The economic downturn caused by the COVID-19 pandemic poses new challenges for the alcoholic beverage industry and presents different types of consumer behavior.
On the upside, alcoholic beverage sales have skyrocketed since the start of nation-wide lockdowns. This can be partly attributed to the essential business status of liquor stores that enable them to remain open. According to the Republic National Distributing Company, sales of spirits jumped by 50% in the third week of March. Nationally, the overall increase for that week was 55%!
Which types of alcoholic beverages experienced the biggest spikes?
From highest to lowest: tequila, gin, and wine. Canned alcoholic beverages were also a top performer, with a rise of 93% in sales for the third week of March. To the demise of critics who sustained that Corona beer sales would be affected due to fear of the coronavirus, its sales soared around 50%. Moreover, customers are buying in bulk, so bottles of higher quantities have been experiencing higher demand than smaller ones.
With bars and restaurants closed, it makes sense that online purchases of alcohol have increased significantly – twice as much compared to a year ago. In addition, consumer adoption of pickup and delivery is rising, and at City Hive the number of purchases processed through our platform has increased unprecedentedly by 400%. The average basket size was also up nation-wide by around 20%.
Lockdown measures eased
As lockdown restrictions begin to loosen up, consumers will return to consuming alcohol at restaurants and bars, which might reduce the total number of orders processed online. Nonetheless, the pandemic has demonstrated the importance of offering pickup and delivery services in order to remain competitive in the industry. The future of the alcoholic beverage industry is promising and more technological than ever before.
Enter City Hive
The alcoholic beverage industry has experienced a growth in demand when lockdown started. While the future is uncertain, we can help you capitalize on consumer’s transition to online ordering. From building your own website and mobile app to employing loyalty reward programs, City Hive will help you every step of the way to come out stronger after the pandemic ends!