How Is Alcohol Legislation Changing In The Wake Of The E-Commerce Boom?
Ambrosia|July 2020
As e-commerce develops into a critical channel for alcohol sales, IWSR looks at what legislative repercussions there might be in markets such as the EU, US and India
How Is Alcohol Legislation Changing In The Wake Of The E-Commerce Boom?

One of the biggest consumer shifts during the COVID-19 pandemic has been the widespread move to e-commerce. But this has also led to a positive impact on e-commerce sales for the spirits industry and new customers purchasing online. Established spirits and e-commerce markets, such as the EU, have been quick in providing enhanced online shopping solutions for consumers in recent months. Meanwhile, a number of more traditional markets that previously prohibited alcohol e-commerce have started to amend their regulations.

A new Rabobank report, found alcohol brands and retailers are losing billions in online sales, even though U.S. e-commerce sales of alcohol hit $2.6 billion last year. Wine took the top spot in 2019 with $2.2 billion in online sales, spirits came in second at $230 million, and beer was third with $155 million.

The four channels for alcohol e-commerce are online grocery, alcohol marketplaces, direct-to-consumer online wine, and online liquor stores. The latter posted the highest annual sales in 2019 at $1.1 billion. Direct-to-consumer came next with $950 million, followed by online grocery at $295 million, and alcohol marketplaces with $265 million. Online grocery showed the highest growth rate, increasing 115% last year compared to 2018, the report said.

Although alcohol is a fast-growing grocery category, the report said its share of online sales is almost 90% lower than in-store sales — so manufacturers and retailers looking for growth need to make sure they're part of this process instead of allowing e-commerce to come between brands and consumers.

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Diese Geschichte stammt aus der July 2020-Ausgabe von Ambrosia.

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