At a time when the U.S. spirits industry already faces economic slowdown at home, the threat of renewed European Union tariffs is further rattling the industry.
With American distillers already having suffered through damaging tariffs during the first Trump presidency, this next round is sending shocks of panic to beverage alcohol companies across the nation.
Cory Knopp, vice president of sales, GoSpotCheck, says tariffs are driving rapid shifts in shelf care, pricing and inventory management for beverage alcohol brands.
“Any effective pricing strategy starts with visibility into what’s happening at the store level so brands can understand trends, elasticity and category performance,” he notes. “The industry is bracing for a period of potential volatility and disruption, and much of it is out of their control.”
If additional costs are passed directly to the consumer, brands can expect the pricing on menus and on shelves to be the first to be impacted, since bar owners and store managers adjust those price points. But how can suppliers and distributors keep up with all these changes?
Knopp suggests utilizing the power of AI.
AI Aids in Tariff Disruptions
AI-powered image recognition is helping field teams scan images from their phone to instantly capture and analyze retail data in real time. The tech lets suppliers instantly track product availability, spot shelf share changes and adjust product mixes to defend or grow market share. It also helps recalibrate pricing strategies and identify inventory gaps before they escalate.
“Sudden tariff changes can lead to rapid shifts in shelf share by category, supplier and brand, making it critical for field teams to quickly capture and analyze retail execution—especially in independent accounts with limited visibility,” Knopp says.
Since tariffs can also directly affect pricing, suppliers and distributors use AI image recognition to adjust wholesale models so they can stay competitive without sacrificing margin, according to Knopp.
“For on-shelf availability, these disruptions can cause sudden product removals, inventory imbalances and gaps in depletion data—challenges that can have an even greater financial impact than traditional recalls,” he warns.
AI-Provided Insights
Beverage brands can not only gather a host of insights from in-store execution data, but they can also use that data to track trends over time across regions and districts, and combine it with their depletion data to get a full view of performance across an entire portfolio.
“Scanning shelves and coolers with AI can deliver granular, SKU-level insights into shelf share, product placement, assortment, pricing and planogram compliance, and out-of-stocks,” says Knopp. “The great thing about a mobile solution that delivers these insights is that reps get that information immediately while they’re still at the account, so they can fix issues with the display or notify the retailer if something is out of compliance.”
All of that data is then aggregated into an easy, visual business intelligence dashboard that leaders can use to track performance over time and across regions and categories. When brands use this in tandem with sales and consumer data, Knopp says it allows them to make better data-driven decisions.
Adjusting Sales Strategies
For suppliers and distributors to act on AI-generated data, Knopp says it’s crucial for that data to be available as soon as possible and delivered in a format that’s intuitive.
“Many image recognition providers struggle to provide insights at a speed that allows brands to act on them, which is one of the biggest challenges facing the industry today—and this is especially true when it comes to tariffs and a more disruptive climate than is usual,” he says.
A lot of it comes down to where brands know there is consistently an opportunity for growth and improvement.
“On-premise menus, for example, present a prime opportunity for suppliers and distributors to seize share and keep it for a longer period than off-premise placements, since those menus are usually set once a quarter,” Knopp says.
Having an image recognition solution that recognizes menu placement and leading items immediately allows brands to grab more share and preserve it in the long run.
Beverage Brands Evolving with AI
There are many ways AI is evolving to support beverage brands even further. Knopp notes that one of the most promising innovations is the growth of AI Agents.
“These allow teams to take image recognition one step further beyond data analysis and add a layer of support for specific actions to take next,” he says.
Just this past month, GoSpotCheck developed a new AI Agent tool, which allows teams to work with the AI while at an account. For example, the AI Agent can determine whether a certain product or brand qualifies for a discount based on the app’s shelf share calculations, which helps teams ensure contract compliance.
“This is a perfect example of how AI is growing within the beverage industry to augment human capabilities and accelerate growth, not replace it,” says Knopp.
