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.
Dogfish Head releases oat-milk hazy IPA beer
1 Jun 2021
It’s only been a few years that oat milk has been on grocery store shelves, but the plant-based milk alternative has made waves with its latest inroads being in the beer sector. In partnership with oat milk maker Elmhurst 1925, beer brand Dogfish Head ...Read more
Consumers prefer no rather than low-alcohol
10 May 2021
Beverage market analysis firm IWSR expects the no- and low-alcohol category to grow 31% by 2024, according to a new report that reviewed 10 key markets representing 75% of the global consumption of these beverages. The anaylzed markets were Australia, ...Read more
Startup Bevry takes first mover advantage in Indian oat milk category
5 May 2021
Indian startup Bevry has developed its own oat milk formulation, which it is manufacturing and selling exclusively in India with the goal of becoming the “Oatly of India.” According to the company, it is the first brand to manufacture and sell an oat-b...Read more
Sugar tax in South Africa results in ‘positive changes’
23 Apr 2021
A study published in The Lancet found that following the 2018 implementation of a 10% tax on sugar-sweetened beverages in South Africa, the overall consumption of sugar from these beverages fell 35% from 16.25 grams per person daily to 10.63 grams per ...Read more
Danone Manifesto Ventures makes first UK-based investment
8 Apr 2021
Danone’s VC arm, Danone Manifesto Ventures (DMV) made its first investment in a UK-based business with its commitment to a £2.5m funding round for the healthy drinks brand Moju. Moju said the French Dairy giant’s minority investment in the company will...Read more
Topo Chico finally debuts its hard seltzer
1 Apr 2021
Molson Coors Beverage Company, which is exclusively manufacturing Topo Chico Hard Seltzer through a brand authorization agreement with Coca-Cola, finally released the concept onto shelves on March 29 after announcing the development of the brand in Jul...Read more
Chobani enters into pilot program with PepsiCo
30 Mar 2021
Greek yogurt maker Chobani recently entered into a distribution partnership with PepsiCo to sell its new yogurt drinks at convenience stores, colleges and universities in the northeastern part of the U.S. In the original report on this news, Bloomberg ...Read more
Danone revamps itself, ousting CEO and adding to its portfolio
24 Mar 2021
As Danone continues to face pressure both from industry competition as well as activist investors, the company has decided to separate its chairman and CEO roles, which are currently held by Emmanuel Faber. Additionally, Danone is searching for a new C...Read more
Nestlé purchases Essentia Water, increases functional water portfolio
18 Mar 2021
Nestlé entered into an agreement in early March to acquire ionized alkaline water brand Essentia Water, which the Swiss company said was the No. 1 selling bottled water brand in the natural channel.Read more
Ocean Spray launches Wave caffeinated sparkling water
16 Mar 2021
Cranberry brand Ocean Spray launched a new line of functional water through an exclusive partnership with Walmart. Called Wave, the caffeinated sparkling water contains 50mg of caffeine derived from black tea, real fruit juice, and has no added sugars,...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