Brewing new strategy: e-com rebalancing alcohol sales amid Covid

The International Wine and Spirits Record, an industry research firm, reports that in the US, 44 per cent of consumers only started buying alcohol online in 2020, compared to 19 per cent in 2019. There is still a lot of opportunity, as the organization predicts that the alcohol e-Commerce market will still increase by 42 per cent this year to reach $24 billion.

"Consumers' increasing proclivity for online purchasing has been driven by necessity in recent months, but these purchasing behaviours are here to stay. As brand owners increasingly invest in the channel, markets must be assessed on their own merits with a bespoke strategy developed. This is especially important as government regulations for alcohol ecommerce may evolve as the channel continues to grow. The forecast size and growth of ecommerce means it can no longer be viewed as merely an interesting niche. Online is now a market in its own right, and one that the IWSR forecasts to equal the Indian beverage alcohol market in value by 2024. The channel should therefore be given an equivalent level of focus and be fully integrated into route-to-market strategies.

All of this has contributed to making on-demand alcohol delivery, whether directly through businesses' sites or through a third-party app, a new consumer habit. And that's been a boon for businesses, even as people get vaccinated and on-premise consumption restrictions lifts.

After Amazon, now Flipkart has partnered with Hipbar last year, an alcohol home delivery mobile app to deliver alcohol in two Indian cities, according to government letters seen by Reuters.

According to CIABC, there was rush outside liquor vends in Delhi after the announcement of a weeklong lockdown. "What we saw today was the panic reaction from the public, driven by their memory of lockdown extensions last year. For lakhs of people all over India alcohol is part of a regular consumption basket that they do not wish to be deprived of."

Apps like Living Liquidz delivering in Mumbai, Navi Mumbai, Thane, and Palghar. HipBar launched in 2015, HipBar claims to be India's first legal alcohol home delivery service provider. It is currently operational in Cuttack and Kolkata. Zomato is Delivering alcohol in Bhubaneshwar, Kolkata, Ranchi, and Siliguri, Zomato recently started delivery in Jharkhand, Odissa, and West Bengal as well.

Kerala State Beverages Corporation (BEVCO)is offering an android to manage overcrowding at liquor stores.Swiggy is also delivering alcohol in the same regions as Zomato.