US Wine Shoppers Prepare for Tariff-Driven Price Hikes and Thinning Selections This Holiday Season.
A perfect pairing for Thanksgiving is proving to be elusive this year as wine enthusiasts face a new challenge: the impact of tariffs on their beloved beverages. As importers grapple with steep tariffs, shopkeepers are bracing for higher prices and narrower selections in stores nationwide.
The latest data from the US government reveals that bottled wine prices have risen by nearly 20% over the past quarter-century, while the past decade has seen an 8% increase. Climate change, inflation, and rising production costs are contributing factors to this trend.
Wine merchants, including Daniel Mesznik, owner of McCabes Wine & Spirits in Manhattan, attribute price hikes to the tariffs imposed by President Trump's administration, particularly a 15% tariff on European Union imports. "It's the reality of the tariffs, shipping, manufacturing, and labor," Mesznik explained. His shop has found a delicate balance between absorbing these costs and keeping prices reasonable for customers.
The impact is felt more acutely among importers, who report a significant decline in wine sales. Elenteny Imports, which works with 9,000 retailers and restaurants, notes that wine sales are down 13% year-over-year. Wine volume consumed in the US has declined by 3% between 2019 and 2024, and this trend is expected to continue, with a further drop of 4% from 2024 to 2029.
A shift towards spirits and canned cocktails appears to be driving this decline. Marten Lodewijks, president of IWSR, an alcohol data insights firm, attributes the rise in ready-to-drink beverages, which are often less expensive than wine, as a key factor in this trend. "We've seen wine volumes consistently decline year after year, while ready-to-drink beverages, which are less expensive and offer convenient sizes and flavors, are growing rapidly," Lodewijks said.
The coming year looks similarly bleak for the US wine industry, with Elenteny's data indicating a nearly 30% drop in order volumes for imported wines to date. CEO Alexi Cashen attributes this decline to "post-pandemic frothiness" and stresses that tariffs are the primary cause of these woes.
Domestic wines, which were initially expected to benefit from the tariffs, have also seen declining sales. The impact is uneven, however, with mid-priced wines between $40 to $50 often struggling more than lower-end bottles and premium wines.
Some wine merchants are adapting by reordering strategically, purchasing larger quantities of popular brands or exploring new product lines. McCabes Wine & Spirits has shifted some focus to tequila, which is exempt from tariffs due to the 2018 free trade agreement between the US and Mexico. Mesznik noted that tequila sales have increased significantly since the shop reopened following a 16-month renovation.
However, with smaller shipments coming in from overseas, including significant declines from France and Italy, shoppers may soon face reduced selections on store shelves. Mike Veseth, the Wine Economist, warns that this shift towards streamlined wine offerings could lead to longer searches for specific brands, making it more challenging for customers to find their preferred wines.
The ongoing uncertainty surrounding tariffs also affects businesses' willingness to invest or adjust pricing strategies. The upcoming Supreme Court decision about the legality of these tariffs is expected to influence the industry's approach to prices.
A perfect pairing for Thanksgiving is proving to be elusive this year as wine enthusiasts face a new challenge: the impact of tariffs on their beloved beverages. As importers grapple with steep tariffs, shopkeepers are bracing for higher prices and narrower selections in stores nationwide.
The latest data from the US government reveals that bottled wine prices have risen by nearly 20% over the past quarter-century, while the past decade has seen an 8% increase. Climate change, inflation, and rising production costs are contributing factors to this trend.
Wine merchants, including Daniel Mesznik, owner of McCabes Wine & Spirits in Manhattan, attribute price hikes to the tariffs imposed by President Trump's administration, particularly a 15% tariff on European Union imports. "It's the reality of the tariffs, shipping, manufacturing, and labor," Mesznik explained. His shop has found a delicate balance between absorbing these costs and keeping prices reasonable for customers.
The impact is felt more acutely among importers, who report a significant decline in wine sales. Elenteny Imports, which works with 9,000 retailers and restaurants, notes that wine sales are down 13% year-over-year. Wine volume consumed in the US has declined by 3% between 2019 and 2024, and this trend is expected to continue, with a further drop of 4% from 2024 to 2029.
A shift towards spirits and canned cocktails appears to be driving this decline. Marten Lodewijks, president of IWSR, an alcohol data insights firm, attributes the rise in ready-to-drink beverages, which are often less expensive than wine, as a key factor in this trend. "We've seen wine volumes consistently decline year after year, while ready-to-drink beverages, which are less expensive and offer convenient sizes and flavors, are growing rapidly," Lodewijks said.
The coming year looks similarly bleak for the US wine industry, with Elenteny's data indicating a nearly 30% drop in order volumes for imported wines to date. CEO Alexi Cashen attributes this decline to "post-pandemic frothiness" and stresses that tariffs are the primary cause of these woes.
Domestic wines, which were initially expected to benefit from the tariffs, have also seen declining sales. The impact is uneven, however, with mid-priced wines between $40 to $50 often struggling more than lower-end bottles and premium wines.
Some wine merchants are adapting by reordering strategically, purchasing larger quantities of popular brands or exploring new product lines. McCabes Wine & Spirits has shifted some focus to tequila, which is exempt from tariffs due to the 2018 free trade agreement between the US and Mexico. Mesznik noted that tequila sales have increased significantly since the shop reopened following a 16-month renovation.
However, with smaller shipments coming in from overseas, including significant declines from France and Italy, shoppers may soon face reduced selections on store shelves. Mike Veseth, the Wine Economist, warns that this shift towards streamlined wine offerings could lead to longer searches for specific brands, making it more challenging for customers to find their preferred wines.
The ongoing uncertainty surrounding tariffs also affects businesses' willingness to invest or adjust pricing strategies. The upcoming Supreme Court decision about the legality of these tariffs is expected to influence the industry's approach to prices.
I'm low-key worried about the impact of those tariffs on our wine game this holiday season. It's crazy to think that 20% price hikes over the past quarter century are even a thing, and now we're facing another surge thanks to Trump's admin. I mean, who doesn't love a good glass of wine with their turkey? But seriously, it's no wonder wine sales are down 13% year-over-year...who can afford those steep prices anymore?
so the wine snobs are gonna have to shell out more cash for a glass of merlot, yay 
meanwhile, people can just grab a cheap vodka soda or something and be done with it... sounds like the US wine scene is really feeling the pinch of tariffs 
. Wine merchants are trying to adapt, but it's like trying to find a needle in a haystack when the imports just keep on dwindling 
. I mean, who needs wine when you can have a cold can of 'craft' beer for $5? 
. And I'm all for businesses adapting and finding new products to sell, but let's not forget about the wine lovers who just want their usual bottle of wine without the added stress of tariffs.
. Fingers crossed for a resolution that benefits everyone involved!
wine lovers in the US are in for a tough time. importers are feeling the heat with 15% tariff on EU imports and it's reflecting on customer wallets 
but honestly it's all about the consumer choices 
20% increase over the past quarter-century? That's crazy! And with climate change and inflation adding to the mix, I'm surprised anyone can afford to drink wine at all... or is it just the rich folks who are immune to these price hikes? 
. It's just so frustrating when you love something, but it becomes out of reach due to external factors.
, but now i'm worried they're gonna raise prices again like 20% is crazy what's going on with the tariffs btw are they still gonna affect us even if trump isn't in office anymore?
. The impact on smaller, imported wines can't be overstated - it's like a perfect pairing just got harder to find 
. But at the end of the day, consumers are the ones who suffer, having to search way longer for that special bottle 
.
. I mean, we're already sipping on those fancy wines, and now they're gonna be pricier? But you know what? This might just push people to try some new, exciting spirits or canned cocktails... 
Plus, who knows? Maybe this will encourage some wine merchants to get creative with their product lines and offer more unique options. After all, change can be a good thing, even if it means we have to look harder for our fave wines 
.
. Wine shoppers are facing a perfect storm of price hikes and reduced selections, all thanks to a 15% tariff on EU imports. It's not just about the tariffs, though – inflation, climate change, and rising production costs are also contributing factors. 
As wine merchants try to adapt, they're finding it hard to balance absorbing costs with keeping prices reasonable for customers. The impact is felt most acutely among importers, who report a significant decline in wine sales... but what's the "root of all evil" here? Is it tariffs, or just market trends? 
And now they're saying it's all because of tariffs? Like, come on, folks 
. It's not just the US, other countries are feeling this too 
I mean, it's like the whole wine industry is being strangled by these tariffs 
And don't even get me started on the spirits and canned cocktails trend 
. That's like a wolf in sheep's clothing, you know? 
Something fishy is going on here, mark my words... 
. The 20% rise in bottled wine prices over the past quarter-century is already a challenge, but with climate change, inflation, and production costs all playing a role, it's not like we didn't see this coming 
.
.
... but honestly, have you tried some of that tequila lately? That stuff is fire 
!
. But at the same time, I don't wanna see those mid-range wines go extinct 
... that's where all the good stuff lives.
.
I'm really worried about our wine selection this holiday season. Tariffs are making it so expensive and hard to find what we want 