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6/11/2026

Checking in with NABCA's Advisory Committee.

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Stateways

​Control states and their supplier partners face a variety of challenges every year. This includes the need to invest, adapt and innovate in real time, in order to advance the future values of those agencies and corporations.

This remained a challenging task in 2025, as shifting consumer tastes and a tricky global economy continue to drag on the alcohol industry. For a look at how everybody involved in the industry approached this difficult, multifaceted task, we checked in with the NABCA Industry Advisory Committee.

Throughout the year, the NABCA Board of Directors meets with the advisory committee - a group of beverage alcohol supplier executives - to address new and ongoing issues facing the control state system. StateWays annually invites these committee members to share their accomplishments, challenges and initiatives from the past year.

The theme for NABCA Chair Kathie Durbin's has been: "Connect, Respect, Elevate." We suggested that committee members speak about how they have worked to achieve that goal.

Brooke Rodriguez

BACARDI USA

Vice President, Control State Affairs

CONNECT, RESPECT, ELEVATE: HOW BACARDI BRINGS THE THEME TO LIFE THROUGH EXPERIENCES

This past year, Bacardi delivered on the theme Connect, Respect, Elevate through programs that extended far beyond the bar and across the U.S. By using our iconic portfolio as a gateway into music, travel, culture and sports, we launched immersive consumer experiences, strengthened on-premise partnerships, and elevated cocktail culture into a full-spectrum lifestyle. Each initiative was designed to connect authentically with consumers, strengthen and respect the trusted relationships we share with our customers and partners, and elevate experiences through flawless execution and shared purpose.

As highlighted in the 2026 Bacardi Cocktail Trends Report, cocktail culture is evolving rapidly. Gen Z and Millennials are reshaping cocktail culture, driving demand for drinks that double as shareable, lifestyle experiences; as shown by 57% of Gen Z respondents who believe in-person experiences are worth the effort. These insights reinforce what Bacardi has long believed: connection fuels loyalty, and experiences drive relevance.

A standout example is Hacienda Patron at last year's Dreamville Festival in North Carolina, which was designed to feel authentic, energetic and deeply rooted in music culture. The two-story Hacienda Patron activation delivered a premium yet inclusive experience, featuring local vinyl DJs, the Patron Headliner Margarita served in collectible cups, and daily happy hours. The results spoke for themselves: Patron was the #1 spirit sold onsite, driving year-over-year growth in sales and generating more than three million impressions.

Dewar's brought the same commitment to premium, purpose-driven experiences to the U.S. Open Golf Championship in Pennsylvania. As the Official Scotch Whisky of the tournament, Dewar's engaged consumers through branded bars and hospitality spaces throughout the grounds, inviting fans to pause, socialize and savor the moment with the Dewar's Lemon Wedge, the championship's official cocktail. To further elevate the experience, Dewar's complemented its onsite presence with the annual release of Dewar's 19 Year Old "The Champions Edition," a limited edition, collectible whisky honoring the host course, local heritage, and the rituals of golf.

As a family-owned company ater seven generations, respect for customers, partners and people has been foundational to the legacy of Bacardi. That commitment was most recently recognized for the sixth consecutive year when Bacardi USA was named "Best Large Spirits Supplier" at the 2026 VIBE Conference, an award determined exclusively by national account operators. This recognition reflects not only the strength of our portfolio, but also the trust we've built through service excellence, consistency and collaboration.

Whether through music festivals, lifestyle popups or industry-leading partnerships, Bacardi continues to connect authentically, respect deeply and elevate experiences with excellence. As cocktail culture becomes increasingly experiential and expressive, Bacardi is proud to lead - not just by what's poured in the glass, but by the meaningful moments created around it.

Raj Kandyil

PERNOD RICARD USA

Division Vice President, Control States

CREATEURS DE CONVIVIALITE: CONNECT, RESPECT, ELEVATE

At a time when our industry is navigating unprecedented change, including shifting consumer expectations, economic pressure and increasing complexity, one thing has never felt more essential: human connection.

The alcohol beverage industry has always been about more than products on shelves. At its best, it's about bringing people together around a table, a celebration, a shared moment. That belief sits at the heart of Pernod Ricard's purpose: Createurs de convivialite, creators of conviviality. It's a simple idea, but a powerful one, that fostering genuine moments of connection is both a human need and a business imperative.

CONNECT

In today's environment, connection doesn't happen by accident. It requires intention. Listening carefully to consumers, collaborating closely with partners and showing up authentically in the communities we serve. Nowhere is this more evident than in control states, where success depends on trust, transparency and long-standing relationships.

Our brands carry stories, heritage and craftsmanship that come to life only when they are shared. Whether we're working alongside control boards, educating retail teams or engaging responsibly with consumers, connection is what transforms a transaction into a relationship. Those moments are what allow our industry to remain relevant and resilient.

RESPECT

Respect starts with people. Inside Pernod Ricard, it shapes how we collaborate, how we lead and how we create space for different perspectives. Externally, it guides how we partner with customers, suppliers, farmers, and communities.

An inclusive culture is not a "nice to have"; it is foundational to better decision-making and stronger outcomes. When people feel valued, heard and safe, they do their best work. Especially in times of pressure, respect becomes a stabilizing force; one that strengthens teams and reinforces trust across the system.

In control states, where policy, public responsibility and commercial objectives intersect, respect is essential. It allows us to navigate complexity thoughtfully while staying grounded in shared goals.

ELEVATE

As an industry, we also have a responsibility to elevate our standards, our impact and our stewardship of the future. Pernod Ricard's sustainability and responsibility strategy, Good Times from a Good Place, reflects a belief that long-term growth and positive impact are inseparable.

From sustainable sourcing and regenerative agriculture to responsible hosting and circular production, our ambition is to create convivial moments that are sustainable for people and planet alike. We are committed to caring for the land, protecting water resources, reducing our carbon footprint and promoting responsible consumption. These efforts are not separate from our business strategy, they are central to it.

LOOKING AHEAD

What gives me the greatest confidence in the future of our industry is our people. Their dedication, creativity and willingness to go the extra mile, year ater year, are what allow us to meet evolving consumer needs while staying true to our values.

As I reflect on my time at Pernod Ricard USA, I'm continually inspired by the belief that better connections lead to better outcomes for our partners, our communities and our business. In an industry built on shared moments, human connection isn't just important. It's everything.

Sean Noble

CAMPARI

General Sales Manager Control States

CONNECT, RESPECT, ELEVATE: WHY IRL MOMENTS MATTER MORE THAN EVER

In a world increasingly shaped by screens, notifications and digital conversations, the way we gather and unwind has evolved. Happy hours often happen over group texts. Celebrations are announced in stories and posts. While technology keeps us constantly connected, it can also leave us craving something more personal - more present. That's why NABCA Chairwoman Kathie Durbin's guiding principle - "Connect, Respect, Elevate" - feels especially relevant today.

Her message calls on the beverage alcohol industry to foster meaningful relationships, operate responsibly and elevate standards across communities. It's a philosophy that aligns seamlessly with Campari America's global call to reconnect in real life (IRL) - to step away from the scroll and gather around shared experiences, culture and exceptional cocktails.

Connect. True connection goes beyond likes and comments. It's found in the simple act of clinking glasses at a neighborhood bar, sharing a toast at sunset or sitting across a table from friends. These moments carry a warmth that no video call can replicate.

Campari America's portfolio offers countless invitations to reconnect in person. The vibrant orange glow of an Aperol Spritz, served over ice with prosecco and a splash of soda, signals more than refreshment - it signals a pause. A moment outdoors. A shared laugh. A toast that lingers longer than a notification ever could. In a world that moves quickly and digitally, the Spritz encourages us to slow down and savor.

Respect. Durbin's call to respect underscores responsibility to consumers, to communities and to one another. Respect today includes drinking responsibly, supporting local hospitality professionals and honoring the spaces that bring people together.

A cocktail like the Espolon Paloma, bright with tequila, fresh grapefruit and lime, embodies celebration with intention. It's about quality over quantity. Craft over excess. Sharing a thoughtfully made drink in good company is a nod to the bartenders, servers and producers who elevate the experience. Respect also means recognizing that the moments we create together should be safe, inclusive, and welcoming for all.

Elevate. To elevate is to raise expectations and enrich everyday experiences. It might mean choosing to meet face-to-face instead of sending another message. It might mean hosting a small gathering rather than multitasking during a conversation.

The Wild Turkey Bold Fashion, a modern take on the Old Fashioned, features a robust bourbon character and balance, speaking to that elevated moment. It's a drink meant to be savored slowly, in conversation - not rushed between distractions. It invites storytelling. Reflection. Presence.

Hospitality spaces - restaurants, bars, backyard patios, community events - serve as the backdrop for many of life's most meaningful interactions. Reconnecting IRL is more than a trend; it's a reminder that shared experiences build stronger communities.

Durbin's "Connect, Respect, Elevate" reminds us that the beverage alcohol industry has the opportunity - and responsibility - to foster these meaningful experiences. Campari America's global invitation to reconnect around great cocktails reinforces that mission.

As digital noise continues to compete for our attention, perhaps the real luxury is simple: stepping away from screens, gathering intentionally and raising a glass together. Because connection isn't just about being online - it's about being present.

Nick Bock

SUNTORY GLOBAL SPIRITS

General Manager, Control States Region

CONNECT. RESPECT. ELEVATE.

At Suntory Global Spirits, "Connect. Respect. Elevate." is more than a theme - it is a way of working that shapes how we grow, innovate and contribute to the world around us. As a Suntorian of more than 17 years, I have seen firsthand how deeply this philosophy is embedded across our teams, our brands and our global footprint. It reflects our commitment to building meaningful connections, honoring the environments and cultures that sustain us and continuously elevating our craft to create exceptional experiences.

Our purpose - to inspire the brilliance of life, by creating rich experiences for people, in harmony with nature - comes to life through this lens. It connects over 40,000 Suntorians worldwide through our shared values of Growing for Good, Yatte Minahare and Giving Back to Society. These values guide our ambition to become the World's Most Admired Premium Spirits Company, ensuring that growth is not only measured in business performance, but in positive impact.

To connect is to collaborate across boundaries - between teams, industries and communities. Our partnership with Bosland Growth is a powerful example. Through a 20-year commitment to reforest 400 acres of previously mined land in Pennsylvania and West Virginia, we are building connections that extend far beyond our organization. By working alongside landowners, nurseries, universities, government agencies and non-profits, we are helping to restore ecosystems while supporting local economies. These efforts also reinforce the sustainability of our own value chain, as native hardwoods like white oak are essential to crating the barrels that age our world-class whiskies. Connection, in this sense, is both ecological and human - linking people, resources and purpose for generations to come.

To respect is to honor both nature and heritage. Across our global portfolio, this is evident in how we preserve natural resources and celebrate cultural identity. In Mexico, the "Made in Mexico" certification awarded to our Sauza Tequila portfolio underscores our respect for origin, craftsmanship and history. Our brands like Sauza, Hornitos and Tres Generaciones represent more than products - they embody over 150 years of tequila-making tradition.

By recognizing the cultural and industrial value of these spirits, we reinforce our commitment to the communities and traditions that define them. Respect also extends to the environment. From restoring peatlands in Scotland for Laphroaig to protecting water resources and reducing emissions, we ensure our operations remain in harmony with the natural systems that make our products possible.

To elevate is to continuously push boundaries - of innovation, sustainability and storytelling. Over the past year, initiatives like Star Hill Farm Whisky have brought regenerative agriculture and nature-led cratsmanship to the forefront, earning global recognition. At the same time, we have achieved measurable progress across our sustainability goals: stewarding tens of thousands of acres with regenerative practices, planting our one millionth tree, reducing water usage ahead of schedule and cutting emissions significantly since 2019. These achievements are not isolated wins - they elevate our brands, strengthen consumer trust and position us competitively in a market where purpose and performance go hand in hand.

Ultimately, "Connect. Respect. Elevate." reflects how we build resilient brands and a resilient business. By connecting with partners and communities, respecting the environments and cultures that shape our products and elevating our standards every day, we are creating lasting value - for consumers, for society and for future generations. As we carry this momentum through 2026, we remain committed to better land, more flavorful spirits, and brands that people around the world truly admire.

Reed Davis

LUXCO

Business Unit Manager - Control States

"CONNECT, RESPECT, ELEVATE"

As a proud NABCA member, NABCA Chair Kathie Durbin's theme Connect, Respect, Elevate reflects our focus as we work with our control state partners to successfully navigate the industry and meet the needs and expectations of adult consumers. We're grateful for the ongoing partnership, as Luxco continues to invest in sales and marketing initiatives in control states at a rate equal to or greater than our peers. By working together we've been able to drive brand awareness and sales of Luxco products, and deliver more dollars back to control states. We're pleased to highlight several of these successful programs and the new Luxco leadership team whose support and direction make these efforts possible.

Connecting with adult consumers across control states has been evident through Rebel Bourbon's ongoing partnership with Richard Childress Racing (RCR). As the official bourbon of RCR and a multi-race primary sponsor of Kyle Busch and the No. 8 team in the NASCAR Cup Series, Rebel continues to build upon a successful program that celebrates bold originality and a rebellious spirit.

In 2025, Rebel Bourbon brought the Rebel show car to racing markets and hosted bottle signings with Busch, including a signing event at the Virginia ABCHeadquarters, where he greeted more than 400 fans and signed over 250 bottles of Rebel Bourbon. In addition, the brand team provided bold and timely product displays at key ABC locations and held various branded at-track activations. Rebel's momentum continues throughout the 2026 NASCAR Cup Series season, with the annual launch of Rebel Bourbon Kyle Busch 108, engaging product displays featuring Rebel-branded racing video games and show car visits and bottle signings in Michigan and other markets.

The success of Rebel's RCR sponsorship, product offerings and activations is one of the reasons why Luxco was able to grow share on dollars in 2025. Another reason is the sheer success of Penelope Bourbon.

Elevating our award-winning Penelope Bourbon brand remains a priority. Sought ater and consistently ranked as a top bourbon brand, Penelope leans into consumer demand and preferences by crafting and promoting a host of limited offerings in addition to its popular Core Series which includes Wheated, Four Grain, Barrel Strength, Architect and Toasted Bourbon.

In 2025 Penelope entered the booming ready-to-pour market with the launch of its first-ever bottled cocktail: Penelope Peach Old Fashioned. Penelope's ready-to-pour portfolio quickly expanded with its release of Black Walnut Old Fashioned and Apple Cinnamon Old Fashioned. These premium, handcrafted cocktails offer the perfect balance of convenience and quality while delivering a fresh take on a timeless classic - and they've quickly become a consumer favorite and sales driver. Our Yellowstone Bourbon brand found similar success with the 2025 debut of its ready-to-serve Yellowstone Cocktails: Gold Rush, Old Fashioned and Espresso.

Our innovative work within the spirits industry and our vision for future success is set and supported by the Luxco leadership team. In 2025, two key changes were made to this team. Julie Francis was appointed President and CEO, and Matias Bentel joined as Chief Marketing Officer. Both Julie and Matias bring decades of experience in the food, beverage and alcohol industries, along with the proven ability to build and grow brands. These leaders understand market challenges, respect the needs of control states and remain committed to working with control-state partners to help grow their business.

As we continue to move forward together, we value the level playing field and trusted data Control States offer - and we look forward to sharing best practices in our role on the NABCA Industry Advisory Committee to help further NAB-CA's goals.

Jacob Sabel

HEAVEN HILL BRANDS

Vice President - Strategic Partnerships

FORWARD TOGETHER: BUILDING CONNECTION, ELEVATING THE CATEGORY, AND RESPECTING WHAT ENDURES

As we look ahead to another year of collaboration within the National Alcohol Beverage Control Association, I want to begin with gratitude. Kathie Durbin's leadership has helped guide the Control State system through a dynamic period, and I'm pleased to welcome Chris Graham as incoming Chairman. His perspective and experience come at an important moment for our industry.

Because if there's one thing that feels clear right now, it's this: we are not standing still. We are recalibrating, reconnecting and in many ways, rediscovering what has always made this industry work.

At Heaven Hill, we see the Control State system as a critical partner in that work. As the largest, independent family-owned and -led distilled spirits company of brands in the United States, our focus remains on building long-term relationships that create shared value, not just short-term wins.

A YEAR FOCUSED ON CONNECTION

If the last few years were about acceleration, this moment is about reconnection.

Across the industry, we are seeing a renewed focus on socialization and experience. Consumers are still seeking out spirits, but increasingly in moments that feel meaningful. That might look like a distillery visit, a cocktail program that surprises them or simply gathering with friends in a way that feels intentional.

For us, that shows up in how we invest behind experiences like the Heaven Hill Bourbon Experience and the continued evolution of our distilleries, including Heaven Hill Springs. These are not just brand homes. They are places where consumers reconnect with the category itself.

It also shows up in how we meet consumers where they are. Whether through partnerships like Evan Williams' collegiate programs or broader cultural moments like America 250, the goal is simple. Be present in the moments that matter.

ELEVATING THROUGH INNOVATION AND PREMIUMIZATION

At the same time, we continue to see strong demand for premium, differentiated offerings.

That demand is not new, but it is becoming more defined. Consumers are looking for products with a point of view. They want craftsmanship they can understand and quality they can trust.

Across our portfolio, that has led to continued investment in both innovation and premium expressions. Releases like Old Fitzgerald 7-Year, Elijah Craig 15-Year and Heaven Hill Grain to Glass reflect that focus. So do newer expressions like Deep Eddy Espresso, which bring a different kind of relevance to evolving consumer tastes.

It is not about chasing trends. It is about knowing who you are and continuing to raise the bar.

RESPECTING WHAT GOT US HERE

Even as we look forward, there is a growing appreciation for what has endured.

Legacy brands, time-tested processes and a commitment to cratsmanship are not just part of our history. They are part of our advantage. In a market that can sometimes move quickly, consistency matters.

Brands like Elijah Craig and Evan Williams continue to resonate because they are grounded in something real. They have earned trust over time, and that trust shows up in how consumers choose and how partners engage.

That same mindset extends to the way we operate. Long-term thinking, disciplined investment and respect for the category have always been central to our approach.

EXPANDING THE CONVERSATION

Growth is also coming from new places.

The tequila category remains one of the most dynamic areas in spirits. Tequila Ocho continues to set the standard for cratsmanship, while Lunazul remains one of the fastest-growing and most well-liked brands in the agave space. Together, they reflect how consumer interest is expanding, not replacing, what has come before.

This is not about one category winning over another. It is about a broader, more diverse spirits landscape.

If you step back, a pattern starts to emerge.

CONNECTION. ELEVATION. RESPECT.

Different words, but they point to the same idea. This industry works best when it builds on what has always been true while staying open to what comes next.

For Heaven Hill, that means continuing to invest in our brands, our partnerships and the communities we serve. It means showing up as a reliable partner within the control-state system. And it means staying focused on the long-term, even when the short-term conversation gets noisy.

We are optimistic about where we are headed, not because the path is simple, but because the foundation is strong.

We look forward to another year of working together, building momentum, and continuing to move the industry forward.

Together, we thrive.

Scott Schrader

DIAGEO

SVP/GM - Control State

"CONNECT, RESPECT, ELEVATE" - CAPTURING THE MOMENT

"In the middle of difficulty lies opportunity." Albert Einstein, Physicist (1879 -1955)

The theme of this year's conference - Connect, Respect, Elevate - captures both the spirit of our industry and the moment we are navigating together.

To connect is to build meaningful relationships across every part of our ecosystem. As Chairwoman Durbin notes, connection is foundational to how we work. For Diageo, that means strengthening our partnerships with control states, distributors and retailers, while staying closely attuned to the needs of our consumers. In an environment where focus and alignment matter more than ever, strong relationships are what enable us to move with clarity and purpose.

To respect is to recognize that we operate in a dynamic environment that continues to evolve. We don't always see things the same way - and that's exactly why listening matters. Respect means meeting our partners and consumers where they are today, approaching differences with civility and acknowledging that the path forward requires adaptability, understanding and shared perspective.

To elevate is how we bring it all together. Rooted in hospitality, it's about going the extra mile - through education, execution and a commitment to leaving things better than we found them. At Diageo, we are evolving our strategy to meet this moment - simplifying how we operate, sharpening our focus and ensuring our portfolio is positioned to win across a broader set of occasions and consumer needs.

Connect. Respect. Elevate. When we live these principles together, we strengthen our industry and grow responsibly and sustainably for the future.

by KYLE SWARTZ

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5/11/2026

ABC still turning a profit for state despite declining sales

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Bristol Herald Courier

​Virginia liquor sales are continuing to decline, but somehow the Alcoholic Beverage Control Authority is still turning a profit for the state budget.


ABC leaders expect to return almost $231 million in profit to the state general fund budget by the end of the fiscal year on June 30, but the authority has lowered its net revenue estimate by more than $15 million below the forecast used for this year's budget, driven by a projected $20 million drop in store sales. 

They still expect to exceed the state profit requirement by $500,000, but they're counting more on reducing operating costs than expanding alcoholic beverage sales, which have dropped sharply in Virginia and other states that control liquor sales since the end of the COVID-19 pandemic. 

"We're still contributing more than $230 million back to the Commonwealth," said David Alfano, chief financial officer, in a presentation to the ABC Board of Directors on Wednesday. 

Virginia ABC profit goes up for now as revenue declines 

ABC is doing it by shrinking its operations closing 10 of its roughly 400 retail stores and leaving 70 jobs vacant through the end of April. Board members made clear on Wednesday that trend will continue to reduce annual operating costs by about $400,000 per store. 

"As long as we continue to get declining sales, we will get closing stores," said CEO Dale Farino, a former wholesale wine and beer distributor, who then-Gov. Glenn Youngkin appointed in 2024 after the departure of the previous CEO under cost-cutting pressure from the governor's new chief transformation officer. 

For Virginia distillers, who must rely on ABC for selling their products in an alcohol-control state, the focus on reducing costs and closing stores misses the point for a state-run monopoly that exists for retail sales. 

"They're a retail operator what are they doing to get traffic through stores?" asked David Cuttino, owner of Reservoir Distillery in Richmond and vice president of the Virginia Distillers Association. 

Association President Becky Harris, co-founder of Catoctin Creek Distillery in Loudoun County, said Virginia distillers are looking for more freedom from ABC to boost their sales making it easier to sell at farmers markets, for example as they face mounting challenges from the effects of inflation and slackening job growth on consumer spending. 

"Virginia distillers are hurting," Harris said in an interview on Wednesday. "I'm talking to a lot of people who are thinking they may not make it through the year." 

With about 60 home-grown distillers in Virginia, the industry is also worried about ABC cutting back on the range of alcoholic products it offers, including theirs, as a way to offset falling sales. 

Small distillers can't compete on price with big national brands Tito's vodka remains ABC's top-selling brand but Harris said, "That doesn't mean they're not in demand across the commonwealth." 

She said Virginia distillers contribute more than just store sales. They buy grain from Virginia farmers and wood for barrels from state lumber companies. 

"Our economic impact is more than just store sales," Harris said. 

ABC sales were strong coming out of the pandemic, but the Youngkin administration wanted the semi-independent authority to boost its net profit margins by cutting costs and raising its revenue target. It demanded almost $24 million in expense reductions in 2023, while raising revenue expectations by 5% a year, despite signs that liquor consumption was falling nationally for a variety of reasons, including competition from cannabis products. 

The trends forced the state to reduce its revenue expectation by $110 million in the two-year budget it adopted in 2024, and ABC has maintained its focus on cutting costs ever since. 

"That's a continuing, ongoing, daily process," Farino said in response to board questions about future cuts. 

ABC Chairman Tim Hugo, a former Republican delegate from Northern Virginia whom Youngkin appointed in early 2023, said the authority is responding to the same decline in liquor sales as other states since the end of the pandemic. 

"The numbers are just going down across the country," Hugo told the board. 

In Virginia, the downward trend intensified in March, with store sales down by $5 million and gross profit by $1.7 million after adding excise tax collections. The authority partly offset the revenue loss by reducing expenses, but it ended the month with $1.1 million less profit than expected, a decline of 6%. 

Through the first nine months of the year, store sales were down by $10.6 million, but ABC reduced its operating and regulatory costs to increase net profit by $4.3 million. Compared to 2025, however, ABC's net profit was down by $7.2 million, or 4%. Most of the cost savings came from lower salaries and benefits because of unfilled jobs. 

As a result, the authority revised its budget forecast last month to reflect a $19.8 million decline in store sales, projected through the end of June, and an unexpected $2 million expense from the $1,500 bonus that the General Assembly and Gov. Abigail Spanberger awarded state employees in the revised budget she signed on Feb. 20 for the current year. 

In order to meet its profit requirement for the budget, ABC reduced its operating expenses by $5.2 million and carried forward $4.8 million in profit from last year. 

The next step is to adopt a new budget for the fiscal year that will begin on July 1.

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12/21/2025

Drinkers say Texas vodka worth a shot Tito's was the 2025 spirit of choice around the commonwalth

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The Virginian Pilot
​
john.buzbee @virginiamedia.com


Tito's Handmade Vodka was once again the preferred hooch of Virginians this year, according to the Virginia ABC.

Tito's was the state alcoholic beverage control authority's top seller for the eighth year in row - customers purchased $75 million worth.

Bottled and distilled in Austin, Texas, Tito's poured past the No. 2-selling liquor by over $40 million. Hennessy VS Cognac sold $32.2 million worth of units.

Jack Daniel's Tennessee Whisky sold $27.4 million statewide, Jim Bean Bourbon sold $22 million and Patrón Silver tequila $20 million. Tequila sales grew last year, making up six of the 10 fastest-growing labels.

About 1.6 million cases of vodka were sold, making it the preferred spirit of the commonwealth based on volume sold. There were about 1.1 million cases of tequila sold, followed by about 800,000 cases of whiskies, 526,000 cases of cordials and 406,000 cases of rum.

In 2024, Virginia ABC reported nearly $1.5 billion in total gross sales, marking an increase from the 2023 total. But the number of adults who partake in alcohol has dropped to an all-time low in the past 90 years, at just 54%, based on a 2025 Gallup poll.

Profits generated by Virginia ABC stores, the only retailers of liquor in the commonwealth, go toward the state's general fund. The authority describes itself as the leading contributor to the fund, which supports education, health and transportation initiatives. Its roughly 400 stores have levied about $3 billion for the general fund in the past five years, the authority reports.

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2/11/2025

Spirits Industry Holds Steady in Market Share Amid Economic Challenges in 2024

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Distilled Spirits Council Annual Economic Briefing:

The Distilled Spirits Council (DISCUS) reported today that U.S. spirits maintained its market share while revenues slipped in 2024 and warned that tariffs on spirits would further curtail industry growth, during its annual economic briefing for media and analysts.
“While the spirits industry has proven to be resilient during tough times, it is certainly not immune to disruptive economic forces and marketplace challenges, and that was definitely the case in 2024,” said DISCUS President and CEO Chris Swonger. 
Swonger reported that spirits supplier sales in the United States were down -1.1% in 2024 totaling $37.2 billion, while volumes rose 1.1% to 312.2 million 9-liter cases.
For the third year in a row, the spirits sector maintained its market share lead in 2024. Spirits market share totaled 42.2%, with gains for more than two decades. The spirits sector has gained more than 13 points of market share since 2000. Each point represents $880 million in supplier revenue.
Swonger noted that spirit sales were still continuing to normalize following the robust sales spikes during the pandemic, and economic headwinds including high prices and inflation rates created additional challenges for the industry.
“Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits,” said Swonger.  “Our sales dipped slightly but consumers continued to choose spirits and enjoy a cocktail with family and friends.”
Swonger noted that higher interest rates also impacted the three-tier supply chain with wholesalers and retailers continuing to deplete inventory build ups and cautiously restock products.
CONSUMER DEMAND REMAINS STRONG FOR SPIRITS RTDs AND HIGH-END TEQUILA/MEZCAL 
Presenting an overview of the spirits sales trends in 2024, Christine LoCascio, DISCUS chief, policy, strategy & membership, reported that despite the overall slowdown, spirits ready-to-drink (RTD) products and Tequila/Mezcal continued to grow in popularity in 2024, with sales up 16.5% and 2.9%, respectively.
TOP 5 SPIRITS CATEGORIES BY REVENUE IN 2024: 
  • Vodka sales flat totaling $7.2 billion
  • Tequila/Mezcal sales up 2.9% totaling $6.7 billion
  • American Whiskey sales down -1.8% totaling $5.2 billion
  • Cordials sales down -3.6% totaling $2.8 billion
  • Premixed cocktails including spirits RTDs up 16.5% to $3.3 billion
2024 POLICY WINS & 2025 POLICY PRIORITIES
In the public policy arena, Swonger highlighted a number of important victories in 2024 at the federal and state levels including:
  • The suspension of the EU’s retaliatory tariff on American Whiskeys until March 31, 2025
  • Wins on spirits RTDs in three states​
  • Defeated tax threats in 11 states​
  • Third party delivery enacted in Delaware & Maryland
  • Tastings laws expanded in Ohio & West Virginia
  • Cocktails to-go permanency in five new states, plus a 5-year extension in New York
Swonger also outlined DISCUS’ priorities for 2025 including:
  • Advocating for the permanent suspension of retaliatory tariffs on spirits products
  • Ensuring the Dietary Guidelines for Americans are based on the preponderance of scientific evidence
  • Fairer tax treatment and increased retail access for RTD products in the states
  • Defending against hospitality tax threats
  • Expanding marketplace modernizations including cocktails to-go and direct-to-consumer shipping
DISCUS WARNS TARIFFS ARE A KEY THREAT TO THE VITALITY OF THE SPIRITS SECTOR
During the briefing, DISCUS discussed the recent tariff threats impacting spirits imports and exports, and sounded the alarm over the scheduled reimposition and doubling of the EU’s tariff on American Whiskey to 50% on April 1 related to the steel and aluminum trade dispute.
“One of the most critical issues facing U.S. distillers in 2025 is the threat of tariffs,” said Swonger. “Since the suspension of the EU’s tariffs on American Whiskey, our exports have rebounded to record highs. The reimposition of these tariffs at a 50% rate would gut this growth and do irreparable harm to distillers large and small. It would be a catastrophic blow that will force many distillers out of our largest export market.”
Special guest speaker, Sonat Birnecker Hart, president and founder of KOVAL Distillery in Chicago, underscored the devastating impact tariffs have had on small craft distillers.
“These tariffs have wreaked havoc on our craft distilling community,” said Birnecker Hart. “Many craft distillers have expended great time, effort and resources to expand into international markets only to see their dreams shattered by tariffs that have absolutely nothing to do with our industry.  The return of tariffs will not only hurt my distillery but my local farmer too, and this pain will be felt in towns and cities across the country where 3,000 small craft distilleries are boosting jobs, tourism and agriculture.”
Swonger said the global spirits industry is united in urging their respective governments to continue to negotiate to ensure that spirits products do not get caught up in trade disputes.
“The global spirits associations are working side-by-side to urge our governments to exclude distilled spirits from these trade disputes,” said Swonger. “Tariffs on spirits not only harm distillers, they also severely impact farmers and hospitality businesses including restaurants and bars, which are continuing their fragile recovery after the pandemic. We are making our case to the Trump administration that our industry has thrived with zero-for-zero tariffs and that distilled spirits’ ‘distinctive products’ status, which is recognized by the U.S. and our trading partners, means that these special spirits can only be made in their designated countries.”
###
SUPPORTING MATERIALS:
DISCUS Annual Economic Briefing Presentation – 2024
Economic Briefing Support Tables – 2024 

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10/27/2022

Beer is on pace to lose its leading share of the U.S. alcohol market as spirits surge

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Source: https://www.cnbc.com/
October 27, 2022
KEY POINTS
Beer sales are up, but it hasn't been enough to counter the explosive rise of the spirits category.

Beer has been losing market share to spirits for the last 12 years in the U.S., according to a trade group.

Spirits dominate the share on liquor delivery app Drizly, the company said.

Beer is taking up less of the American booze market as beverage companies flood the market with buzzy new drink categories, including ready-to-drink cocktails.

Even legacy beer companies have expanded outside of their staple beer products with innovations for spirits drinkers.

Anheuser-Busch InBev, the world's largest brewer, has diversified its portfolio to include hard seltzers, canned wine and canned cocktails. Molson Coors dropped the "Brewing Co" from its name in 2019 to reflect a similar expansion into spirits.

This week, Samuel Adams maker Boston Beer debuted Loma Vista Tequila Soda, a ready-to-drink tequila cocktail in both lime and mango flavors. The lineup is launching in a handful of markets, including Austin, Texas; Fort Collins, Colorado; Wichita, Kansas; and Kansas City.

Boston Beer said its tequila cocktails sit at the crux of "the explosive growth of the RTD beverage segment" and "the rise in popularity of tequila." DISCUS said the top five spirits by revenue growth in 2021 were vodka (4.9%), tequila/mezcal (30.1%), American whiskey (6.7%), Brandy & Cognac (13.1%) and cordials (15.2%).

Last year was the 12th consecutive year spirits have taken away market share from beer in the total U.S. alcoholic beverage market, according to a report earlier this year from the Distilled Spirits Council, a national trade organization.

The beer category, which includes hard seltzer, accounted for 42% of the U.S. beverage alcohol market in 2021, while spirits accounted for 41%, according to DISCUS. Wine accounted for 16%. At this trajectory, spirits are pegged to overtake beer in market share in the next few years, even though beer sales have grown.

"Spirits consumers are willing to spend a little extra for a fine spirit because they are choosing to drink better, not more," DISCUS' top spokeswoman, Lisa Hawkins, told CNBC this week.

The downward trend of beer market share has also been reflected on the online ordering and alcohol delivery platform Drizly. Over the past 12 months, beer has accounted for a 14% share, a two percentage point drop from the previous 12 months, according to Liz Paquette, head of consumer insights at Drizly. Spirits accounted for a 45% share, increasing by one percentage point.

"The beer share decline in recent years on Drizly is mostly a result of share shift toward the spirit category, driven by the surge in categories, like tequila and ready-to-drink cocktails," said Paquette.

Paquette added that beer actually accounts for 11% when hard seltzers aren't included.

However, while beer is shrinking in market size, sales are actually up. Wall Street, in turn, likes liquor companies such as Constellation that make premium, higher-priced beer.

"There's pockets of growth," said Bart Watson, chief economist for the Brewers Association. He said beer drinkers are seeking out more premium offerings as well. In 2021, overall beer sales were up 1% year over year - hitting $100.2 billion - and sales of craft beer jumped 8%, according to the association.

Craft beer, said Watson, may be the industry's answer to consumers' increased willingness to spend more on variety, flavor and quality. Craft beer is typically made with higher quality ingredients, which provides consumers with a more flavorful and distinctive tasting beer than mass-produced options.

"Those reaching for craft often want a variety of flavors and to try new things," said Watson, adding that craft brews "really helped beer not lose more market share over the last decade."

The association said the number of operating craft breweries in the U.S. reached an all-time high in 2021 of 9,118.

Paquette of Drizy said there are trend changes happening within the beer category - subcategories like light lagers, which contain a low alcohol volumes, and even non-alcoholic beer are showing growth across Drizly, as well.

Still, it looks like cocktail culture is primed to be dominant in the United States.

"Consumers are drawn to products that have a rich heritage and an interesting back story, and that's what spirits have to offer," said Hawkins of DISCUS.

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