Mitigating Tariff Turmoil

How Double Cross Vodka is Navigating Tariff Turmoil in the Spirits Industry

The U.S. spirits industry is once again facing a wave of uncertainty. With President Trump’s sweeping “Liberation Day” tariffs bouncing between court rulings and appeals, beverage alcohol companies are being forced to rethink everything from pricing strategy to supply chain management to expansion planning.

Just last week, the U.S. Court of International Trade temporarily blocked the majority of tariffs—only for a U.S. appeals court to reinstate them the very next day while legal proceedings continue. This back-and-forth has created a volatile environment where no one can predict what the next quarter will look like.

Consumer Pressure on Pricing

One of the biggest challenges comes down to consumer tolerance for higher prices. According to new data from consumer insights platform Zappi:

• 61% of consumers would stop buying their favorite alcohol brand if prices rose by 10%.

• Only 15% of consumers say they would stay loyal to their brand at any price.

For spirits companies, this means there is very little room for error when it comes to pricing. Pass along too much of the tariff cost, and you risk losing customers. Absorb too much, and you risk eroding margins.

Challenges Beyond Tariffs

Tariffs are only one layer of pressure. The industry is also navigating:

• Rising Logistics Costs – Higher freight, port, and warehousing expenses add to volatility.

• Currency Fluctuations – A strong dollar can make imported brands more expensive and erode margins.

• Retail & Distributor Consolidation – Larger buyers are demanding sharper pricing and stronger support.

• Shifting Consumer Behavior – Consumers are more willing to trade down or switch brands when prices rise.

• Inventory Risk – Stockpiling to hedge against tariffs can tie up capital and add carrying costs.

The Double Cross Vodka Approach

At Double Cross Vodka, we’ve chosen to meet this uncertainty with strategy and discipline. Our response is rooted in four pillars:

• Pricing Discipline
  We remain committed to our ultra-premium positioning, but we’re also carefully analyzing consumer price sensitivity to avoid crossing thresholds that could disrupt loyalty.

• Supply Chain Flexibility
  By working closely with partners, we’re building resilience into our supply chain—sourcing efficiently, reducing exposure to sudden tariff shocks, and managing freight and warehousing strategically.

• Financial & Operational Hedging
  We are actively modeling scenarios around currency swings, inventory management, and distributor consolidation to minimize risks and protect cash flow.

• Growth Without Disruption
  Instead of slowing down, we’re sharpening our go-to-market execution in key states, ensuring that Double Cross is visible, accessible, and well-supported at retail and on-premise accounts.

Why Tariff Volatility Can Be an Advantage

While tariffs create real challenges, they also present an opportunity. The brands that thrive in this environment will be those that:

• Stay agile in operations and decision-making.

• Communicate transparently with trade partners and consumers.

• Protect brand equity by focusing on long-term momentum rather than short-term shocks.

Final Takeaway

The spirits industry is entering a new era defined by volatility and resilience. Tariffs may come and go, but consumer expectations, brand equity, and operational excellence remain constant. At Double Cross Vodka, we are committed to navigating this landscape with clarity and strength—ensuring that our brand continues to grow, no matter how unpredictable the trade environment becomes.