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.
This story is from the July 2020 edition of Ambrosia.
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This story is from the July 2020 edition of Ambrosia.
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