Here’s what you need to know to start your week
- One year sales of hard seltzers exceeded $585 million in March, a 185% jump from last year
- Recent acquisitions of hard seltzer producers by major players signal the drink is here to stay
- Expect ready-to-drink cocktails to be a driver of growth and change within the industry
This is probably not news to any one in the wine/liquor store industry, but hard seltzer has arrived. Posting some impressive numbers its first couple of years on the market, the industry has embraced the new product albeit with some skepticism at first. However, with the strategic acquisitions from ABinBev and increasing cannon of offerings, no one is skeptical anymore.
Beyond the eye-widening sales growth, the consumer is leaning in to the category as a whole. Ready-to-drink cocktails have been expanding at breakneck speeds with virtually every brand creating new products to adapt to the consumer preference of low ABV, health conscience, and convenient drinks.
What does this all mean to liquor/wine store owners? It’s critical that you correctly market and position your most important products. City Hive helps our merchant partners target customers based on purchase history and preference data, and create powerful promotions using a multi-channel approach.
- On average, 10% of winery sales are done online
- Average order value is higher for ecommerce than in person or wine club sales
- Order frequency on winery websites was up 30% last year
It seems that everywhere we turn, ecommerce is driving the industry growth and creating brand new opportunities for sellers and buyers. Wineries still send more than 3/4 of their product to distributors and retailers but their online growth can’t be ignored. With a higher order value on average and less costs for the wineries, we expect to see this trend to continue for the foreseeable future.
It should be no surprise that the wineries are getting into the online marketplace like the rest of us. It’s not only reassuring but also offers an opportunity. Wineries clearly want to expand their access to new customers, and with a well designed multi channel approach, your liquor store can help them do that. Convince the wineries you work with to have them push their product through your online site given your larger customer base and more powerful platform.
- Retail giants are beginning to utilize bluetooth technology to secretly track shoppers data and movements
- Public concerns over privacy and data usage have started to highlight the practice as opaque and invasive
It’s hard to go a day without hearing about another data privacy story or customer information leak. The concerns of proper data sharing and consumer privacy are real and important. Recently, some retail giants have been revealed to be using tracking beacons in their stores to monitor and record consumer information and behaviors from their apps on their phones. The article highlights that public opinion is certainly not in favor of this practice.
With great power comes great responsibility. At City Hive this means more than a spiderman quote. We will never sell, share or jeopardize your customers’ data. Transparency and responsible data policies are a key tenet of our company and we push for the rest of industry to join us.