News
COVID-19 may permanently change how we buy alcohol
21 May 2020Online 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.
Related news
UK to ban junk food TV advertisements before 9pm
3 Oct 2024
In a bid to reduce childhood obesity, the UK government has introduced a policy, coming into effect on 1 October 2025, banning junk food advertising on television before the 9pm watershed.
Read moreWhich food and beverage brands made TIME’s Most Influential Companies list?
2 Oct 2024
Chickpea pasta, prebiotic sodas, food boxes, non-alcoholic beer, and a soil carbon marketplace are the specialties of the five food and beverage brands that earned a spot on TIME’s 2024 list.
Read moreNew environmental food scoring standards emerge
30 Sep 2024
EIT Food and Foundation Earth collaborate to launch environmental food scoring for products entering the global supply chain.
Read moreDanone removes NutriScore from products
20 Sep 2024
Following an algorithm update that gives some of its sweetened drinks a worse score, Danone has removed the front-of-pack label, NutriScore, from all of its products – putting profit before public health, say campaigners.
Read moreNestlé develops a new fat reduction method for dairy ingredients
26 Aug 2024
A Brazil-based Nestlé research and development team has developed a way to reduce the fat in milk powder by as much as 60%, without impacting the key characteristics that consumers enjoy.
Read moreBetter Juice expands its range to sorbets
16 Aug 2024
Food tech startup Better Juice has developed a technology to reduce the sugar content in fruit sorbets. The process retains the natural vitamins, minerals, and flavours of fruit, while offering manufacturers an easy-to-implement and scalable solution t...
Read moreGerman study reveals high sugar, fat, and salt levels in children's foods
13 Aug 2024
The food industry is making slow progress in reducing the high levels of sugar, fat, and salt in German food and beverage products marketed to children, according to the Max Rubner Institute (MRI).
Read moreSwedish court overturns prohibition on winery’s use of imported frozen grapes
12 Aug 2024
Swedish company Drood Winery has successfully challenged the Swedish Food Agency’s decision to prohibit the production and sale of their product made from frozen grapes imported from Iran.
Read moreParis Olympics: Food and beverage brands champion health, fun, and sustainability
5 Aug 2024
Food and beverage brands are aligning with the Paris Olympics 2024 Food Vision, which emphasises sustainability, local sourcing, and plant-based diets.
Read moreThe coffee supply chain is failing farmers, says Solidaridad
30 Jul 2024
The coffee industry’s economic model means its profits do not reach farmers, despite there being enough value to be shared all along the supply chain, according to a new report by Solidaridad Network and IDH.
Read more