US Restaurant Wine Sales Slide - Value and Sparkling Wines Offer Growth

On-Premise Wine Market Retreats

U.S. restaurant (on-premise) wine sales have softened considerably. Southern Glazer’s data shows on-premise wine volume down ~27% and value down ~12% since 2019. NielsenIQ reports that fine-dining outlets are closing, and wine’s share of on-premise beverage alcohol has dipped (–0.3 percentage points year-on-year) while ready-to-drink (RTD) beverages have gained (about +0.3 points). In practice, diners are opening their wallets for wine less often. Industry analysis finds total wine spend in restaurants is roughly 12.7% of all on-premise BevAl dollars, roughly flat, but only sparkling white wine showed sector growth (+0.6% to $2.8B) among wine sub-categories.

Wine-by-the-glass and bottle price strategies are shifting: diners want quality at moderate cost. Restaurants now see “guests looking for quality without the premium price tag”. Ultra-premium bottles (>$1,000) are being cut - Lettuce Entertain You reports a 5% drop in $1,000-plus sales - and operators are replacing them with “high-value” selections. For example, a Napa Cabernet at ~$100 is moving briskly. Sommelier-driven lists are favoring classic regions at affordable prices - think Loire Sauvignon Blanc instead of Napa, or Mendoza Malbec instead of Bordeaux, and so on. In short, affordability without sacrificing provenance is key: guests still want a great wine, just without the haute-cuisine markup.

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New Regions and Varietals Grab Attention

Brand owners should note a trend toward curiosity-driven purchasing. Younger drinkers in particular are opening to unfamiliar regions and styles on restaurant wine lists. Intipalka - a Peruvian brand - is a case in point: distributed nationally, it grew ~14,000 US cases (2021) and is targeting tens of thousands more. Peru’s entry-level Malbecs and blends are selling on the strength of quality-to-price. Similarly, sommeliers report success with under-the-radar geographies - e.g. Spain’s Rías Baixas or Portugal’s Baga, often offered by the glass or in flights, which invites trial. In sum, brands from “new-wave” wine regions (South America beyond Argentina/Chile, Eastern Europe, secondary Old-World appellations) can ride this wave, provided they highlight approachable flavors and story.

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White and Sparkling on the Rise

White and sparkling wines are noticeably outperforming reds on premise. Industry research shows sparkling whites (e.g. Cava, Crémant, Prosecco) were the only wine segment to post dollar growth recently. NielsenIQ cites sparkling wine as a “bright spot” - imports up ~1.6 points share year-on-year - and González Byass (Spanish producer of Tío Pepe sherry/Cava) reports Cava sales up in double digits since late 2025. Table whites are also edging up: Albert Bichot USA notes Sancerre and other Loire sauvignons are up “high double digits” year-on-year. (By contrast, California reds like Cabernet and Zinfandel are losing share on-premise.) For brand strategists, this means pushing food-friendly, lower-alcohol whites and sparkling - for instance, highlight Albariño, Grüner Veltliner, or Chenin Blanc; feature method Champenoise sparklers at mid-range prices; or promote local domestic sparklings. Packaging such as colorful cans or flutes can also tap into the visual-appeal trend.

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RTDs and Low-Alcohol Cocktails Gain

Off-premise trends have entered restaurants: ready-to-drink and non-/low-alcohol beverages are booming. Nielsen reports on-premise RTD cocktails (including wine coolers and spirit mixers) surged ~40% in value in the latest year. In practice, RTDs remain a small share (~1–2%) of on-premise sales, but companies see exponential growth. Free Spirits (non-alcohol spirits co.) says its RTD portfolio is “the fastest growing segment… up more than 100% year over year”. Operators value RTDs as labor- and margin-friendly solutions: they’re quick to serve, with consistent cost and recipe. Beyond RTDs, the on-premise environment now expects non-alcoholic options and “lighter” pours: Nielsen’s trend report notes NA beer, wine and cocktails continuing to proliferate, often with functional twists (adaptogens, botanicals). This aligns with shifting consumer preference for moderation: wine lists should include spritzes, low-alc blends (Vinho Verde, frizzante style wines, etc.), and cocktail options like mini wine spritz flights.

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Strategic Takeaways for Brands

For alcohol brand C-suite and marketing teams, the on-trade market requires agility and insight. Key actions include:

• Offer “Affordable Premiums.” Emphasize value-tier and classic appellations that pair well with food. For example, promote Old World winners (Touraine Sauvignon, Mendoza Malbec, Oregon Pinot) at sub-$20/bottle off-premise or $25–$40/glass on-premise.
• Push Whites and Sparkling. Invest marketing in versatile whites (e.g. Albariño, Vinho Verde, or domestic Viognier/Chardonnay) and high-quality sparklers (Crémant, Franciacorta, Cava). Nielsen data suggests these segments are growing.
• Leverage Format Innovation. Collaborate with venues to offer flights, by-the-glass pours, and RTD extensions of your brands. Mini-bottles or pre-mixed wine cocktails allow guests to taste new varieties without commitment.
• Engage Younger Consumers. Target Millennials/Gen Z with social-friendly storytelling. Use clear labels (sweetness, flavor profile) as Wine Market Council advises and position wines for gatherings (outdoor dining, casual meals). Offer educational tastings or “vibes” displays in retail that reflect these trends.
• Monitor Data and Adapt. Track Nielsen/SGWS on-prem data by region. For instance, if domestic wines are gaining share in the Northeast or beer is dominating bars, adjust focus accordingly. Trim SKUs and support fast-turning lines: Nielsen warns that operators are cutting back-bar complexity.
• Highlight Experiential Appeal. Partner with high-growth venues (airport lounges, members’ clubs, college town gastropubs) on limited editions or branding events. Visible “Instagrammability” - label art, glassware design - can tip millennial choices.

U.S. restaurants are serving less wine overall, but segments are shifting. Brands that adapt by offering value-oriented, on-trend wines (and RTDs) - and who provide tools for restaurants to promote them - will be best positioned to capture the pockets of on-premise growth.