This was a year of contradictions in drinks. Structural headwinds collided with real momentum — and the brands that grew weren’t following old rules. They were aligning with how people actually drink, shop, and spend today.In this special year-end episode, Erica Duecy, Scott Rosenbaum, and Caroline Lamb break down the biggest forces reshaping the drinks industry — across alcohol, non-alc, functional, and THC — and what they signal for growth heading into 2026.🔶 Functional is now foundationalFunctional beverages — from prebiotic sodas and adaptogenic spirits to THC drinks — moved firmly into the mainstream. It’s now a $9B+ category growing at double-digit rates. Brands winning here aren’t just selling benefits; they’re anchoring products to rituals, occasions, and repeatable habits.🔶 THC beverages hit an inflection pointLow-dose THC drinks crossed a legitimacy threshold, with major retailers and alcohol distributors testing the category. Regulatory uncertainty remains, but consumer demand is clear — and early movers are scaling at real volume.🔶 Wine isn’t broken — demand is shiftingWhile total wine declined, several segments outperformed: White blends, alternative whites, premium rosé, non-alcoholic wine, and innovative formats like cans. The common thread is accessibility, clarity, and occasion-fit — not prestige or tradition.🔶 Gen Z is drinking — just differentlyRoughly 70% of legal-age Gen Z consumers in the U.S. drank alcohol in the past six months, bringing them in line with older generations. What’s changed is how they drink: Flavor-first, value-driven, and highly occasion-specific — with easy switching between alcohol and non-alc.🔶 Economic pressure is the biggest headwindTrade-downs, format shifts, and tighter budgets shaped every category. Premium still works, but only when tied to intentional consumption: fewer drinks, better quality.🔶 Culture matters againSavory and umami flavors gained traction in cocktails, while nostalgia-driven branding resonated across categories. Comfort, familiarity, and emotional connection beat novelty.Why listen? Because the brands winning in 2025 didn’t chase hype — they aligned with real consumer behavior. This episode delivers a clear, data-driven look at where growth is actually happening, and what drinks brands need to rethink going into 2026.Don’t miss our next episode, dropping on January 7.For the latest updates, follow us:Business of Drinks:YouTubeLinkedInInstagram @bizofdrinksErica Duecy, co-host: Erica Duecy is founder and co-host of Business of Drinks and one of the drinks industry’s most accomplished digital and content strategists. She runs the consultancy and advisory arm of Business of Drinks and has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies.LinkedInInstagram @ericaduecyScott Rosenbaum, co-host: Scott Rosenbaum is co-host of Business of Drinks and a veteran strategist and analyst with deep experience building drinks portfolios. Most recently, he was the Portfolio Development Director at Distill Ventures. Prior to that, he was the Vice President of T. Edward Wines & Spirits, a New York-based importer and distributor.LinkedInCaroline Lamb, contributor: Caroline is a producer and on-air contributor at Business of Drinks and a key account sales and marketing specialist at AHD Vintners, a Michigan-based importer and distributor.LinkedInInstagram @borkalineSPONSOR: SWIG Partners is exclusively offering $100 off their supplier-distributor matchmaking fee when you mention the Business of Drinks podcast, or inquire via this link: ⁠https://www.swigpartners.com/businessofdrinksIf you enjoyed today’s conversation, follow Business of Drinks wherever you’re listening, and don’t forget to rate and review us. Your support helps us reach new listeners passionate about the drinks industry. Thank you!

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