28th of December, 2020 by Kathryn Lundstorm. From Adweek.

To recap the alcohol industry in 2020, although one might assume that the drinking public didn’t have much to cheers to this year, alcohol (ecommerce) grew by more than 40% globally this year. This could happen thanks to a demand for alcohol delivery skyrocketed, launching apps like Drizly and ReserveBar to unprecedented success. Specifically, Drizly grew up to 1,114% this year. At the same time, state governments loosened alcohol regulations, allowing breweries to sell directly to consumers and restaurants and bars to add alcoholic drinks to to-go orders.

Globally, the alcohol industry contracted by 8% this year, according to IWSR Drinks Market Analysis, and experts don’t see that changing in coming months. In addition, alcohol delivery and direct-to-consumer (DTC) brands have seen explosive growth, with global ecommerce alcohol sales on track to grow more than 40% by the end of the year, according to IWSR.

What happens is that this growth incentives the big players to expand their business within the category. For instance, Anheuser-Busch is launching its seventh hard seltzer brand in March 2021 with agave-based and tequila-inspired Cacti Hard Seltzer, a collaboration with a worldwide famous rapper Travis Scott.

There is also a tight link between local retailers and alcohol delivery apps like Drizly and ReserveBar that allowed these local retailers to deliver alcohol at home, exploding in popularity. Brands then incorporated Drizly links—or the local equivalent—to digital advertisements. The now-recognizable Drizly logo is also showing up on billboards and other ads for alcohol brands, directing consumers to order through the app

All in all, IWSR also predicts the global alcohol industry won’t reach its pre-pandemic state until 2024.

“The macro news here is going to be that the alcohol beverage industry is very resilient,”

 

To read the full article click on the following link: https://www.adweek.com/retail/how-covid-19-and-ecommerce-disrupted-the-alcohol-industry-in-2020/

Comments are closed.

Post Navigation