Handling Allocated Whiskeys in 2025/26
Even as the U.S. whiskey market recedes from its Covid highs, many allocated bourbons remain in high demand. Top-shelf bottles from Buffalo Trace, Wild Turkey, Michter’s, Maker’s Mark, Willett, Four Roses and other leading distilleries have kept their hype despite declining consumer spending elsewhere in the category. People still covet and hunt down unicorns.
Which presents a tricky task for beverage alcohol retailers. Stores only receive a small number of allocated products. The math makes it difficult. Allocated spirits represent only a tiny portion of a business’ profits, but can cause a disproportionately large percentage of headaches for retailers. No matter what, some customers will feel disappointed — or worse, cheated and ignored.
So how can retailers best sell them in a relatively easy manner?
On the Back Bar
One strategy that has gained steam in recent years is stocking many of these bottles on the store’s bar. Naturally, this only works in states that allow retailers to operate an on-premise section within their business.
“While there is no good way to do it, we try to do our best job to spread as much juice out to every customer that comes in the door. First and foremost every allocated product will get a placement at one of our in-store bars,” says Adam Silverstein, COO, Garfield’s Beverage Warehouse in Chicago. “Every item we place on our bar menu is priced well below market pricing. Our goal is open the opportunity to our consumers to try these unicorns at a price point that doesn’t break the bank. We also utilize allocated to be the focal point of tastings and raffles in the stores.”
Thus the backbar becomes a win-win for retailers that can stock allocated products there. It’s a convenient way to pour these items with the most possible customers, making more people happy.
“It takes the back room and secret handshakes out of the equation,” Silverstein says. “Everyone has customers that they enjoy seeing and you want to help out as many people as possible, but we just don’t receive enough product to satisfy our customer base”
“We found [the bar] was the most approachable way to get juice to lips in as many consumers as possible,” he adds. “It was well received. Our customers know that we don’t gouge prices on allocated items and everything is priced at a below-market pour. If we were to charge regular bar prices on some of these items, I think that the consumers would view it more as a money grab than trying to accommodate as many people as possible.”
Points-based System
Another system that has worked well for stores involves customers accumulating points whenever they buy from the business. People then gain access to rare bottles based on how many points they have earned.
Conti’s Wines & Spirits of Southington, CT, runs such a program.
“We tried to come up with a plan that’s fair, equitable and transparent,” says owner Nick Conti. “Anyone who walks in the door can know exactly where they stand with this.”
In a small state with a preponderance of good spirits shops, Conti’s remains recognized for its world-class whiskey program. Conti is a pioneer of single barrels in Connecticut, bringing in picks of Buffalo Trace, Four Roses and Russel’s Reserve products for many years. His store selections of popular brands remain in hot demand. Additionally, when allocated items arrive, Conti and staff will place them in a locked glass case within a 14-foot-tall, 9-foot-wide whiskey barrel out on the floor. Customers can enter and see what rare items will be available to those with the most points.
“The system prioritizes customers who shop with us,” Conti says. “It prioritizes the folks who come and buy a six-pack and a bottle of wine once a week.”
In an act of transparency, the store publicizes the points rankings. Conti’s will also run double-points days, or double-point items, to help drive sales.
“The points have no financial value,” Conti said. “Anyone can get access to bottles in this system.”
Individuals at the top of the points list get first dibs on sought-after picks like Weller Full Proof, EH Taylor and Four Roses Single Barrel. Those atop the list also get access to allocated items, with their names drawn out of a hand, when Conti opens the glass case inside the giant whiskey barrel during special release events.
“We try to make this as fair and equitable as possible,” says Conti. “That doesn’t prevent us from getting hate. But those who do hate our system don’t shop here anyways. They just want to come in and snipe a bottle.”
As whiskey sales recede from Covid highs, and spirits production remains high, Conti has scaled back what he puts in the glass case.
“It’s surprising how many bottles aren’t considered allocated anymore,” he said. “Bottles that used to go to allocation years ago now go on the shelves. Bottles like the Michter’s 10 Year Olds, and Bomberg’s and Shenk’s, anyone could get those off the shelf at our store.”
Conti has run other programs in the past around allocated items. “Our points system was birthed out of necessity to be in compliance with state liquor laws,” he said. “Folks everywhere in the industry should make sure that they read their state liquor laws to see what they can and cannot do.”
“If you have any questions about how you might want to handle your allocated whiskeys, please do feel free to reach out,” he added.
Hit the Lottery
Some states permit lottery programs at retail stores, where entrants win the right to buy rare items. This is another system where everyone has an equal chance at nabbing a bottle.
The New Hampshire Liquor Commission, which operates 67 NH Liquor & Wine Outlet locations throughout the Granite State, operates a best-in-class lottery with its biannual Limited Release Raffles. In 2024, more than 28,000 consumers and licensees digitally entered the spring and fall drawings. Nearly 13,300 individuals received the opportunity to purchase hard-to-find spirits.
Individuals can purchase these products through a randomized process by using NHLC’s Sips Platform. Customers enter the drawings by filling out an online form, and are sent a confirmation email following their submission. The Sips Platform uses a proprietary algorithm to evenly distribute the winnings among entrants, according to the NHLC, and also prevents users from entering multiple times by using address verification.
Other rare items go out in ghost drops, unannounced SKU offerings where large amounts of allocated bourbons become available, suddenly, at suggested retail price. Each drop is announced via email to more than 24,000 subscribers interested in allocated whiskeys, and shared across NHLC’s social media channels, reaching a combined audience of more than 191,000 accounts. Information on these limited-edition product drops and the participating outlets is not announced until the items are available in stores. Products are available on a first-come, first-served basis, and remain available until all stock is sold out. To ensure fairness, each customer is limited to six bottles.
“We are always listening to customers for advice on how we can get better, and while the feedback on the ghost drops has been 99% good, one thing we decided to do the most recent time based on customer feedback was hold the drops on the weekend,” says Mark Roy, Division Director of Marketing, Merchandising, and Warehousing. A veteran of the NHLC, Roy is the father of the commission’s worldclass whiskey program. “People told us that getting these bottles had been tough logistically when we did them during the week, because people were at work. The initial customer feedback about the recent Saturday ghost drop has been incredible.”
Charity and Challenge
In Greenfield, IN, Chilly’s Liquors uses many allocated items for charity.
“We try and tie allocated items to our annual Whiskey for Warriors event in November and a live auction for BTAC and Pappy bottles,” explains Matt Coram, VP, Director of Operations at Chilly’s Liquors. “Since we don’t receive that many, we put them in there to raise a lot of funds for the VFW post in Greenfield. During this event we have a right to purchase lottery on items that are still allocated but easier to come by.”
“We don’t have any plans on changing the way we handle allocated items at this time,” Coram adds. “Maybe one day we will just put these items out on the shelf. I really do think if your state allows you to do so, holding a right to purchase lottery and tying in a local charity is a great way to handle allocated products. I would be interested to hear what other retailers are doing to handle allocated items.”
Which is also to say that no system is perfect, naturally. Each program has its drawbacks, presenting different ways that people might get upset. At the end of the day, your regular customers will let you know whether your system is working fairly and effectively.
“There is no right or wrong way to do it,” says Silverstein of Garfield’s. “You have to make the decision predicated on what is best for your individual business. No matter what you do, someone will say that you are doing it wrong. At the end of the day, any retailers focus should be customer satisfaction. If your customers are telling you something, it’s normally best if you listen.”
Kyle Swartz is editor of Beverage Dynamics. Reach him at kswartz@epgacceleration.com. Read his recent piece, The State of U.S. Whiskey at Kentucky Bourbon Fest 2025.
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