Bloomberg Businessweek: CraftCo. CEO on the Alcohol Business Outlook

Date: December 4, 2025
Hosts: Carol Massar & Tim Stanovec
Guest: Ali Anderson, CEO of CraftCo.

Episode Overview

This episode dives into the evolving landscape of the spirits industry as it faces a series of headwinds: from changing consumer behaviors influenced by wellness trends and weight loss drugs, to pricing pressures and the ongoing challenge of getting smaller brands on shelves. Ali Anderson, CEO of CraftCo.—a portfolio company with more than two dozen spirits and liqueur brands—joins the hosts from her Michigan distillery to discuss the company's strategy in this complex environment.

Key Discussion Points & Insights

1. Alcohol Demand in Decline

• Wellness and Moderation Trends:
  • The hosts discuss a new Bloomberg Intelligence note showing that use of GLP-1 weight-loss drugs, as well as broader wellness trends, are accelerating a decline in alcohol consumption in the US and Europe.
  • "By 2035, consumption of beer and spirits is expected to drop 20.3% and 19.2% respectively among GLP1 users." (Carol Massar, 02:00)
• Industry Financial Impact:
  • These shifts may lead to losses of up to $28.5 billion globally, translating to a 3–4% sales drag in the US market and 2–3% in Europe. (Tim Stanovec, 02:24)

2. Business Adaptation and Consumer Pivot

• Ali Anderson’s Viewpoint:
  • Anderson acknowledges the tough landscape but emphasizes adaptation:
    “You have to pivot...the industry has to shift with [lifestyle shifts].” (Ali Anderson, 03:48)
• Quality over Quantity:
  • As people drink less, there's a tendency to choose better products and savor the experience. Anderson shares a personal anecdote:
    "What my friend chose that night was quality over quantity. And so those are the pivots and the shifts that we have to make as well." (Ali Anderson, 04:02)

3. The Importance of Price and Value

• Consumer Price Sensitivity:
  • As economic pressures mount, consumers are thinking hard about every purchase. Price matters, but so does perceived value.
  • Anderson notes, "I've got premium brands...we're also seeing tremendous growth with products that are, you know, over $200." (Ali Anderson, 05:15)
  • She observes a shift in the definition of "premium," now less focused on price point and more on transparency, values, and occasion.

4. Innovation in the Portfolio

• Consumer Demand for Novelty:
  • Anderson highlights how new, innovative products and flavors are gaining traction.
    "People don't mind spending a little bit more for something that they haven't seen before." (Ali Anderson, 06:22)
• Ready-to-Drink (RTD) and Craft Spirits:
  • The rise of high-quality, unique RTDs (ready-to-drink cocktails) and adventurous cask-finished whiskeys, such as their Copper Craft bourbon finished in rum casks, captures consumer interest.

5. Redefining "Craft" and "Premium"

• Broader Notion of Craft:
  • Craft isn’t only about batch size anymore but encompasses transparency, story, and visitor experience.
  • “Craft is now evolving to be...what is that experience I can get? Who are the people that make it? How transparent are they about what they're doing?” (Ali Anderson, 09:01)

6. Distribution Challenges for Small Brands

• Competing with Giants:
  • It's challenging for craft brands to secure premium shelf space against dominant brands.
  • Anderson points to the importance of relationships:
    "It's built on relationships...making sure [retailers, distributors] know who we are and that we are a small business, that every single sale matters to us." (Ali Anderson, 10:10)

7. Spotlight on Specific CraftCo. Products

• Copper Craft Distillery Bourbon:
  • Michigan-based, aged for eight years, finished in rum casks for added complexity.
  • Discussion about how regional spirits break the Kentucky whiskey stereotype.
• Thatcher’s Organic Elderflower Liqueur:
  • Tim Stanovec admits an “obsession” with elderflower, noting its culinary versatility and role in trending cocktails like the Hugo Spritz.
• Fox and Odin Luxury Whiskey:
  • Recently recognized in global competitions for its double oak finishing.

Notable Quotes & Memorable Moments

• On Consumer Shifts:
  “At the end of the day, people want transparency. They want transparency in price, they want transparency in how we source, how we produce, how we give back..."
  — Ali Anderson, 05:55

• On Craft’s New Identity:
  "Craft, much like the way we redefine premium, has evolved too...it's the process, the technique, the people, the story that you're telling about the whiskey or the spirit."
  — Ali Anderson, 09:09

• On Winning as a Small Producer:
  "We've had two of the top five finalists for the best special barrel finished whiskeys in the world...we're craft, we're competing against all these big guys."
  — Ali Anderson, 12:21

• Playful On-Air Tasting:
  (After Tim mentions opening a bottle)
  "Can I join you? Yes. Can I join you?"
  — Ali Anderson, 07:21

Noteworthy Timestamps

• Alcohol trend statistics / industry backdrop: 02:00–03:01
• Anderson on adaptation and quality over quantity: 03:48–04:41
• Discussion on pricing, premiumization, and value: 05:15–06:04
• Consumer demand for new experiences / innovations: 06:22–06:59
• Product spotlight: Copper Craft bourbon, RTDs: 07:48–08:37
• Redefining craft and premium: 09:01–09:32
• Distribution/relationship challenges: 09:52–10:52
• Product spotlight: Elderflower liqueur / Fox and Odin whiskey: 11:16–12:38

Episode Tone & Takeaways

The conversation is upbeat and candid, mixing genuine concern about industry challenges with optimism regarding innovation, consumer engagement, and the resilience of craft producers. Anderson’s perspective is pragmatic and hopeful, focusing on authentic connections—both with consumers and distributors—to keep craft spirits competitive.

Final toast:
"Cheers to drink with you." — Tim Stanovec (12:38)

This summary encapsulates the major themes and discussions, offering a comprehensive guide to the episode for those who missed it.