October 1, 2018
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The last year was a period of dramatic growth for the online delivery of wine. The reasons for the uptick are manifold. As customers became used to the "Amazon affect", they craved for more products delivered and more services responded to the need in markets across the country.Data from the San Francisco area-based Slice Intelligence research notes that online alcohol delivery grew by an impressive 32.7 percent in 2017. In the same period, internet sales increased at an average rate of three percent month over month.
"While e-commerce in the alcoholic beverage space is still immature, we are starting to see the shape of a robust category. It makes sense that wine would lead all subcategories within alcoholic beverages, due to the relatively high value of scarce wine," according to Slice's principal analyst Ken Cassar.
December, according to Slice, was the highest revenue-earning month of last year, comprising 12.2 percent of total annual sales. These numbers were based on a survey of 5.5 million shoppers, according to more Slice data.
The leader of the delivery services pack remains Drizly, Slice says, and the company's revenue grew by 61.8 percent in 2017. The Boston-based company was one of the first to enter the sector and has deep pockets, partially funded by a separate DBA of the powerful Washington DC-based Wine & Spirits Wholesalers of America.
In comparison, the New York-based Minibar Delivery, a direct competitor of Drizly, saw revenue growth of only 6.5 percent in 2017, much lower than the 23 percent growth shown by e-commerce overall according to Slice. Wine.com accounted for 13.73 percent and Fresh Direct 9.43 percent – in a slightly-more-than-one-year projected period running from the beginning of 2016 to the end of January 2018 – according to Slice.
Cassar declined to further discuss their trend data and the dynamics behind it so I went to other delivery providers, retailers who use them and analysts who know the field to explain these applications' dramatic growth.
Read more at source: Wine-searcher.com