On-Premise, Off-Premise, and E-Commerce
(Excluding Conglomerate-Owned “Craft” Brands)
Published by Corning & Company | August 2025
Executive Summary
For small, independent craft spirits producers—those making ≤5,258 9L cases annually and not owned by large suppliers—the path to market is both full of opportunity and constrained by structural barriers.
The latest Craft Spirits Data Project shows that nearly half of small-craft sales occur directly at the distillery, while almost all remaining volume is sold in-state. Cross-state distribution is minimal, and e-commerce—despite consumer interest—is hampered by regulation.
Corning & Company is uniquely positioned to help these brands:
- Maximize their high-value tasting room channel
- Strengthen home-state wholesale penetration
- Build compliant e-commerce strategies
- Explore selective, high-return multi-state growth
Through our Integrated Route to Market (IRM) and end-to-end services, we reduce complexity, expand reach, and allow brand owners to focus on the consumer experience.
U.S. Craft Spirits Market Overview
- Total Independent Craft Spirits (all size tiers):
- 13.5M 9L cases / $7.8B in 2023
- –3.6% volume / –1.1% value vs. 2022
- Distribution: 25.3% at DSP, 22.8% in-state (outside premises), 51.9% other states, 1.3% export
- Small Craft Producers Only (≤5,258 9L cases/year):
- 1.4M 9L cases in 2023
- Channel mix:
- 47.7% Direct at the Distillery (DSP)
- 45.4% In-State Wholesale (outside DSP)
- 6.9% Other U.S. States
- ~0.1% Export
Where Corning & Company Helps:
We specialize in turning these numbers into action. If nearly 50% of your sales are already coming from your distillery, we can help you scale the experience, capture more premium price points, and convert tasting room visitors into long-term customers—while also growing your footprint in high-value home-state retail and select out-of-state markets.
Channel Performance & Corning & Company Solutions
1. On-Premise (Bars & Restaurants)
- On-premise spirits have returned to pre-pandemic share; premium tiers are resilient and consumers are seeking unique, small-batch offerings.
- For small craft, on-premise listings often rely on local relationships—but scaling those relationships across even a single state can be challenging.
How Corning & Company Helps:
We provide the sales infrastructure and distributor relationships to secure on-premise placements that work as brand showcases. Through our IRM model, we can represent your product to targeted accounts and ensure on-premise exposure translates into off-premise pull-through.
2. Off-Premise (Retail)
- Off-premise accounts for the majority of spirits sales in the U.S. (~$21.1B in 2023).
- Most small craft retail sales are local, concentrated in liquor stores, regional chains, and specialty grocers.
How Corning & Company Helps:
We understand the retail shelf as brand real estate. Our platform manages packaging, logistics, and warehousing so you can consistently meet retailer demand. We also support category management, in-store activation, and distributor engagement to keep your brand visible and competitive.
3. E-Commerce
- Alcohol e-commerce is ~4–4.5% of total U.S. bev-alc value; spirits make up ~37% of that.
- True DTC shipping for spirits is legal in only 7 states + D.C., limiting reach.
- Retailer-owned websites and delivery platforms dominate online spirits sales.
How Corning & Company Helps:
We help brands navigate compliance, integrate with retailer-linked e-commerce channels, and deploy hyper-localized marketing campaigns tied to zip codes where your product is available. When laws change, we can quickly add new DTC shipping states to your plan.
Strategic Takeaways & Corning & Company Actions
1. Maximize Distillery Sales
- Opportunity: 47.7% of small-craft sales come from DSPs.
- Corning & Company Solution: We provide visitor experience optimization, packaging solutions, and direct marketing strategies to increase per-visitor spend and repeat engagement.
2. Own Your Home State
- Opportunity: 45.4% of volume is sold in-state outside the DSP.
- Corning & Company Solution: We build customized wholesale programs that target the right retail and on-premise accounts, using our existing infrastructure to manage distribution, sales, and compliance.
3. Treat E-Commerce as a Retail Amplifier
- Opportunity: E-commerce growth is tied to retailer integration, not national DTC.
- Corning & Company Solution: We create buy-now retailer syndication, manage retailer partnerships, and run geo-targeted campaigns to drive immediate conversion.
4. Leverage Premium Positioning
- Opportunity: Premium and ultra-premium segments are the most resilient.
- Corning & Company Solution: Our branding, design, and market activation services help ensure your craft story is supported by packaging, pricing, and placement that command premium value.
About Corning & Company
Corning & Company is an industrial services platform for craft spirits brands, offering production, packaging, warehousing, marketing, sales, and distribution solutions. Our mission is to remove operational complexity so brand owners can focus on building authentic consumer relationships and sustainable growth.