Fresh local produce. An impressive selection of cheeses. A tempting olive bar. A delightful variety of potato salads. Local wines. A vast assortment of beers. And now, an eye-catching four-foot display showcasing nonalcoholic wines and spirits.

“The most common request we receive is for wines with no or low alcohol content,” explained Josh Kirchhoff, the corporate wine and liquor coordinator for Oliver’s Market. “Sales have doubled compared to last year. This is clearly the trend right now.”

Oliver’s Markets, a cherished independent grocery chain with four locations in Sonoma County, is well-known for its outstanding selection of food and drinks.

Throughout his five years at the company, Kirchhoff has been closely observing the changing preferences in alcoholic beverages among customers as national trends resonate through the aisles.

In recent times, notable trends have emerged, including a rising interest in low and no-alcohol wines, canned cocktails, and Sauvignon Blanc, along with a shift towards more affordable wine options.

“The demand for nonalcoholic beverages has been remarkably robust, particularly among younger consumers,” he remarked. “The improvement in quality within this category continues to attract new customers.”

At present, Oliver’s offers approximately 75 different nonalcoholic wines, beers, and spirits, with new products being added on a weekly basis.

“As long as the trend for nonalcoholic beverages persists, we will keep them available for our customers,” Kirchhoff stated.

As the market is flooded with beverage alternatives and wine consumption declines across the United States, Kirchhoff has needed to discover innovative methods to attract Oliver’s customers to alcoholic wines.

In September, he kicked off a Varietal of the Month initiative, showcasing five local wines at varying price points. The first spotlighted wine was Sauvignon Blanc, which took over the title of the store’s bestselling white varietal from Chardonnay last year.

Kirchhoff noted that the promotion was “wildly successful,” resulting in a 25% increase in Sauvignon Blanc sales compared to last September.

In spite of declining U.S. wine sales, Sauvignon Blanc has emerged as a shining success story, both on a national scale and at Oliver’s. According to May 2024 data from NIQ, sales of Sauvignon Blanc in the U.S. increased by 5% over the last 52 weeks, with volume also climbing nearly 3%.

According to Kirchhoff, Oliver’s sells a significant amount of Sauvignon Blanc priced around $15, with the store brand’s “Oliver’s Own” Sauvignon Blanc ($10.99) being particularly sought after.

“We’ve noticed customers switching from $30 wines to ones in the $15-20 range,” he explained. “That’s the reason behind the success of Oliver’s Own wines.”

Oliver’s Own, crafted locally, includes seven wines from Sonoma County along with a California sparkling option, all priced between $10.99 and $17.99.

“Each wine we create consistently ranks among the top five bestsellers in its category,” Kirchhoff shared. “We introduced the sparkling variety around six months ago, and its popularity has soared.”

Liz Thach, a Master of Wine and president of the marketing research firm Wine Market Council, recommends Oliver’s Own Russian River Valley Pinot Noir ($16.99) as a staple choice.

“A neighbor introduced me to it once, and it has since become one of my favorite wines,” she shared. “It’s budget-friendly and wonderfully fruity, featuring notes of raspberries, earth, spices, and vanilla — ideal for a Tuesday night pork chop.”

Established in Cotati by Steve and Ruth Maass in 1988, Oliver’s Markets still operates its initial location, in addition to two others in Santa Rosa and one in Windsor.

Prior to starting Oliver’s, Maass operated a roadside produce stand in San Francisco and envisioned a market dedicated to creating an enjoyable shopping experience.

To achieve this, he concentrated on promoting high-quality local products that benefitted the community, including support for local farmers. Additionally, he offered customers the option of organic or conventional goods, all while maintaining a strong commitment to exceptional customer service and employee benefits.

This approach resonated with the community and continues to attract new patrons daily.

Jacob Peters, a financial analyst for Oliver’s Market, noted that the company experienced an increase of approximately 3,000 transactions weekly from January to August this year compared to the same timeframe last year.

“With inflation significantly rising at restaurants this year, many have turned to our prepared meals as an alternative to takeout,” he explained. “We’ve also intensified our ad pricing strategies and broadened our marketing initiatives. Both actions have effectively increased customer traffic.”

Recognizing the popularity of ready-to-drink cocktails like Cut Water and High Noon at Oliver’s Market, Kirchhoff identified a chance to capture some of that market share.

This August, the company collaborated with New Alchemy Distilling located in El Dorado Hills to introduce a new line of Oliver’s Own canned cocktails. Retailing at $14.99 for a four-pack and $3.99 per individual can, the offerings currently include Vodka Lemonade and Paloma. By the end of the year, they plan to add Moscow Mule, Kentucky Sunshine, and Greyhound to their lineup.

According to IWSR, ready-to-drink cocktails were the only significant alcohol category to experience both volume growth (+2%) and value growth (+6%) in 2023. This upward trend is projected to continue, with a compound annual growth rate of +3% expected by 2028.

“We were optimistic about how the cocktails would perform, but the sales far surpassed our expectations,” Kirchhoff remarked. “In just 90 days, we managed to sell around 1,000 four-packs. They have quickly become one of the top five bestsellers in the category.”

(The brand’s vibrant and fresh packaging just received a silver medal at the prestigious NYX Awards in Advertising & Design.)

Oliver’s Markets’ dedication to offering high-quality, locally sourced products has fostered a strong sense of trust among shoppers. This reliability has made the Oliver’s Own brand particularly popular, especially in the wine and beverage section.

On October 30, the store will unveil its latest venture into the beverage sector: artisan spirits. Produced in collaboration with New Alchemy Distilling, this new line will debut with a vodka priced at $18.99, followed by a bourbon and tequila set to arrive just in time for the holiday season.

“In the current economic climate, it’s often more affordable to visit Oliver’s for a delightful dinner paired with some local wine than to dine out,” noted Kirchhoff. “Consumers are looking for the best value for their money. I believe that’s a significant factor behind many of our recent successes.”

You can contact Staff Writer Sarah Doyle at 707-521-5478 or sarah.doyle@pressdemocrat.com. You can also follow Sarah on Instagram at @whiskymuse.