Unsurprisingly, COVID-19 lockdown has created a surge in alcohol consumption. Even if alcohol has been considered “essential” in many countries, enabling dedicated shops to remain open while other businesses (such as bookshops, which is somewhat disturbing when thinking about the future of humanity), needs are apparently not met. Indeed, as any online retailers have a restricted offering, consumers have turned to dedicated startups to rise their spirits level.
- drink.ch saw a 300% surge of its online orders
- online cocktail brand Haus (which recently raised $4.5m to launch a subscription service) announced “the restaurant project” where 100% of the profits made during the pandemic will go to restaurants
- Drizly, one of the leader alcohol delivery apps in the US gets more traffic than ever, sales have grown by 535%!
WHY IT MATTERS?
As for meal kits, which sales have increased threefold ore more since the start of the lockdown, getting alcohol through delivery is a new way of consuming, disturbing old habits. This often comes at a cost to startups, with costly acquisition and low retention rates. Even more so for alcohol delivery which is often related to partying and not to “everyday consumption”. Will consumers keep on ordering (regularly) through these apps?
I don’t see a unique answer to this question, but rather more a “it depends” on subsequent questions:
- Are the alcohol delivery service better than online groceries? Have they been able to provide a good, fast, reliable experience during the crisis? C
- How long the crisis will last? The more, the better for those services as habits build with time.
- Is the offering vast enough?