systems can unlock critical insights into consumer behavior, enabling wholesalers to innovate, anticipate demand shifts, and provide personalized services.

This approach boosts revenue by expanding services and creating new business models—such as leveraging the growing retail media network opportunity.

Create Retail Media Networks

One of the most exciting growth opportunities available to wholesalers lies in the burgeoning world of retail media networks. By 2024, U.S. digital retail media ad spend is projected to exceed $60 billion, and by 2027, it’s expected to surpass $100 billion. Wholesalers are uniquely positioned to tap into this market by transforming their existing advertising infrastructure into powerful retail media networks, thereby diversifying their revenue streams.

Many brands are already buying media through existing retail media networks, collaborating with platforms such as Uber, Instacart, Walmart, Kroger, and Albertsons. The shift toward in-house or partnership-driven media networks allows beverage distributors to monetize their own first-party data more effectively, reaching the right consumers at the right time with personalized marketing efforts.

Key Strategies for Wholesalers:

1. Leverage Existing Customer Data: Wholesalers already possess valuable data on consumer purchasing behaviors and preferences. By analyzing and organizing this data, they can craft targeted marketing campaigns and improve relationships with both suppliers (restaurants and liquor store owners) and consumers. Not to mention the support it provides sales teams.
2. Drive Personalized Engagement: Connected data networks can enhance wholesalers' relationships with liquor stores and restaurants by enabling personalized product recommendations and tailored services. This approach allows wholesalers to help their partners meet evolving consumer preferences, such as the rising demand for non-alcoholic and healthier beverage options, ultimately boosting customer loyalty and sales.
3. Build a Retail Media Network: Moving beyond traditional ad monetization strategies, wholesalers can establish retail media networks that use first-party data to generate revenue and scale advertising efforts.
4. Collaborate with Existing Retail Media Networks: Partnering with well-established retail media platforms like Uber, Instacart, and major retailers can help wholesalers reach new customers and offer suppliers new ways to promote their products directly to end consumers.

Build Brand Resilience through Diversification

The rise of health-conscious consumption trends doesn’t spell the end for the wine and spirits industry - it calls for adaptability. Distributors are no longer just moving products—they're moving insights. By tapping into their vast data resources, they can anticipate shifts in consumer behavior, whether it's a response to "Dry January" or emerging product trends. It’s not just about knowing what’s happening, but understanding why it’s happening, and using that knowledge to uncover new revenue streams and stay ahead of the curve.

This approach positions wholesalers as industry leaders, offering products that meet the demands of all consumers, from those seeking indulgence to those prioritizing wellness.

Tap Into the Data and Insights to Understand the Trends, Drive the Market and Thrive

With health-conscious consumers shifting their habits, the beverage industry is evolving fast. Wholesale beverage distributors are at a pivotal moment and have the chance to lead the way by creating data-driven strategies that help their customers engage both sober-curious and traditional consumers.

A consumer trend is something you need to be ready for, and wholesalers are in a prime position to help the industry stay ahead of the curve. They don’t just track calendar-driven marketing shifts like “Dry January”—they understand the deeper consumer mindset changes that drive demand for everything from non-alcoholic beverages to premium spirits. This wealth of data makes wholesalers invaluable partners, connecting suppliers with the insights they need and helping retailers navigate shifting consumer preferences.

As true industry disruptors, wholesalers are the bridge between suppliers and liquor stores or restaurants, bringing clarity to what's important and steering everyone in the right direction. Now’s the time to embrace this role, leverage your data, and continue being at the forefront of trends. With this strategic advantage, wholesalers can not only keep up—they can set the pace, shaping the future of the beverage industry.