Funny. I never thought of Tito’s, Smirnoff, Jim Beam or Jack Daniel’s as “entry-lvel spirits.” But Drizly does, and I suspect they know more than me.
In 2021 to date, 37% share of liquor purchases on Drizly fall within an entry-level price range ($10 to $30). While this is still quite significant, this is down slightly from 38% in 2020 and, more dramatically, 44% in 2019.
Liz Paquette, Drizly’s head of consumer insights, says this downward trend is “a result of premiumization, which has driven share shifts in the liquor category over the past few years.”
Therefore, it’s more important to not just have any entry-level spirits SKUs on retail shelves, but to have the right ones. “It remains essential for retailers to have the top-selling, entry-level SKUs in stock to attract new customers and build profitable baskets, both in-store and online,” explains Paquette.
To help retailers optimize their entry-level inventory, we took a look at the top-performing categories, SKUs, and age demographics for this price point and spoke with a pair of Drizly retailers about what they’ve found to be most successful.
Drizly’s Top-Selling Entry-Level Spirits Brands, 2021 to Date:
- Tito’s
- Smirnoff
- Svedka
- New Amsterdam
- Bacardi
- Espolòn
- Jim Beam
- Jack Daniel’s
- Jameson
- Fireball
Vodka Leads Entry-Level Sales
Vodka is the one spirits category that has seen share gains within the entry-level segment year-over-year. Entry-level vodka is up two percentage points in share. Both bourbon and American whiskey, on the other hand, have declined by one percentage point in share each.
These shifts can be attributed in part to premiumization trends in the spirits industry. In certain spirits subcategories, consumers are trading up for more premium offerings. “The vodka category has been less impacted by the premiumization trend than bourbon and tequila, which have seen share shift away from the entry-level price category,” explains Paquette.
“Consumers are losing slight interest in entry-level priced bourbons since the difference in quality is significant,” says Adam Rogers, North American research director at IWSR Drinks Market Analysis. “Craft brands, which generally hold a higher retail price, are also making consumers more accustomed to higher prices.”
Vodka’s share of the entry-level spirits category is also bolstered by flavored vodka, a growing subcategory where the majority of products fall into the entry-level price point. “This is being driven by younger legal-drinking-age consumers who are more familiar with flavor, due to the number of hard seltzer flavors in the market,” says Rogers. “It’s a natural transition which bodes well for the flavored vodka category.”
“The best-selling entry-level spirits on Drizly year over year have been stable and are made up predominantly of household names and national brands,” says Paquette. “Retailers can optimize their entry-level spirits without taking up too much shelf space by prioritizing top sellers.”
Drizly’s Top-Selling Entry Level Spirits SKUs, 2021 to Date
- Tito’s Handmade Vodka
- Smirnoff No. 21 Vodka
- SVEDKA Vodka
- Jameson Irish Whiskey
- Fireball Cinnamon Whisky
- Espolòn Tequila Blanco
- BACARDÍ Superior White Rum
- Jim Beam Bourbon Whiskey
- Captain Morgan Original Spiced Rum
- Absolut Vodka
Who’s Buying Entry-Level Spirits?
Drizly data shows that two generations are over-indexing on entry-level spirits share relative to the overall Drizly average: Gen Z and Baby Boomers.
“The lower price point may appeal to Gen Z, which is the youngest generation,” says Paquette. “Additionally, the household brands and nostalgia associated with the brands that lead the entry-level category appeal among Baby Boomers.”
Isaac says that entry-level spirits at his store are most popular with consumers between the ages of 21 and 30, while Wluka Switkes says it’s between 21 to 34.