One of the biggest consumer shifts during the COVID-19 pandemic has been the widespread move to e-commerce. But this has also led to a positive impact on e-commerce sales for the spirits industry and new customers purchasing online. Established spirits and e-commerce markets, such as the EU, have been quick in providing enhanced online shopping solutions for consumers in recent months. Meanwhile, a number of more traditional markets that previously prohibited alcohol e-commerce have started to amend their regulations.
A new Rabobank report, found alcohol brands and retailers are losing billions in online sales, even though U.S. e-commerce sales of alcohol hit $2.6 billion last year. Wine took the top spot in 2019 with $2.2 billion in online sales, spirits came in second at $230 million, and beer was third with $155 million.
The four channels for alcohol e-commerce are online grocery, alcohol marketplaces, direct-to-consumer online wine, and online liquor stores. The latter posted the highest annual sales in 2019 at $1.1 billion. Direct-to-consumer came next with $950 million, followed by online grocery at $295 million, and alcohol marketplaces with $265 million. Online grocery showed the highest growth rate, increasing 115% last year compared to 2018, the report said.
Although alcohol is a fast-growing grocery category, the report said its share of online sales is almost 90% lower than in-store sales — so manufacturers and retailers looking for growth need to make sure they're part of this process instead of allowing e-commerce to come between brands and consumers.
Denne historien er fra July 2020-utgaven av Ambrosia.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra July 2020-utgaven av Ambrosia.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
E-commerce In Alcohol Is The New Route To Market Strategy
Post Covid e-commerce could help the industry out of a crisis. But in the new normal the growth rate may not be high. A report.
Processes for alcohol-free beer production: A review
Carlos MULLER1 Luis Eduardo NEVES1 Luciana GOMES1 Munique GUIMARÃES1 Grace GHESTI1 * http://orcid.org/0000-0003-1043-5748
The US and China offer resilience and opportunity for drinks groups
Strong performances in China and the US have shielded multinational drinks companies from the fallout of Covid-19 in recent months. IWSR examines the reasons why.
Increasing demand for nostalgic flavours in drinks
Nostalgic flavours such as peanut butter, lemonade and chocolate have become increasingly popular during the pandemic. IWSR looks at how the trend is manifesting in different beverage categories.
‘80% of the International Awards won by Indian wines are from Karnataka'
The Wine market in India is still in its infancy but is growing at a much faster rate as compared to any other category/ segment. Grover Zampa, the second biggest manufacturer of Wines in India has been on a spending spree acquiring wineries in India to increase their presence in the market. In an interview with Ambrosia, Ravi Vishwanathan, Chairman, Grover Zampa Vineyards speaks about his investments, the Indian market and the possibilities for the future. Excerpts:
Trends in alcohol consumption in Europe continue their positive course
Over recent months, we have seen very welcome findings on drinking behaviours released by leading health authorities across Europe, particularly with regards to the decline in underage drinking. This contrasts sharply with misleading coverage which often suggests that overall consumption is dangerously on the increase, in particular since the pandemic started, writes spirits Europe Director General Ulrich Adam.
Pernod Ricard and Brown Forman Merger Speculation
As speculation mounts about the strategic merger between Pernod Ricard & Brown & Forman, we look at the far reaching consequences of the deal.
Glasgow Whisky announces distillery purchase to expand global business
The company is expanding its wings with an environmentally sustainable and energy efficient distillery
Excise revenues save the day for Maharashtra and Karnataka
The pandemic has not much changed consumption levels of liquor in Maharashtra, though the excise department may fall short of the excise revenue target of ₹19,225 crores for 2020-21. Home delivery of liquor in Maharashtra has done exceedingly well as it has earned almost equal revenue for the State as compared to last year.
Bacardi adds flavour to Indian market
Over the past few years, Bacardi has further strengthened its position in India as a premium brand. Known for its diverse brand portfolio, Bacardi aims at bringing superior quality spirits to the market. Zeenah Vilcassim, Marketing Director, Bacardi India, unveils her strategy for the Indian market.
