CraftCo. CEO on the Alcohol Business Outlook

Summary

Bloomberg Businessweek: CraftCo. CEO on the Alcohol Business Outlook

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

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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.

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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.

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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

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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

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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)

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

Transcript

[Vertex Pharmaceuticals Podcast Host]

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[Carol Massar]

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[Tim Stanovec]

Bloomberg Audio Studios Podcasts Radio News.

[Carol Massar]

You're listening to Bloomberg Business Week with Carol Massar and Tim Stanovec on Bloomberg Radio.

[Tim Stanovec]

We've got something fun to talk about.

[Carol Massar]

Well, our Bloomberg Intelligence team is out with a really interesting note today that could add to the woes facing the spirits industry.

[Tim Stanovec]

Oh, so not so fun.

[Carol Massar]

Well, you so yeah, maybe not. Use of weight loss drugs stand a deep in alcohol's demand slump in the US And Europe as moderation and wellness gains trends gained ground. So by 2035, consumption of beer and spirits is expected to drop 20.3% and 19.2% respectively among GLP1 users. That's here in the U.S. this according to an analysis from Bloomberg Intelligence.

[Tim Stanovec]

Yeah, total losses could reach 28.5 billion. Translates to about a 3 to 4% sales drag in the US and 2 to 3% in Europe. There's that going on. The whole alcohol industry globally has had to deal with tariffs coming out of the United States. Just want to mention a quick headline crossing on that. The United States to exempt some Brazilian agricultural goods from 40% tariffs. So that's going on and so we'll see as the President and the administration has been looking at the cost of things, some rollbacks. I'm not quite sure how that will ultimately maybe impact the liquor industry, but we'll be keeping it up.

[Carol Massar]

Well, it's the economic backdrop that informs our conversation with ali Anderson. She's CEO at KraftCo. It's got a portfolio that includes more than two dozen spirits and liqueurs. Think bourbon, gin, rye, ready drink cocktails and more. The company also does co packing for other brands. She joins us from a distillery in Holland, Michigan. Ali, good to have you on the program.

[Tim Stanovec]

Last time.

[Ali Anderson]

Thank you.

[Tim Stanovec]

While we got through the news flow, Kiddo just keeps on coming at us.

[Carol Massar]

We can't guarantee that there won't be more interruptions with more headlines, but that's just the way it goes in a breaking news environment. Time you were on with us, we spent the whole time talking about tariffs and the effect of tariffs on your business. And that's just one element that's a headwind. Other headwinds include changing consumer tastes and how people think about GLP1s and increasingly people taking GLP1s and that leading people to drink less. What is the environment for you out there right now?

[Ali Anderson]

Yeah, I mean, first of all, thank you for having me back. It's good to, good to see you guys and chat with us again. You said it at the top. All of the headlines, they seem pretty bleak. Right. But I think that's, that's what business is today, especially in the spirits industry. So what's the name of the game? You have to pivot. You know, we certainly want to promote as, as much health as we can across all industries, but what we're looking at here is lifestyle shifts. And so the industry has to, has to shift with it. You know, anecdotally, I was out to dinner with a friend a couple weeks ago who was, who was on a. You know, I said, you look great. And he said, I'm cheating. It's a shot. But we enjoyed two cocktails and a lovely meal. So I think you see people making healthy choices when and where they can and what they're actually choosing. What my friend chose that night was quality over quantity. And so those are the pivots and the shifts that we have to make in as well.

[Tim Stanovec]

I'm super like that with chocolate. Like, I just need a little piece of super good chocolate. I don't need a lot and then I'm happy. And so, yeah, same thing with alcohol. No, no, but let's go, let's go there. Because I do think price point is something increasingly. Yes, health, diet, that's certainly an aspect, but price point is certainly increasingly something that we know all consumers are looking at. We saw that play out in the recent elections in some of the states, like the economy does matter, the money that is in or not in your pocketbook. It matters.

[Ali Anderson]

It absolutely does. And you know, I've got, I've got premium brands, I have brands that cross the spectrum. And so what we're seeing is, yeah, our consumers down shifting just a little bit. Sure. But we're also seeing tremendous growth with products that are, you know, over $200. So I think you are seeing a disparity across all of the price tiers. But at the same time, like I said, you're seeing people redefine what premium really means. I think it's becoming maybe less about price point and more about what the purpose driven value is, what the occasion in their life. They're using, they're using alcohol to celebrate with. So I think, you know, 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 all of those things.

[Carol Massar]

In terms of the lineup that you have right now, you said people are choosing quant quality over quantity. Is there a certain, you have a large range of what you do. I mean, dozens of different spirits and alcohols, liqueurs, ready to drink cocktails. Where's the strength?

[Ali Anderson]

It's inconvenience, variety, innovation. I think people don't, what we're seeing is people don't mind spending a little bit more for something that they haven't seen before. Right. And that could be with an rtd. So maybe it's, maybe it's a little more expensive rtd, but it's a flavor combination they haven't quite had before. Or, or maybe it's a really luxury whiskey with a finish or a blending technique in our case, that, that they haven't seen before. So I, again, I think people, we vote with our dollars. Right. And they'll, they'll, they'll consume what they think is new, interesting and what they can get information about what they connect with.

[Tim Stanovec]

So rtd, obviously. Ready to drink. I've had certainly some of those. Hey, you sent over to our team so that we could share with the audience some of the stuff that you guys. I actually have next to, to me. Copper Craft Distillery. Made in the usa, Holland, Michigan. It's straight bourbon whiskey. Tell me about this one. I'm actually gonna be. It's been quite a day. It's been quite a week. It's been quite a year. I'm gonna actually.

[Ali Anderson]

Can I join you? Yes. Can I join you?

[Tim Stanovec]

We're so. Yes, Wait, I'm gonna.

[Carol Massar]

She's at the. You're. You're here in the studio.

[Odoo Representative]

I'm here.

[Ali Anderson]

I'm here in our pack hall's at the distillery. I don't want to.

[Tim Stanovec]

Wait, wait, wait, wait, wait. Oh, there we go. Okay. I didn't want to spill it. I didn't want to spill it. Okay, so tell me, but tell me about this, because it isn't certainly a brand that I think I'm familiar with. But you're right, people are looking. I know when I go to buy a wine, I like to try different things.

[Ali Anderson]

Right, Right. So, you know, we're based out of Holland, Michigan, and you think I get this question all the time. Isn't whiskey just in Kentucky? And the great thing about an American spirit is that it can be in all 50 states. And so for us, we're in Holland, Michigan, on the west side of Michigan, here on the lakeshore. And we create. We've had this brand for many, many years. And I think what you've got is it's a straight bourbon whiskey.

[Tim Stanovec]

I can smell the whiskey sour. That could also be made out of this.

[Carol Massar]

This is finished in rum casks. What does that mean?

[Ali Anderson]

Well, it means we took an already amazing whiskey. I think the one you've got is 8 years old. And we put it in. Oh, I don't have any casks in this room. We put it in a rum cask that used to hold rum and we just let it rest for about a year.

[Carol Massar]

So it takes on a different flavor than something that would be finished in a different type of cask.

[Tim Stanovec]

But I see what you say, like, you don't we. What? This reminds me of my dad who used to make whiskey sours for all of us as kids. And most of the times it was a lot more oranges and cherries in it than. Than whiskey. But you could also just the variety. I feel like the craft industry, even in liqueur, like you just alone, it's just something really nice.

[Ali Anderson]

Right. Like, what did craft used to be? If we look back at beer, we think craft was small batch craft whiskey, small batch. And craft, much like the way we redefine premium craft has evolved too. So like you just said, you know, I've not heard of this before. What is this? And so 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? Can I go visit them? Who are. You know, it's. It's the. That's what Craft is now. It's the process, the technique, the people, the story that you're telling about the whiskey or the spirit, the.

[Carol Massar]

The distribution of this is. Is a question that I have, because at least here in New York City, I don't know how it works in other parts of the world, but in other parts of the country. But you walk into a liquor store, and I've talked to some of these folks in there, and again, it's changes depending on where you live. But.

It'S a challenge to get smaller brands on the shelves, especially with the big brands, the large brands that own a good portion, they come in and say, okay, well, if you want to carry this, you have to carry this. And there's not much power that these small companies have. How do you make sure you get shelf space? And shelf space that's like premium.

[Ali Anderson]

What a great question. Relationships. Like any business, any industry, it really does come down to relationships. And for a small, you know, craft, right. We've got five brands, we cover 42 states, and we're still crafts. What does that mean? We have to show up in markets. You've got to show up at that retailer. You've got to show up with the distributors. Those distributors are still my customers. So it's built on relationships and making sure they know. Just like we connect with our consumers online and tell the stories, make sure they know who we are and that we are a small business, that every single sale matters to us. And much like them, you know, we're. We're just trying to connect with consumers. So I think it's finding that common ground through relationships.

[Tim Stanovec]

Yeah, it always comes down to that. I feel like relationships for so many different industries. Hey, before you go, we've talked about copper craft, and I actually sampled some. But you also shared with our team just to kind of look at kind of the variety and different places you go. Elderflower. I'm a little obsessed with elderflower right now. And you've got Thatcher's organic.

[Carol Massar]

Artisanal.

[Tim Stanovec]

Artisanal, yeah.

[Carol Massar]

You got a move to Brooklyn.

[Tim Stanovec]

Artesian. Artesian.

[Carol Massar]

Oh, it's Artesian. Okay.

[Tim Stanovec]

Yeah, yeah. That's why. Sorry, sorry, I couldn't read anything. I'm not looking at word, but I'm looking off my. Because we took a picture. You've got Fox and. Is it Odeni?

[Ali Anderson]

Odin.

[Tim Stanovec]

Odin. Okay, forgive me. Sorry. I'm looking at a small picture, but tell us a little bit about some of the other ones. And then Thatcher's vodka. It's not because I've been drinking. I just Couldn't read the picture because I took a picture so I could read on air.

[Ali Anderson]

Go ahead, I'll join you. I'll join you. Here's at the end here. No, it's Thatcher's organic. Right. It's, you know, we think about spirits. Does it really matter? Yeah, sure does. Something like that is very culinary forward. So you mentioned elderflower. I bet we're drinking the heck out of Hugo spritzes right now with that elderflower. Totally amazing, right?

[Tim Stanovec]

Yes. Yeah.

[Ali Anderson]

And again, that's a, that's a way to enjoy maybe a little bit of lower proof but still, still feel great and be festive and all of those things. So, you know, then we've got like Fox and Odin is, is luxury whiskey and that's beautiful. We've got a beautiful double oak that was just up for. We had two of the top five finalists for the best special barrel finished whiskeys in the world a couple Sundays ago in San Francisco. So, you know, we're super, we're craft, we're competing against all these big guys. But because of what we're able to do with our size, with our expertise, you know, we can deliver some really luxury things to the market as well.

[Tim Stanovec]

And we do really, really cool stuff. I think we have to run next time. Come join us. But it was really nice. Cheers to drink with you.

[Carol Massar]

Four, four more bottles of stuff that you can sample, Carol, in the next five minutes.

[Tim Stanovec]

Happy holidays. And I know we'll be, we'll catch up again, but really, really lovely to check in with you once again. Ali Anderson. She is the CEO of craft company Portfolio that includes more than two dozen spirits and liquors or liqueurs. Joining us from a distillery in Holland, Michael.

[Vertex Pharmaceuticals Podcast Host]

When patients have a disease and the cause is known, it usually ends up needing a specific solution. On the podcast targeting the toughest diseases, we explore the innovative tools, methods and unique philosophy Vertex Pharmaceuticals is using to search for treatments for some of humanity's most challenging diseases. Subscribe today wherever you listen to podcasts.

[Mastercard Representative]

With the B2B card payment landscape evolving, large corporations face pressure as buyers increasingly demand to pay invoices by virtual card. For merchant acquiring businesses like yours, this is a high growth opportunity waiting to be unlocked. With Mastercard's adaptive approach to B2B acceptance, you can enhance your infrastructure for high value payments and meet your customers unique needs. MasterCard offers solutions and support for every step of the supplier lifecycle, helping you deepen merchant relationships. Start fast, grow strategically and scale at your pace. With a modular toolkit, you can flexibly deploy. Discover [e-mail] commercial acceptance running a business.

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[Mastercard Representative]

The B2B card payment landscape evolving, large corporations face pressure as buyers increasingly demand to pay invoices by virtual card. For merchant acquiring businesses like yours, this is a high growth opportunity waiting to be unlocked. With Mastercard's adaptive approach to B2B acceptance, you can enhance your infrastructure for high value payments and meet your customers unique needs. MasterCard offers solutions and support for every step of the supplier lifecycle, helping you deepen merchant relationships. Start fast, grow strategically and scale at your pace. With a modular toolkit you can flexibly deploy. Discover [e-mail] CommercialAcceptance Amazon Five Star Theater.

[Tim Stanovec]

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[Carol Massar]

Janice Torres here and I'm Austin Hankwitz. We host the podcast Mind the Business Small Business Success Stories produced by Ruby Studio in partnership with Intuit quickbook Bucks.

[Tim Stanovec]

We'Re back for season four to talk to some incredible small business owners.

[Carol Massar]

The big thing about working at tech is that it's ever evolving, ever changing. Everyone's a rookie. That's how fast the industry is changing. So what I'm really excited about is to be part of that change. So listen on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.