In this new video, L2 Research Lead Colin Gilbert speaks about the small but growing role of e-commerce in the Spirits industry. Historically, brands competed for premium shelf space at local liquor stores but focus is shifting towards visibility on e-tailers such as BevMo and Total Wine. Gilbert said e-commerce accounts for a small fraction of Spirits sales, but is expected to grow as consumers seek convenience. Amazon’s entry in the market will be a game-changer; the e-tailer ships wine to 22 states, and has announced plans to open Spirits storefronts.
Innovations are happening on the mobile front, Gilbert said. Mobile app Drizly (launched in May 2013) is applying the Fresh Direct model to alcoholic beverages, and conglomerates such as Pernod Ricard jumped at the chance to advertise on it. It’s uncertain whether the investment will pay off, but brands are no longer waiting. For more on the e-commerce footprint of 68 Spirits brands, download an excerpt of our Digital IQ Index: Spirits report.