In this Q&A for our latest Category Insight supplement, Gebr. Heinemann Head of Buying Spirits Manuel Schilling and Head of Buying Wine, Sparkling, Beer & Beverages Hannah Gordon-Lesgourgues assess the travel retail landscape for wines & spirits today. Click here for access to the Magazine version (page 5).
What have been the big factors influencing the performance of the wines & spirits business in 2025?
Firstly, global economic uncertainties, such as tariffs and taxes, have played a significant role.
Additionally, changing climate conditions are impacting grape production and influencing the types of wines that can be produced. A generational shift, particularly the influence of Gen Z on alcohol consumption, has also been notable.
Technological innovations have introduced new distribution channels and expanded ecommerce opportunities. Changing consumer preferences, with an increase in demand for non-alcoholic & low-alcohol options, as well as organic options have further shaped the market. Specifically for travel retail, the absence of Chinese and business travellers continues to be felt.
At Gebr. Heinemann, the wines & spirits segment has had a slightly positive impact on our markets. In the spirits segment, Tequila has performed well, while in the wine segment, Champagne and sparkling wine have shown promising development.
However, despite the positive performance in many sub-categories, Cognac and whisky are under pressure due to several factors such as changed consumer behaviour.
What consumer trends do you see driving this category today across your key markets?
The growing popularity of non-alcoholic beverages, particularly 0% ABV drinks, is evident among health-conscious consumers, although this trend is more visible in domestic markets rather than in travel retail.
Premiumisation is another trend, with increased demand for high-quality, premium products.
Sustainability is also a key driver, with consumers showing a preference for organic and sustainably-produced wines & spirits.
Convenience has become increasingly important, with a rise in direct-to-consumer (DTC) sales and online purchasing.
Experiential consumption, characterised by an interest in unique flavours, ready-to-drink mix-ins and craft experiences, is also gaining traction.
By category in 2024, Tequila was among the fastest-growing spirits categories cited by the company. How does its trajectory look today?
Tequila has experienced a slowdown after several years of double-digit growth. However, it is still growing, particularly in the super-premium and premium segments.
Consumer demand remains high for ultra-premium and limited-edition products.
Market trends suggest modest growth is expected, with a focus on high-quality and unique offerings. Asian travellers continue to be the biggest group of Tequila customers.
In what sub-categories are you seeing the strongest growth and which offer the greatest opportunity in the years ahead?
We are seeing growth in spirits-based premixed cocktails, especially in canned formats. Tequila and agave spirits continue to perform strongly, particularly in the premium segments. There is also high demand for Japanese whiskies.
For wine we are seeing a clear shift towards lighter wine options, where white wines are starting to outpace heavier red wines and sparkling wines are gaining popularity in all price segments.
Looking ahead, sub-categories with the greatest opportunity include sustainable and organic products, as there is a growing consumer preference for environmentally friendly options.
Additionally, the expansion of direct-to-consumer (DTC) sales and home delivery services presents a significant opportunity.
Several campaigns and animations have also had a positive sales impact in the past year. The NBA Hennessy campaign in Q4 2024 generated significant customer excitement, aligning with our mission statement.
The Hendrick’s Perfumery campaign in Q2 2024 showcased a spectacular assortment, attracting considerable attention. The Gin Festival, with its cross-brand communication, provided customers with a fantastic selection, contributing to its success.
In the wine and sparkling wine segment, we have developed innovative concepts to enhance customer experiences & orientation, to drive sales. One of our key initiatives is partnering with ViVino in Copenhagen and this concept will be further expanded in 2025.
What more are you seeking from brand partners to elevate the spirits & wines offer?
Innovation is crucial, with a focus on developing unique and high-quality products that stand out in the market. Sustainability is also important, with a commitment to environmentally friendly practices and sustainable sourcing.
We value collaborative marketing efforts to enhance brand visibility and consumer engagement.
Sharing data and insights on consumer trends is essential to better tailor our offerings. Flexibility and adaptability to changing market conditions and consumer preferences are also highly valued. Plus we are looking for partners who fully support our strategy and mission.
