Young men and women drinking cocktail at party
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Americans are drinking less by demanding more from every pour. U.S. spirits sales dropped 2.2% in 2025—yet a mixology counter trend is driving demand for higher quality cocktails. Whether crafting cocktails at home, reaching for the ready-to-drink variety—the only category in the spirits world that grew last year, up 16% to $3.8 billion—or opting for no-alcohol “mocktails,” one ingredient cuts across every cocktail served: ice. Easily overlooked, ice quality can make or break a cocktail.
For the most discerning mixologist, only pure, flavorless, slow-melting ice will do. Sub-Zero’s new 15-inch undercounter ice maker is built to meet that standard. It was engineered from the ground up by rethinking how ice is formed, preserved and delivered in the quietest way possible.
Since its founding in 1945, Sub-Zero has set the benchmark for high-performance refrigeration. Still family-owned under third generation CEO Jim Bakke and spanning three brands to meet virtually every kitchen appliance need—Wolf for cooking and Cove for cleaning—the company has weathered industry headwinds that have challenged other major appliance brands.
“Sub-Zero is widely regarded as the preeminent brand in the luxury appliance industry,” observed Chris Ramey, founder of Home Trust International. “There are only a select few brands that signify luxury status within a private residence. Foremost among them is Sub-Zero.”
Mixed Messages
A conflicted picture emerges when looking at the major appliance market. The broader home-improvement sector is basically in a holding pattern, with Harvard’s Joint Center for Housing Studies reporting “stagnant interest in home improvement” based upon trends in remodeling permits and retail spending on building products. Yet, American homeowners still invested $520 billion in remodeling last year, with kitchens accounting for about 10% of that total.
Buying new appliances is a quick kitchen refresh and Americans spent nearly $90 billion on home appliances in 2025, up almost 2% from 2024, according to the Bureau of Economic Analysis.
That lines up with the 1.8% sales increase among home appliance retailers which carry premium brands such as Sub-Zero, Wolf and Cove.
However, the mass market tells a different story: Whirlpool reported a 6.5% drop in revenue last year and Home Depot’s appliance sales declined by 1%.
At the high-end, the National Kitchen and Bath Association reported stronger demand for luxury/premium products than for midrange and value-oriented products. Germany-based BSH saw North America sales pop over 5% in local currency in 2025, driven by growth in its luxury Thermador and Gaggenau brands. GE Appliances owner Haier reported 7% growth in its premium brand revenue.
But all is not rosy for some high-end brands. Middleby just sold a 51% majority stake in its residential kitchen business, led by Viking Stove, to private equity firm 26North Partners in a deal valued at $885 million late last year. This comes after the North American residential business dropped from $702 million in 2022 to $461 million in 2024.
Staying One Step Ahead
Sub-Zero has kept its momentum even as the broader appliance market, even at the luxury level, has faced challenges. Bakke reported that orders increased “dramatically” in the second half of 2020 and have continued on an upward trajectory ever since, despite some supply chain hiccups early on. But having navigated through those challenges, it’s come out on the other side “a better company for it.”
Bakke said the company saw a “nice increase” last year and is planning the same this year, despite some consumer hesitation to commit to major renovations.
On the positive side, with nearly all products manufactured in North America, it hasn’t been as impacted by tariff policies as other competing brands. “Our pricing reflects almost a zero influence of tariffs, so our price increases over the last couple of years have been a bit smaller than the competitors,” Bakke noted. That has strengthened its position with retailers and designers who have seen other brands’ prices surge.
Being family-owned, rather than part of a multinational conglomerate, is another competitive advantage. That allows Sub-Zero to maintain unusually close personal relationships across its distribution channels, including retailers, designers, builders and architects. At the same time, its established brand equity and strong reputation pulls consumers in at the top of the funnel.
The company maintains 65 company-owned showrooms that are essentially dream factories to create the ultimate luxury kitchen. They are not designed as retail sales floors, but as brand immersion experiences with expert consultants serving as guides to inspire and educate potential customers before being referred to an authorized dealer.
A wide range of independent retailers and designers carry the product line, but Sub-Zero’s premier retail partners have dedicated Sub-Zero, Wolf and Cove environments, called “Living Kitchens.” There are about 125 Living Kitchen partners across the country, including Abt Electronics in Chicago and Los Angeles’ Snyder Diamond.
In launching the new Sub-Zero icemaker, the company has followed the same exacting standards and attention to detail that have defined the history of the company. It replaces an OEM-manufactured unit that had been in the line for years. “We felt we could build a much better ice maker at a lower cost,” he said.
Sub-Zero undercounter ice maker
Courtesy of Sub-Zero
The goal was to produce the best residential ice maker possible, without cost or time constraints. It was a slow build to get it right: producing consistent, slow-melting ice cubes in an appliance that operates silently, is easily cleaned and design forward.
While the company’s refrigerators have long made ice, the new standalone ice maker fills an evolving market need. “People simply want more ice for water, coffee, sodas, juice and cocktails,” Bakke explained.
Built To Last
Bakke, grandson of founder Westye Bakke and who stepped in as president and CEO in 1990 after his father’s untimely death, said the company has been approached with “significant opportunities” to sell the company, but that isn’t in his playbook.
“I’ve never had any interest in selling the company and I think that is one reason why the company’s been so successful,” he shared. “I just concentrate on the brand every single day and in my humble opinion, we dominate the lane that we are in.”
To which, Home Trust International’s Ramey agrees: “Because Sub-Zero remains family controlled, the company can make decisions guided by a long-term vision, rather than short-term pressures. Its continued commitment to manufacturing in the U.S. reflects an uncompromising dedication to quality control. That discipline has rewarded Sub-Zero with the distinction of remaining the most sought-after brand in luxury homes.”
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