While online alcohol sales
BEVERAGE TREND MONITOR
enjoyed unexpected growth,
online alcohol retailers will need
to focus on retaining customers,
many of whom will return to brickand
mortar stores once fears
of the virus fade.
Grocery retailers will be
the leaders of the online
alcohol market
Consumers primarily purchase
alcohol at supermarkets or mass
merchandisers along with their
groceries. Kroger, Amazon Fresh,
and Walmart+ will become the dominant
players in the online alcohol
market with immediate delivery
services such as Drizly used for
only certain occasions. Nearly half
of online alcohol purchasers have
ordered alcohol from a supermarket
website/app compared to
a third who have ordered from
an immediate delivery service
(e.g., Drizly, Minibar).
Alcohol retailers and brands
adjust to new consumer
behaviors
Alcohol is inherently associated
with social occasions: group parties,
special celebrations, dinner
gatherings, etc. – all occasions that
have been limited because of the
pandemic. Alcohol brands and
retailers must pivot and market to
the small social occasions or online
social occasions consumers are
engaging in during the pandemic.
8 · BBII 6/2020
PANDEMIC BOOM OR BUST
The future of online alcohol sales
Online alcohol sales skyrocketed during the lockdown period as bars shut down, leaving
retail as consumers only source for alcoholic beverages. Many consumers used online alcohol/
grocery delivery or click-and-collect services for the first time in order to avoid shopping in stores.
Nearly half of consumers who purchased alcohol online in the past 12 months say they shop
online in order to avoid in-person shopping due to concerns around the coronavirus.
Online alcohol can step in and
satisfy these occasions, marketing
themselves as a convenient and
safe way to source alcohol for
consumers’ new pandemic social
behaviors such as Zoom happy
hours, online gaming sessions,
small backyard BBQs and more.
For example, Samuel Adams and
Auntie Anne’s released a home
Oktoberfest kit containing Samuel
Adams OctoberFest, a make-yourown
pretzel kit, steins, festive
decorations, and more.
Online retailers will struggle
to retain customers
Gains in the online alcohol market
may be short-lived. Alcohol sales
historically slow during recessions
and as fears of the virus fade many
consumers will return to shopping
in-stores as a way to avoid the fees
associated with alcohol delivery
(though some will undoubtedly remain
online customers after discovering
the convenience of online
alcohol/grocery shopping). Nearly
half of consumers who describe
their financial situation as “healthy”
say they would not purchase alcohol
online because they don’t want
to pay additional fees.
Deliver consumers unique
experiences
Online shopping is all about offering
consumers convenience but
online alcohol retailers can differentiate
themselves by appealing to
consumers’ interest in experiences
especially during a time when more
consumers are drinking at home.
Retailers can use past purchasing
data to provide consumers with
targeted product recommendations.
Over half of consumers aged
22+ who drink alcohol say they are
interested in receiving personalized
recommendations when shopping
for alcohol online.
Make alcohol packaging
more ecomm-friendly
The rise of online alcohol shopping
presents alcohol brands with the
opportunity to create ecomm-
friendly packaging solutions. Glass
bottles for wine and spirits, while
associated with premium and familiarity,
are not ideal for direct-to-
consumer (DTC) shipping. New
innovations in paper bottles (both
Diageo and Pernod Ricard are
either launching or piloting spirits in
paper bottle packaging) and even
rPET bottle packaging solves issues
with DTC alcohol shipping,
though brands need to communicate
to consumers why glass-alternative
packaging is sustainable, as
consumers are largely unaware of
the advantages and disadvantages
of different packaging materials.
Caleb Bryant
Caleb Bryant is Associate Director, Food
& Drink at Mintel, specializing in changing
consumer attitudes, industry news and
beverage trends.