The COVID-19 pandemic drastically accelerated the digital transformation of various sectors, and the alcoholic beverage industry was no exception. Lockdowns pushed consumers to seek alternatives for purchasing their favorite drinks, triggering exponential growth in e-commerce within this industry.
In 2023, the value of alcohol e-commerce in the United States reached record numbers, surpassing $900 million. Companies like Uber, with its acquisition of Drizly (now Uber Eats), and ReserveBar, with the purchase of Minibar Delivery, highlight the growing importance of this distribution channel.
Innovative business models
E-commerce for alcoholic beverages has not only expanded but also diversified its operational models. Currently, providers can choose from various strategies, including online retailers and marketplaces, direct-to-consumer (DTC) sales, subscription services, and on-demand delivery. The latter model, in particular, has gained popularity as it offers consumers the convenience of receiving their alcoholic beverages directly at their door quickly.
According to IWSR projections, e-commerce for alcoholic beverages in the United States will continue to grow at a rapid pace in the coming years. This represents a significant opportunity for brands and distributors looking to expand their reach and connect with new consumers.
Digital marketing strategies and associated costs
Success in alcoholic beverage e-commerce depends not only on having a quality product but also on a well-executed digital marketing strategy. Some key elements include:
- Optimized website: A user-friendly website with high-quality images and detailed product descriptions.
ProTip: a website is not only used to market a product but also to promote a brand. - Social media: Utilizing platforms like Instagram, Facebook, and TikTok to connect with consumers and generate engagement.
- Email marketing: Creating personalized email campaigns to keep customers informed about new products and promotions.
ProTip: a very good example of a marketing campaign is what the retailer Wine Library does, where they send personalized emails based on what the consumer is purchasing. Therefore, it’s important for producers to thoroughly study e-commerce websites to understand which products have already succeeded in their digital spaces. - Influencer marketing: Collaborating with industry influencers to reach a wider audience.
However, this type of commerce also involves specific costs. E-commerce provider fees, packaging and shipping costs, credit card processing, and expenses related to digital marketing are factors that providers must consider when developing their strategy. These costs can be significant but are a necessary investment to compete in today’s digital market.
ProTip: constantly check that your brands are priced well online. If your brand’s value is too aggressive, it will hinder presentations to new retailers.
Casa Donoso Bourbon Barrel Aged
An example of how an effective strategy can drive a product’s success is the case of Casa Donoso Bourbon Barrel Aged wine. This wine stands out not only for its quality but also for the way it has been presented and marketed online. By using high-quality images that highlight its unique bourbon barrel aging process and implementing a digital marketing strategy focused on social media and email marketing, Casa Donoso has managed to capture the attention of a broad and diverse audience.
Alcoholic beverage e-commerce in 2024 is expanding rapidly, and companies aiming to succeed in this market must be prepared to adapt quickly and seize the opportunities this growing channel offers. A solid digital marketing strategy, combined with a focus on customer experience and careful cost management, will be key to remaining competitive and capturing a share of the ever-evolving market.
- https://www.parkstreet.com/alcohol-e-commerce-strategy-in-2024/
- https://wine-intelligence.com/blogs/wine-analytics-pricing-report-data/ecommerce-wine-market-to-soar-to-usd-4-83-billion-in-2024
- https://specialtystoreservicesblog.com/2024/03/11/understanding-retail-resets-a-guide-for-retail-managers-store-owners-and-merchandisers/
