By Emma Rumney and Waylon Cunningham
LONDON/NEW YORK, March 30 (Reuters) - Certain champagne and cremant brands that were once wine menu staples are on the chopping block at restaurants and bars owned by New York-based Kent Hospitality Group, says wine director Kristen Goceljak. Tariffs have made them too expensive.
U.S. firms like hers are moving to rewrite menus or restock retail shelves with cheaper options as a result of tariffs imposed on imports from alcohol-producing regions like Europe since
last year, five U.S. restaurants, retailers or wine and spirits wholesalers interviewed by Reuters said.
The tariff rate for many European goods was set at 15% last August under a U.S.-EU trade deal. Then, in February, a suite of U.S. President Donald Trump's tariffs, including on Europe, was overturned by the U.S. Supreme Court. These were quickly replaced with new levies that meant many European imports would incur at least a 10% surcharge.
Goceljak, responsible for buying wines to serve across Kent Hospitality Group's fine dining restaurants, bars and members' clubs, balked in February when she saw that one champagne she purchased to serve at private events and which had been priced at $48 per bottle had risen by around $5 a bottle at her wholesaler.
A cremant brand from the same wholesaler had risen by around $3 per bottle, she said, adding that a growing number of other suppliers had notified her of price increases of as much as 20% this year.
Goceljak said she planned to switch out brands of cremant or champagne, which can only be made in France, as well as other long-standing labels, to cheaper alternatives.
"It's just too expensive," she said.
PRICE HIKES HIT WINE FIRST
U.S. President Donald Trump's sweeping tariff regime laid out in April 2025 had an immediate impact on vast alcohol shipments to the United States. European exports of alcohol like wines, spirits and aperitifs to the U.S. alone were worth some 9 billion euros ($10.4 billion) in 2024, according to Eurostat data.
But many producers staved off price increases when U.S. alcohol sales are already suffering from affordability issues, the rise of alternatives like cannabis drinks and shifting drinking habits.
They shipped stock in bulk ahead of time to beat the levies, or took the hit themselves to keep prices steady, especially during the all-important holiday season from October-December when alcohol enjoys stronger sales. But these strategies are starting to run their course.
"The pressure to pass through costs is mounting," said Lance Emerson, SVP of Commercial Finance at Republic National Distributing Company, one of the top U.S. wholesalers, adding the shift was more pronounced in wine, whereas spirits makers have greater ability to absorb tariffs in their margins.
Retail shelf prices on some imported wine brands already climbed 5-12% in 2025, and more pronounced increases from further suppliers were expected in 2026, he said.
Retailers or restaurants were either already adjusting their menus or inventories as a result, or were expected to increasingly make such changes this year, said Emerson, as well as Zach Poelma, SVP of Commercial Intelligence at another wholesaler, Southern Glazer's Wine and Spirits.
Emerson said restaurants are changing cocktail and wine lists towards lower-cost options, while retailers are cutting back on the range of products they sell and balancing imported options with domestic alternatives. Poelma said restaurants, bars and other venues may also increasingly swap out imported wines for domestic ones.
SOME U.S. BRANDS BENEFIT
Partly as a result of price increases, imported wine sales volumes were down around 8% between October and January, while domestic wines were down only 3% over the same period, SGWS' Poelma said, with similar trends throughout February.
Francis Creighton, CEO of trade body Wine & Spirits Wholesalers of America, said its members were helping customers refresh their wine lists and cocktail programs, including by offering domestic alternatives.
California wine brand Josh Cellars saw sales rise 8.3% in the 13 weeks to mid-March, while the wine category was down 3.6% - a performance that Dan Kleinman, chief marketing officer at brand owner Deutsch Family Wine & Spirits, at least partly puts down to tariffs on imported rivals.
Meanwhile, Deutsch Family Wines has kept its prices on Josh Cellars as well as imported brands in its portfolio steady.
"The sweet spot in America is a $10-$12 glass of wine," he said, adding if you edge above that you get knocked out of menus because many consumers don't want to pay. "They want you at those certain prices."
Josh Cellars Cabernet sells at around $10 a glass.
Wife and the Somm, a restaurant in Los Angeles, has swapped out some Old World European wines on its 'by the glass' menu for domestic brands, owners Chris and Christy Lucchese said.
This year, prices of European artisanal cheeses and meats they stocked also jumped dramatically.
"We have had to segue our entire cheese and charcuterie program to all domestic," they said. In some cases, however, they still pay more for U.S. versions than they used to for their European imports.
($1 = 0.8679 euros)
(Reporting by Emma Rumney; editing by Lisa Jucca)
