COVID-19 may permanently change how we buy alcohol21 May 2020
Online sales of alcohol are skyrocketing due to restrictions on movement that inhibit consumers from enjoying their favorite cocktails outside the confines of their house and deter in-person trips to the supermarket. According to data from Nielsen, e-commerce booze sales are up 234% for the seven-week period ending April 18 as compared to last year. This continued growth makes the alcohol category the fastest growing e-commerce department among consumer packaged goods.
This data from Nielsen matches reports from e-commerce alcohol enterprises. Drizly reported its sales increased 392% over baseline for the week ending April 26th. Much of that increase was driven by new customers who comprised 27% of the total orders as compared to the usual proportion of 15%. Direct -to-consumer wine club, Winc, saw a 578% increase in new member sign-ups and a corresponding 29.6% increase in sales during the week ending March 21. Similarly, the online liquor service Minibar had its sales jump 160%.
Such a rapid and significant increase in alcohol sales will be a boon for a segment that’s been struggling. Beer volumes in the U.S. have declined for years and wine sales saw their first drop in 2019 after 25 years of growth. This improvement in sales could also translate into a turnaround for the industry if the pandemic drags on and online alcoholic beverage sales continue to gain steam.
Industry leaders like Drizly CEO Cory Rellas are predicting online alcohol sales to accelerate by as much as 8%, a 6% jump from today’s figures, reported The Wall Street Journal. This rise in orders could help ingrain the habit for consumers who are already used to the concept of online grocery purchasing but are still adjusting to the idea of e-commerce alcohol.
But direct to consumer is only one avenue through which demand for alcohol has increased. In the retail space, sales of spirits have seen the most pronounced growth (75%) followed by wine (66%) and then beer, malt beverages and cider (42%), according to data from Nielsen.
Forbes reported that tequila and gin were the biggest winners for the month seeing astronomical increases that mirror the libations’ growing popularity among consumers. On-demand grocery delivery service Instacart also saw its alcohol sales grow by 75% during March.
Although unfortunately named, Corona beer sales do not seem to have plummeted. Constellation Brands, the brew’s parent company, saw sales soar 50%.
Nielsen data estimates that the U.S. alcohol market will need to sustain 22% volume growth across all alcohol categories in order to compensate for the financial impact caused by the closure of bars and restaurants. Although sales have seemingly been catapulted into the stratosphere, only wine and spirits are pacing above this 22% volume growth threshold, according to Nielsen.
Unilever to divest most of its tea business but keep RTD Lipton
7 Aug 2020
After a nearly seven-month review of its tea business, Unilever announced that it would divest the majority of its €3 billion ($3.5 billion) tea business, which includes tea brands PG Tips, Pukka Herbs and Tazo that generated €2 billion ($2.3 billion) ...Read more
Coca-Cola to launch Topo Chico hard seltzer brand in Latin America
6 Aug 2020
The hard seltzer market has seen phenomenal growth and now Coca-Cola is getting into the space with the launch of Topo Chico Hard Seltzer. Coke announced the alcoholic beverage will be released in select cities in Latin America later this year. In 2021...Read more
Chobani releases a functional non-dairy beverage
5 Aug 2020
Chobani released a non-dairy probiotic drink to further its efforts to expand out of animal-based dairy. The functional beverage is made with an oat base, has 80 calories, 11 grams of sugar and is made with organic, non-GMO ingredients.Read more
Dairy free segment gets a banana milk
4 Aug 2020
The non-dairy category has exploded in recent years from a category dominated by soy milk to a market with milks made from nuts, grains and plant-based protein sources. Now, the category has a banana milk.Read more
Kombucha Brewers International releases code of practice to standardize kombucha
3 Aug 2020
U.S. kombucha trade association Kombucha Brewers International (KBI) established a code of practice that outlines the quality standards for the production of this fermented beverage. The trade group is also working on releasing a seal for manufacturers...Read more
Following second quarter earnings report, Coca-Cola looks to drop more brands
30 Jul 2020
After Coca-Cola announced the discontinuation of its Odwalla juice brand earlier this month, Coke's CEO James Quincey said during the company's second quarter earnings call that more of the CPG giant’s brands will be on the chopping block in the near f...Read more
Anheuser-Busch releases Busch Light Apple beer
24 Jul 2020
It’s not yet fall, but Anheuser-Busch launched an apple-flavored lager under its Busch Light line. This is the first time in 65 years that the Busch Beer brand has released a flavored beer product, and it will be available for a limited time in select ...Read more
Analysts report Monster Beverage likely to enter hard seltzer segment
21 Jul 2020
Stifel analyst Mark Astrachan released a report stating that he expects energy drink giant Monster Beverage to enter both the hard seltzer space and the non-alcoholic sparkling water category.Read more
Kerry ingredients company will debut its Botanicals Collection Zero
16 Jul 2020
Kerry introduced its new Botanicals Collection Zero, a range of botanical extracts that are specifically designed for low- and no-alcohol beverages. The ingredient company will offer 15 new standard extracts with an additional 35 other options that the...Read more
Danone rejects claim that its infant formulas contain toxic substances
15 Jul 2020
After industry watchdog group Foodwatch released a report last October that aromatic mineral oils (MOAH) were found in 16 infant formula brands, including Danone’s Gallia Galliagest Lactose-free Growing-up product, the French manufacturing giant recent...Read more
Are you a supplier
Here's what we can do for you
- Generate quality leads for your business
- Stay visible for 365 days of the year
- Receive product inquiries and respond to meeting requests directly
- Improve company online presence through Search Engine Optimisation