Daily Insights

Online Alcohol Delivery Accelerates

By: Nafia Islam | Sep 23, 2019

Online alcohol delivery serves as one of the largest pockets of growth for the spirits sector. Over the last sixteen months, the online spirits market grew more than ten times faster than spirits sales overall. Having reached over $1.7 billion in 2018, the market has no signs of slowing down. 

While this remains a fraction of overall spirits sales, consumer demand for convenience has led to both shifting buying behavior and rising demand for such services. On Google, searches for “alcohol delivery” have more than octupled over the last four years. Online retailers are racing to capture this growing market by expanding distribution ranges, improving fulfillment capabilities and competing aggressively for consumer awareness—which opens the door for brands to capitalize. 

Over the past year alone, Drizly—the fastest growing online spirits retailer—entered forty new markets by acquiring on-demand alcohol competitor Buttery and partnering with local retailers, including West Coast liquor retailer BevMo. The retailer now serves over 101 U.S. cities across 27 states, offering one-hour delivery to major urban markets. In the race for fast and easy fulfillment, liquor retail giant Total Wine & More launched its same day click-to-door service in October 2018, and burgeoning retailer ReserveBar now offers same-day delivery service in 26 major cities.

With buying behavior increasing online, brands must implement best practices for e-commerce to catch this wave as online alcohol sales become increasingly common. Garner L2’s Spirits: Optimizing for E-Commerce report details how leaders are partnering directly with online retailers like Drizly and ReserveBar to maximize visibility and reach. These partner brands garner more consumer traffic on retailer platforms due to the knock-on effects of increased visibility and premium placement on retailer sites and marketing campaigns, making this a key step for brands looking to increase online presence.