How The Alcohol Industry Can Leverage Tariff Situation To Increase Sales

News about the new tariffs is all over the media and creating a sense of uncertainty for small business owners. However, if you are creative, you can make this a “probortunity”- a problem that you leverage into an opportunity for your business. Small business are flexible and nimble enough to react and change to market conditions easily. Here are some marketing ideas you might try if you are a bar, restaurant, liquor store or craft beverage producer to take advantage of this hot topic.

1. “Made in America” Campaigns that Showcase the Story Behind Local Producers

Highlight Local and Domestic Products: With tariffs increasing the cost of imported alcohol, promoting locally made drinks like craft beers, American whiskeys, and regional wines can appeal to customers looking for more affordable or patriotic options. Positioning a bar, restaurant or liquor store as a place that supports local producers and celebrates U.S. craftsmanship can create a strong connection with consumers. For domestic craft beverage producers, this is the time to really promote that you make American made products, offer tariff-free options and support the American economy with jobs and making America less dependent upon foreign food and beverage supplies. Engaging customers with local producers to create a more intimate experience can attract new customers and your “regulars.” People love to know the story behind what they’re drinking and like to experiment with new things. There are many mead, kombucha and cider producers that would love to be featured and attract new drinkers to this category. Flavored malt beverages (spiked sodas, seltzers, lemonades, coffees and iced teas) are still out there as a trendy product similar to RTD cocktails but with lower alcohol content. Customers may not be aware that craft producers offer products in this category as an alternative to typical grocery store options.

Campaign Examples:

“Taste the Local Difference”: Promote a menu featuring exclusively local or domestic alcohol, highlighting the craftsmanship of American-made spirits, wines, and beers. Host pairing dinners that feature locally made products, especially those that are “farm to table” experiences.

“Cheers to American Spirits”: Offer discounts or loyalty points for customers who order/buy American-made products, such as bourbon, craft beer, or local wines. Offer tasting experiences and flights to introduce your customers to new products and suggest domestic alternatives to some of their favorite foreign products. Many people are not familiar with domestic equivalents and would enjoy the opportunity to find a less expensive option.

“Meet the Makers” Series: Feature a new local alcohol producer each month with an event or promotion that introduces customers to the people behind the products. Highlight how they are benefitting from the growing interest in local products due to tariffs on imports. Customers may be proud to use their economic

buying power to support American businesses given all the media coverage about the trade deficits and the US efforts to increase domestic manufacturing and decrease reliance on foreign suppliers.

Behind-the-Scenes Tours: Offer customers the chance to visit a local brewery or distillery, then create a tasting event at your bar that highlights those specific products. Let your customers “meet the chef” or learn some mixology tricks from your bartenders. You can even let the meet the farmers that supply some of your ingredients (bakeries, butchers, farmers, pasta makers, honey producers, and others).

Bourbon and BBQ Night: Feature a bourbon tasting paired with local BBQ, emphasizing the American-made products that are benefiting from tariffs on imports. Feature foods that use craft spirits as an ingredient.

Distillery Takeover: Partner with a local distillery and host an exclusive tasting or cocktail night where you feature their spirits on your menu. The spirits can be used in the menu as well- sauces, marinades and other ways of incorporating beverages into recipes.

Brewery Nights: Set up exclusive tap takeovers or launch new craft beers from local breweries, using the opportunity to educate your customers about the quality and uniqueness of local brews compared to imported options affected by tariffs.

Cider, Kombucha and Mead Focused Nights. These lesser known products are making a big impact on the craft beverage market. Many people are unfamiliar and would enjoy the opportunity to learn more about these options, especially in the current lower alcohol option market trend.

2. Highlight the “Tariff-Free” Experience

Position Domestic and Local Products as the Cost-Effective Choice: With the price of imported alcohol rising, bars can market themselves as places where customers can avoid expensive, imported products and still enjoy high-quality drinks at affordable prices. For bars, your bartenders may enjoy the opportunity to be creative in creating some new cocktail options. You can use the rise in domestic sales and the focus on local products to offer customers special “tariff relief” pricing on domestic drinks. You can even “match” the tariff in the form of a deeper discount – no 10% tariff increase and you match it with another 10% discount.

Campaign Examples:

“Avoid the Tariff—Drink Local!”: Playfully market the concept that customers are avoiding the extra costs of tariffs by drinking domestic alcohol. This can be tied into a happy hour promotion or a loyalty program.

“Tariff-Free Cocktails”: Create a special cocktail menu that uses only domestic spirits, featuring signature cocktails that are cost-effective and taste great. Introduce a new cocktail list that features American-made spirits, showcasing drinks like American Whiskey Old Fashioned.

Host Tasting Events: Organize events centered around local spirits, craft beers, or regional wines. Educate your customers about the uniqueness of domestic products and how tariffs are shaping the market. Many customers don’t know the high quality of domestic craft products or that domestic producers make red wines from the same varietals as European winemakers or spirits from agave (they just can’t call it tequila even if it is the same spirit because the term can only be used if made in a particular part of Mexico). There are many domestic producers of similar products, but they carry a different name. Educate them and let them try them for themselves.

“Tariff Relief Happy Hour”: Offer a discount on drinks made with domestic alcohol, emphasizing the affordability compared to pricier imports due to tariffs.

“Get More for Less”: Run a limited-time promotion where customers get a free small snack with the purchase of an American-made drink (e.g., whiskey or craft beer). Think of Spanish tapas or a “loaded bloody mary” as a concept – small bites that people really find an attractive value-add. The key is to find ones that are economical to make in terms of food and labor costs.

3. Host Educational Seminars or Tastings

Teach Customers About Tariffs and Alcohol: Educating customers on how tariffs affect the alcohol industry can turn a challenge into an opportunity for engagement. Hosting educational seminars or tastings with a focus on how tariffs impact the market can create a unique experience for customers.

Event Examples:

“Tariff Talk & Tasting”: Hold a small seminar where an expert or the bar staff explains how tariffs are affecting alcohol prices and imports, followed by a tasting of both imported and domestic alcohol to compare flavor profiles and quality.

“Global vs. Local” Tasting Challenge: Offer a tasting flight that includes both imported and domestic alcohol, highlighting the differences in price and flavor. Provide a fun, educational experience where customers can vote for their favorites and see the impact of tariffs firsthand.

4. Collaborate on Charitable Initiatives

Create Social Responsibility Campaigns: Given the increased interest in supporting

local businesses during times of economic uncertainty, a social responsibility campaign that ties into the tariff issue can help bars position themselves as community-oriented.

Campaign Examples:

“Cheers for a Cause”: Donate a portion of profits from U.S.-made alcohol sales to a local charity or cause. Highlight how customers are supporting local businesses and community initiatives, which can create positive buzz around the brand.

“Support Local Drinkers”: Create a community event that benefits local producers (e.g., supporting local distilleries or breweries) and market it as a chance for customers to give back while enjoying delicious drinks.

Final Thoughts

Marketing ideas that leverage the tariffs can help increase customer loyalty, educate patrons, and promote local products—all while navigating the challenges created by higher prices on imported alcohol. By positioning themselves as a haven for local, tariff-free beverages and offering unique experiences, alcohol industry small businesses can turn the situation into a marketing win and enhance their brand presence in the community.