On-Premise Liquor and Wine Sales: Winning Strategies

On-Premise Liquor and Wine Sales: More Common Sense Than Anything Else

 

“Winning on-premise accounts isn’t about secret tricks; it’s about identifying needs and meeting them with a great product. Success depends on having the right product, determination, clear communication, and consistent follow-up.”
— Kim Veiga, President of Felene Inc.

On-premise liquor and wine sales—such as restaurants, bars, and hotels—requires more than an exceptional product or a confident pitch. Success hinges on understanding the unique challenges faced by these businesses and tailoring your approach to meet their specific needs.

The Importance of Gaining On-Premise Client Accounts in Your Customer Mix

Securing on-premise accounts—such as restaurants, bars, and hotels—is vital for building a strong and diverse customer mix. These accounts provide benefits that go beyond revenue, influencing brand perception and creating lasting consumer connections.

Building Brand Visibility

On-premise accounts serve as high-visibility platforms for your products. Guests often discover new brands while enjoying cocktails at a bar or wine with dinner at a restaurant.

Examples:

• A vodka featured in a signature cocktail at a trendy rooftop bar can become a consumer favorite.
• A premium wine offered on a sommelier’s recommended pairing list elevates its status in the consumer’s eyes.

Driving Trial and Conversion

Restaurants and bars offer a low-risk environment for consumers to try new products. A positive first experience can lead to retail purchases later.

Example:

• A guest enjoying a well-crafted martini featuring your gin may look for your brand at their local liquor store.

Enhancing Credibility

Having your product featured on menus of well-regarded venues builds credibility and trust with both consumers and other potential clients.

Example:

• A hotel chain stocking your whiskey across its locations signals quality and broadens brand awareness.

Generating Consumer Buzz

On-premise accounts provide opportunities for experiential marketing, such as tastings or events, which amplify brand recognition.

Examples:

• Hosting a “Meet the Distiller” night at a popular bar creates direct consumer engagement.
• Sponsoring seasonal menu items featuring your product increases visibility and interest.

Balancing the Customer Mix

On-premise accounts complement off-premise retail sales by creating a full-spectrum presence. Consumers who first encounter your product at a bar are more likely to seek it out in stores.

Example:

• A bar patron asking for your tequila margarita could later purchase a bottle for home use, increasing retail sales.

By securing on-premise accounts, brands gain a competitive edge, foster loyalty, and create pathways to retail growth. Focusing on this channel ensures a balanced and robust customer mix that drives long-term success.

Comparative Analysis of Spirits Sales: On-Premise vs. Off-Premise (2019–2024)

2019: Pre-Pandemic Stability

• On-Premise Sales: On-premise venues, including bars and restaurants, contributed significantly to spirits sales, driven by social gatherings and dining culture.
• Off-Premise Sales: Off-premise sales were steady, supported by retail and home consumption trends.

2020: Pandemic-Induced Shift

• Impact of COVID-19:
  • On-premise sales declined drastically due to lockdowns and bar closures.
  • Off-premise sales surged as consumers shifted purchasing to retail stores during stay-at-home orders.
• Key Insights: Off-premise sales offset losses from the on-premise channel, showcasing a marked behavioral change.

2021: Gradual Recovery

• Economic Reopening:
  • On-premise sales began to recover but remained below pre-pandemic levels, with regional variations.
  • Off-premise sales remained strong, with many consumers continuing to buy spirits for home consumption.
• Market Observations: Dual-channel consumption emerged, as some consumers balanced on-premise and off-premise preferences.

2022: Stabilization and Premiumization

• Trends:
  • On-premise sales stabilized closer to pre-pandemic figures.
  • Off-premise sales maintained strength, with a shift toward premium spirits.
• Financials:
  • Retail dollar sales for off-premise spirits: $51.8 billion.
  • On-premise sales: $51.2 billion. (Source)
• Key Development: Premiumization drove growth, as consumers sought higher-quality products.

2023: Economic Pressures and Behavioral Adjustments

• Challenges:
  • On-premise sales struggled due to inflation and reduced discretionary spending.
  • Off-premise sales saw slight declines, influenced by overall market contraction.
• Market Data:
  • A 3% drop in spirits volume was reported, particularly affecting vodka and Scotch whisky. (Source)
• Notable Trends: Persistent economic challenges led to conservative consumer spending patterns.

2024: Current Landscape

• Dynamics:
  • On-premise sales are improving but have not reached 2019 levels.
  • Off-premise sales remain robust, reflecting sustained demand for retail purchases and home consumption.
• Premiumization: Higher-end spirits continue to outperform in both channels, despite economic pressures.

Key Takeaways

• Pandemic Impact: The pandemic permanently altered the balance between on-premise and off-premise sales, with off-premise channels gaining long-term prominence.
• Consumer Trends: Economic pressures and preferences for premium spirits influence both channels.
• Future Outlook: As economic conditions stabilize, a more balanced recovery across on-premise and off-premise channels is anticipated.

What On-Premise Liquor and Wine Sales Is Not About

Before diving into effective strategies, it’s essential to dispel common misconceptions about on-premise sales.

1. It’s Not All About Your Product

Even if your vodka boasts an innovative distillation process or your wine offers an award-winning flavor profile, that alone isn’t enough. Buyers prioritize inventory management, staff concerns, and customer satisfaction over production details.

For example:

• A restaurant focused on fast turnover may not consider your reserve whiskey, even if it has won awards.
• Bars serving a high volume of cocktails might prefer a versatile, cost-effective vodka over your premium organic option.

Products must fit seamlessly into their operations and clientele preferences.

2. It’s Not About You

Your passion, charisma, and expertise won’t close deals unless they align with the buyer’s goals. Many salespeople fall into the trap of focusing on their quotas instead of solving their customer’s problems.

For example:

• A buyer will not appreciate a lengthy pitch about your passion for small-batch spirits unless it includes how your product helps them attract new customers or increase margins.

What Selling On-Premise Might Be About

While the quality of your product and your industry knowledge are important, successful on-premise selling often hinges on additional factors:

Efficiency

Can your product streamline operations or reduce waste?

Example: Suggesting reusable stoppers for wine by-the-glass programs can reduce spoilage and save costs.

Exclusivity

Does your product offer something unique that enhances their brand identity?

Example: A limited-edition vodka flavor might align with a bar’s focus on specialty cocktails.

Support

Are you willing to provide training, marketing collateral, or sampling programs?

Example: Hosting a cocktail-mixing workshop for the staff can make your product stand out.

These elements spark interest but rarely close the deal on their own.

What Selling On-Premise Is Absolutely About

At its core, selling to on-premise accounts revolves around three universal goals:

1. Grow Revenue
2. Control Costs
3. Improve Guest Satisfaction

1. Grow Revenue

Restaurants and bars prioritize products that sell consistently and enhance their bottom line. Here’s how to deliver on this goal:

Focus on Sell-Through

Research consumer trends to recommend products that resonate with their clientele.

Examples:

• A rooftop bar might benefit from trendy low-ABV cocktails featuring your sparkling vodka.
• Farm-to-table restaurants might favor an organic, sustainably sourced spirit.

Increase Check Averages

Suggest premium options that boost revenue per sale.

Example: Recommending your aged rum as the foundation for a $20 signature cocktail.

Maximize Incidence

Feature your product prominently on menus to increase the likelihood of orders.

Example: Ensure your craft gin appears in a cocktail that’s highlighted as “Bartender’s Favorite.”

2. Control Costs

Cost control is more than just offering competitive pricing; it’s about operational efficiency.

Inventory Management

Recommend products with fast turnover to reduce overstocking and waste.

Example: Offering a rotating seasonal product to keep their offerings fresh and appealing without overstock.

Transparent Pricing

Always honor your quoted prices to build trust and maintain strong relationships.

Example: If you promise a discount for large orders, ensure it appears on the final invoice.

Minimize Waste

Offer guidance on portioning and preparation.

Example: Suggest using nitrogen dispensers to preserve opened bottles of wine in by-the-glass programs.

3. Improve Guest Satisfaction

Every product added to a menu must enhance the guest experience.

Storytelling

Highlight unique stories behind your product to create an emotional connection.

Example: Sharing the story of a family-owned distillery adds depth to a customer’s experience.

Surprise and Delight

Offer exclusive items to intrigue customers.

Example: A limited-edition craft vodka infused with seasonal botanicals can generate excitement.

Social Proof

Emphasize accolades and awards to boost credibility.

Example: Highlight your brand’s recent gold medal win in a Spirits Competition.

Shifting the Focus: From Sales to Service

The most successful on-premise salespeople don’t feel like vendors—they’re trusted partners. Here’s how to establish that trust:

Respect Their Time

Buyers manage multiple responsibilities. Be concise, prepared, and focused on solving their challenges.

Example: Present a tailored pitch addressing how your product solves a specific issue, like waste reduction or menu enhancement.

Be Dependable

Always deliver on promises, whether it’s timely product deliveries or staff training sessions.

Example: Follow through by providing branded glassware after offering it as part of a marketing support package.

Solve Problems

Position your product as a solution that helps their business grow, cut costs, or delight patrons.

Example: Offer a training program that teaches staff how to upsell premium cocktails featuring your spirits.

Practical Tips for Dominating the List

To secure a spot on the wine list, cocktail menu, or back bar, you need to move beyond transactional sales. Here are actionable strategies to stand out:

Be a Resource

Provide menu pairings, cocktail recipes, or staff training to make your product indispensable.

Example: Suggest pairing your organic vodka with fresh herbs for seasonal cocktails.

Leverage Data

Use market trends and success stories to demonstrate how your product can drive results.

Example: Show how offering a premium rosé boosted another restaurant’s seasonal sales by 15%.

Engage Guests

Propose collaborative marketing efforts to attract attention and drive sales.

Example: Organize a cocktail-tasting event featuring your spirits, co-branded with the venue.

The Bottom Line

Selling wine and spirits on-premise requires more than great products or a winning personality. By focusing on helping bars and restaurants grow revenue, control costs, and enhance guest satisfaction, you position yourself as a true partner.

When you prioritize their success, you don’t just earn a place on their list—you become a trusted ally in their business. That’s how you truly win the on-premise game.