BY COMFORT OGBONNAA
Certain champagne and crémant brands that were once staples on wine menus are now being removed from restaurants and bars operated by New York-based Kent Hospitality Group as rising tariffs make them too expensive to keep in regular rotation.
Kristen Goceljak, the group’s wine director, said the company has begun reviewing its wine selections and replacing some European labels with more affordable alternatives. She oversees the purchasing of wines served across the company’s restaurants, bars, and members-only clubs, and the recent price increases have forced her team to reconsider long-standing menu favorites.
Many businesses across the United States are now adjusting their menus or retail inventories after tariffs were imposed on imported goods from alcohol-producing regions such as Europe. Several U.S. restaurants, retailers, and wine and spirits wholesalers say the levies have significantly raised the cost of imported wines and related products.
The tariff situation has shifted several times in the past year. Last August, the United States and the European Union reached a trade agreement that placed a 15% tariff on many European goods. Earlier this year, however, a group of tariffs introduced by U.S. President Donald Trump, including measures affecting European imports, was overturned by the U.S. Supreme Court. Soon after, new tariffs were introduced, resulting in many European products facing at least a 10% surcharge.
For businesses that rely heavily on imported wines, even relatively small price increases can make a noticeable difference. Goceljak said she first noticed the impact in February when one champagne she regularly purchases for private events rose from about $48 per bottle to roughly $53 through her wholesaler.
A crémant brand from the same distributor also increased by around $3 per bottle. She added that several suppliers have notified her of price hikes this year that could reach as much as 20%.
Because champagne and crémant are protected regional products that can only be produced in France, replacing them with cheaper versions from the same region is not always possible. Instead, Goceljak said she plans to swap out some of those wines and other established European labels for more affordable alternatives from different regions.
She said the decision ultimately comes down to affordability for customers and the ability of restaurants to maintain competitive pricing. If the cost of a bottle rises too much, restaurants often have little choice but to remove it from their wine lists.
The pressure from tariffs is being felt across the broader alcohol industry. The United States is one of the largest export markets for European wines, spirits, and aperitifs. According to data from Eurostat, European alcohol exports to the United States were worth about 9 billion euros, or roughly $10.4 billion, in 2024.
When tariffs were first introduced, many producers and distributors attempted to soften the impact by absorbing some of the additional costs themselves or by shipping large volumes of inventory to the United States before the levies took effect.
These strategies helped keep prices relatively stable during the critical holiday season between October and December, when alcohol sales typically increase. However, those buffers are beginning to fade as companies run through their pre-tariff inventories.
Industry experts say the pressure to pass rising costs on to buyers is increasing. Lance Emerson, senior vice president of commercial finance at Republic National Distributing Company, one of the largest alcohol wholesalers in the United States, said the industry is beginning to feel the full impact of the tariffs.
According to Emerson, the cost increases are especially noticeable in the wine category. Spirits producers generally have higher profit margins, which allows them to absorb some of the additional tariff costs without immediately raising prices.
Retail prices for some imported wine brands have already risen between 5% and 12% during 2025. Emerson said further increases are expected in 2026 as more suppliers adjust their pricing to reflect the higher import costs.
As a result, both retailers and restaurants are increasingly modifying their offerings. Some restaurants are revising cocktail and wine lists to include more affordable selections, while retailers are narrowing the variety of imported wines they stock and balancing them with domestic alternatives.
Zach Poelma, senior vice president of commercial intelligence at Southern Glazer’s Wine and Spirits, another major distributor, said many establishments are also beginning to replace imported wines with American-made products to keep prices manageable for customers.
In some cases, the shift is already visible in sales data. Imported wine sales volumes dropped about 8% between October and January, while domestic wine sales declined only about 3% during the same period, according to data from Southern Glazer’s.
Industry groups say they are helping restaurants and retailers adapt to the changing market. Francis Creighton, chief executive of the Wine & Spirits Wholesalers of America, said distributors are working with clients to refresh wine lists and cocktail programs, often recommending American-produced alternatives.
Some U.S. wine brands have already benefited from the shift. California-based Josh Cellars saw its sales rise by 8.3% during the 13 weeks leading up to mid-March, even as the broader wine category declined by about 3.6%.
Dan Kleinman, chief marketing officer at Deutsch Family Wine & Spirits, which owns the Josh Cellars brand, said tariffs on imported competitors have likely contributed to the brand’s stronger performance.
Despite the broader price pressures, the company has chosen to keep prices steady on both its domestic wines and the imported labels within its portfolio.
Kleinman said maintaining a certain price point is critical in the U.S. restaurant market. Many establishments aim to keep a glass of wine within a range of about $10 to $12, because once prices climb significantly above that level, consumers often become reluctant to order it.
Josh Cellars Cabernet Sauvignon, for example, typically sells for around $10 per glass, placing it within what many restaurants consider the most attractive pricing range for customers.
Restaurants in other parts of the country are making similar adjustments. At Wife and the Somm, a restaurant in Los Angeles, owners Chris and Christy Lucchese said they have replaced some European wines on their “by the glass” menu with domestic options to control costs.
The tariffs have also affected other imported food items used in their restaurant. Prices for European artisanal cheeses and cured meats have risen sharply this year, prompting the owners to completely redesign their cheese and charcuterie offerings.
They said their menu now features entirely domestic cheeses and meats, although in some cases the American versions still cost more than the European imports they previously purchased.
As tariffs continue to reshape the market, many restaurants and retailers say they will keep adjusting their product selections in order to maintain affordable pricing while adapting to the shifting economics of the global wine trade.
Original article
Comments