Daily Insights

Partner Up

By: Alizah Asif Farooqi | Jul 08, 2019

Online alcohol delivery serves as one of the largest areas of growth for the spirits sector. During the last sixteen months, the online spirits market grew over ten times faster than the overall industry, reaching over $1.7 billion revenue in 2018. While this remains a fraction of industry sales, consumer demand for convenience has led to both shifting behavior and increased usage of these services.

On Google, searches for “alcohol delivery” have more than octupled over the last four years according to Gartner L2’s Digital IQ Index: Spirits. Online retailers are in a race to capture this growing market by expanding distribution ranges, improving fulfillment capabilities and competing aggressively for consumer awareness. Over the past year alone, Drizly—the fastest growing online alcohol retailer—entered forty new markets by acquiring on-demand alcohol competitor Buttery and partnering with local retailers, including West Coast liquor retailer BevMo. As of July 2019, the retailer serves over 101 U.S. cities across 27 states, offering one-hour delivery to major urban markets.10 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.

Seamless handoff from brand site to online retailers is now an expectation from consumers, and leader brands maximize visibility and reach by partnering directly with e-tailer platforms. Partner brands receive five times more traffic on these retailers than non-partner brands, due to a combination of better on-site placement, higher page visibility and integration into retailer digital marketing campaigns. Cîroc’s partnership with ReserveBar, for example, allows it to appear prominently on key category pages, the homepage and email campaigns. This resulted in outsized retailer traffic to Cîroc products — especially compared to other vodka brands with higher overall market share, such as Grey Goose or Belvedere.

Brands must take steps to maximize the potential of their e-tailer partnerships, across site and digital marketing channels. Doing so will let them capture and convert consumers, with online delivery showing no sign of slowing down