Distillers and brewers are worried about how to sell to their next generation of consumers, and there’s good reason for it.

It’s well-documented that Gen Z isn’t drinking alcohol in the same way previous generations have. Some alcohol manufacturers are trying to respond to that trend by introducing exotic flavor combinations and clever marketing campaigns.

But changing your core product to chase trends is expensive, and it may come with a very long timeline to generate a return on your investment, if it ever does. If you’re planning to sell your company, you are probably considering a five- to ten-year timeline (or less). Every business owner planning to sell should focus on their most profitable lines, rather than chasing trends.

Here’s what we know about demographics:

Young customers choosing new products will mature. And their tastes will change. Think about the boomers and Xers who grew up drinking Boone’s Farm wine. They drank it because it was available and cheap; when they started to make money, they switched to more sophisticated brands. In 20 years, we may know where Gen Z’s preferences land, but it’s safe to say that what they’re drinking at 20 won’t be what they’re buying at 45.

Boomers, Gen X, and Millennials make up most of the alcohol market. In the U.S., Gen X and Boomers together account for a very large share of alcohol dollars—roughly 60% of consumer spending, according to 2026 data summarized by Penn State Extension.

Despite years of industry focus on younger drinkers, Gen Z accounted for just 4% of U.S. alcohol sales in 2025, according to data from market research firm Circana. Many members of Gen Z (born between 1997 and 2012) have not yet reached 21, the legal age to purchase alcohol in many states, so that number will rise over the next decade. But Gen X and Baby Boomers accounted for a combined 70% of sales in the same period, while Millennials accounted for 25%.

The older generations are spending on premium brands. Two factors determine how profitable a company is, especially in the alcohol business. One is the volume of sales – how many units are sold. But even more important is the value of each unit sold. The sweet (most profitable) spot for most distillers is the group(s) in their peak earning and spending years. Based on that, Gen X is arguably the strongest combination of income + drinking frequency + willingness to spend.

Boomer drinking rates are declining (age and lifestyle changes will always impact consumption patterns), but they still drink at the highest rate and account for about 30% of alcohol dollars. These two groups are particularly important for premium, experiential, and craft products, as well as wine consumption.  

Large brands with long timelines will experiment with new trends and flavors, since market research shows that brand loyalty developed early in your career as a consumer tends to remain strong, even if the products you choose evolve over time. (Gallo Wineries still sells Boone’s Farm wine, but mostly as a throwback, nostalgic purchase.)

The recommendation is to stay focused on the customers who have the income to spend and have another couple of decades left of peak earning and consumerism. They will help you stay as profitable as possible and maximize your company’s value for a potential buyer.