Premium vs. Value Spirits: What Actually Drives Sales

Premium or value? It sounds like a simple question, but consumers don’t make their spirits purchases quite that neatly. A shopper might pick up an affordable bottle for a casual weekend and spend considerably more when buying a gift. A restaurant guest may order a familiar mixed drink during happy hour but choose a premium pour with dinner. Even within the same category, what feels “worth it” can change depending on the occasion, budget, brand, and experience.

That’s why a successful spirits program usually needs more than a commitment to one end of the price spectrum. Understanding what premium and value products each brings to the assortment can help retailers and operators build a mix that serves more customers and gives them a reason to buy across different occasions.

Premium and Value Are About More Than Price

Price is obviously part of what separates a value spirit from a premium one, but it isn’t the only difference…

• Value spirits are generally positioned to give customers a dependable product at an accessible price point. Familiarity, versatility, and affordability can all play an important role in the purchase. For an on-premise business, these products may also serve as dependable well options or support cocktails where managing ingredient costs is especially important.
  
  
• Premium spirits typically ask the customer to pay more for something they perceive as different or better. That could be quality, ingredients, production methods, age, origin, craftsmanship, packaging, brand reputation, or simply an experience that feels appropriate for a special occasion.

The important word there is perceive. A higher price doesn't automatically make a product feel premium to the person buying it.

IWSR's latest analysis of premiumization found that consumers are becoming more selective about when they're willing to spend more. Price growth in beverage alcohol has actually lagged inflation in recent years, and consumers increasingly want a clear reason to trade up. That may be a trusted brand, a better drinking experience, something unique, or a bottle that fits a particular occasion.

For businesses, that changes the premium-versus-value conversation. The question isn't simply, “How many expensive bottles should we carry?” It’s whether the assortment gives customers choices that make sense at several levels of spending.

Consumers Are Trading Up and Trading Down

One of the more interesting liquor sales trends right now is that value-seeking and premiumization are happening at the same time. Recent research on the growing divide between premium and value purchasing found that U.S. shoppers are increasingly moving toward both ends of the price spectrum. Some purchases are driven by a willingness to pay more when consumers see enough value in the upgrade, while others are shifting toward lower-cost alternatives.

And these aren't necessarily two completely different groups of people. Consumers can move between those mindsets depending on what they're buying and why. Spirits are a good example. Someone buying whiskey for cocktails at a large party may be focused on affordability and versatility. The same person buying a bottle for their dad’s birthday might happily spend more. A restaurant guest could choose a value-priced happy hour drink on Friday and order a premium tequila while celebrating an anniversary on Saturday.

Economic pressure is influencing those decisions, too. Analysis of the U.S. beverage alcohol market found cost was the most common reason U.S. consumers gave for drinking less, with 31% citing affordability. Consumers are becoming more selective about where they spend their alcohol dollars and increasingly weighing price against perceived quality. That makes value important, but it doesn’t eliminate the premium opportunity.

Give Consumers a Reason to Trade Up

Premium spirits can still be a strong part of the mix when the product and occasion justify the price. The on-premise market is a good example. Research on U.S. spirits consumers in bars and restaurants found that 67% of spirits drinkers are willing to pay more for higher-quality drinks. Many also say they would rather have fewer premium drinks than more standard ones.

That creates obvious opportunities for restaurants and bars, where the experience itself can make trading up more appealing. A premium spirit in a well-made cocktail, a bartender recommendation, or a higher-end pour with dinner can give the guest a reason to spend more.

Retailers have different opportunities. Gifting, holidays, celebrations, entertaining, and personal discovery can all create moments when a customer is willing to move up in price. Packaging and brand recognition can matter more in some of those situations, particularly when the shopper is buying for someone else.

But premium shouldn't simply mean filling the top shelf with expensive bottles and waiting. Customers still need to understand what makes the upgrade worthwhile. If your team can explain the difference, your merchandising helps shoppers navigate the category. And if the brand already has strong recognition, the value of the trade-up is easier to see.

Value Has a Job to Do, Too

Value spirits can sometimes be treated as the less interesting side of the category, but they serve an important purpose in a balanced program. For retailers, accessible options give price-conscious customers a place to shop without leaving the category altogether. They can also support high-volume occasions such as parties, entertaining, or cocktail making, where customers may prioritize versatility and budget.

For bars and restaurants, value-priced products can play an important role in well programs, happy hour, event packages, and high-volume cocktails. That doesn’t mean choosing based on price alone. Consistency, taste, availability, and how the product performs in the drink all matter.

This is particularly relevant in a spirits market where consumers are watching their spending. The Distilled Spirits Council's 2025 economic briefing reported that U.S. spirits supplier sales declined 2.2% in 2025 amid weaker consumer confidence and continued economic pressure, even though spirits maintained the largest share of the beverage alcohol market. If customers are being more careful about what they spend, eliminating value choices can create just as much of an assortment gap as overlooking premium.

Your Location Helps Determine the Right Mix

Premium and value also perform differently depending on where and how you're selling. A traditional liquor retailer may need meaningful options across several price tiers because shoppers enter the store with very different budgets and occasions in mind. One customer may be restocking a familiar bottle, another may be looking for a gift, and another may want to try something new.

Convenience-oriented retail may emphasize recognizable brands, accessible price points, package size, and products that fit quick purchasing occasions. A specialty retailer, on the other hand, may have customers who expect more depth within premium and super-premium categories.

Bars and restaurants have their own considerations. A neighborhood bar may need strong well and call options with a smaller premium selection. A cocktail-focused restaurant may have more opportunity to feature premium spirits in signature drinks. Event venues often need products that work within beverage packages while still offering upgrade opportunities when appropriate.

Even two businesses that look similar on paper can have different needs based on neighborhood, demographics, tourism, local competition, and customer preferences. That’s why national liquor sales trends should be treated as context, not a prescription.

Build a Price Ladder, Not a Price Wall

Rather than deciding whether your program should be “premium” or “value,” it might be more useful to look at the path you're giving customers through each important category. Take whiskey, tequila, or vodka and ask yourself:

• Is there an approachable option for someone focused primarily on price?
• A dependable middle choice?
• A recognizable premium option for someone willing to trade up?
• Depending on the business and category, does an even higher tier make sense?

The goal isn't to hit an arbitrary number of bottles at each price point. It’s to avoid creating dead ends.

If the assortment jumps abruptly from value to very expensive, customers looking for something in between may struggle to find the right product. If you have several nearly identical products clustered at one price point, they may simply compete against each other without adding much meaningful choice.

Current market data also reinforces why flexibility matters. While premium-and-above products generally outperformed standard and value tiers globally in 2025, premium-plus spirits themselves still faced pressure. Consumers haven't stopped trading up, but they're scrutinizing those decisions more carefully.

For a retailer or operator, that means the right balance may change over time. Watch what sells, where customers trade up, which value products consistently move, and where products are sitting longer than expected. Those patterns can tell you more about your ideal mix than a national premiumization headline ever could.

Find the Mix That Fits Your Business

There’s a place for both premium and value in the spirits business. The harder part is determining how much space each deserves in yours. Bernick’s works with customers to build spirits programs around the people they actually serve. Our team can help look at category coverage, price points, proven sellers, premium opportunities, and products that may fill any gaps in the current assortment. As purchasing patterns change, we can continue the conversation and help refine the mix over time.

That flexibility matters because there isn't one premium-to-value ratio we would recommend to every customer. The right balance for a high-volume neighborhood bar isn't necessarily the right one for a specialty retailer, restaurant, or event venue. Even businesses within the same channel can serve very different customers.

If you're evaluating a premium spirits wholesale assortment, looking for a value spirits distributor, or simply wondering whether your current product mix is giving customers enough choice, Bernick’s can help you take a closer look.

Because premium and value aren't competing strategies. When they're used thoughtfully, they're two different ways to give your customers what they're looking for.