North Carolina’s Liquor Market Shifts: Why Even Tito’s Can’t Ignore the Rise of Ready-to-Drink
For years, North Carolina’s liquor shelves have been dominated by one brand: Tito’s Handmade Vodka. Nearly 300,000 bottles – both 750ml and 1.75L sizes – flew off the shelves each month. But a subtle yet significant shift is underway. While Tito’s remains king, overall alcohol sales are dipping, and a new category – ready-to-drink (RTD) canned cocktails – is surging, signaling a potential long-term change in how North Carolinians consume their spirits.
The Tito’s Reign and the First Cracks
Tito’s success isn’t a mystery. Its gluten-free formulation and association with popular brunch cocktails like the Bloody Mary have cemented its place in the state’s drinking culture. It outsells its nearest competitor, Smirnoff, by a factor of over four. However, recent data from the NC Alcohol Beverage Commission (ABC) reveals a 3% decrease in Tito’s handle sales and a 9% drop in fifth (750ml) sales from 2024 to 2025. This isn’t necessarily a sign of Tito’s losing its core fanbase, but rather a symptom of broader trends impacting the entire industry.
The RTD Revolution: High Noon and Surfside Lead the Charge
The biggest story isn’t Tito’s slight decline, but the explosive growth of ready-to-drink cocktails. Brands like High Noon Vodka Seltzers and Surfside Cocktails are experiencing phenomenal growth. Stateside Surfside sales increased eightfold, and High Noon Fiesta Cocktails doubled in the same period. This surge is fueled by a consumer desire for convenience, lower calorie options, and increasingly sophisticated flavor profiles.
What’s Driving the RTD Appeal?
High Noon positions itself as a healthier alternative, emphasizing “real fruit juice” and a low-calorie count. Surfside doubles down on the health angle, touting “real tea, 2 grams of sugar, and 0 bubbles,” even boasting a “Kosher Rabbi approved” designation. This marketing resonates with a growing segment of consumers who are mindful of what they consume, without necessarily wanting to abstain from alcohol altogether. The convenience factor is also huge – a pre-mixed cocktail in a can is perfect for on-the-go consumption or casual gatherings.
Beyond the Can: A Broader Sales Slowdown
The rise of RTDs isn’t happening in a vacuum. Overall alcohol sales in North Carolina experienced a .26% decrease in Fiscal Year 2025 – the first year-over-year decline since the ABC Commission began tracking data in 2009. While retail sales (alcohol purchased for home consumption) dipped by .23%, mixed beverage sales (sales to bars and restaurants) actually increased by .63%, indicating a rebound in the hospitality sector following the pandemic-era shift towards at-home drinking.
The State’s Role and Where the Money Goes
North Carolina’s unique control over liquor sales through the ABC system provides valuable insights into these trends. The state doesn’t just regulate distribution; it also profits from it. In FY 2025, the NC ABC distributed over $15.2 million to law enforcement, $19.2 million to alcohol education programs, and a substantial $113 million to municipal counties. This demonstrates the significant economic impact of alcohol sales and the state’s commitment to responsible consumption.
Looking Ahead: What Does This Mean for the Future?
The data suggests a few key trends. First, convenience is king. Consumers are increasingly opting for pre-mixed options that require minimal effort. Second, health-conscious choices are gaining traction. Brands that emphasize lower sugar content, natural ingredients, and transparent labeling are likely to thrive. Finally, the rebound in mixed beverage sales suggests a renewed interest in the social aspect of drinking, indicating that bars and restaurants will continue to play a vital role in the industry. The future of North Carolina’s liquor market won’t be solely about vodka dominance; it will be about adapting to evolving consumer preferences and embracing innovation. The question now is whether established brands like Tito’s will successfully diversify their offerings to meet this changing landscape, or if the RTD category will continue to steal market share.
What are your predictions for the future of ready-to-drink cocktails in North Carolina? Share your thoughts in the comments below!
