Wine has long been a leader in alcohol e-commerce, with spirits taking second place. A lot of this has to do with legal frameworks that have been in place for decades: Jeff Carroll, General Manager of Avalara for Beverage Alcohol, He told the Brewbound podcast That wineries, through online sales to 48 states, can reach 97% of the US population. By his scale, breweries have access to only 17% of the population and are already facing an uphill battle: Beer has lost a lot of space in its serving quota in recent years, with spirits Far superior to this class.
Southern Glazer’s new digital agency has the ability to expand this online dynamic in a way that favors its brands. DRAM would like to see their brands prominently placed on online store websites, in featured ads on market landing pages, or at the top of web search results for phrases like “bourbon delivery near me.” Google Trends results Show searches for “liquor delivery near me” outnumber searches for “beer delivery near me” over time, likely because consumers know they can find beer at more physical retailers than they can in spirits. As a snapshot, it indicates that online search interest matches how sentiment grows in real-world sales.
“It’s almost like what you think of in terms of bricks and mortar, where you want [your products] At eye level,” says Mansberger. “So you create a website — how often is a particular product viewed? It’s the same online, given how much physical space the brand has.”
The number of times a brand is viewed and purchased online easily translates into millions of dollars in revenue. E-commerce alcohol sales are expected to account for 7% of all alcohol transactions by 2024, according to John Kelly, CEO of Craftpeak, a company that provides digital sales technology and services to breweries. Craftpeak estimates that total online alcohol sales will increase by $12 billion in that period.
That’s as good a reason as any to speed up sales now. Brandy Rand, Chief Operating Officer, Americas, IWSR Beverage Market Analysis, At Vinexpo New York in June 2020 The IWSR expects wine to account for 44% of e-commerce alcohol sales in the United States by 2024, with spirits at 39% and beer at 12%. Ready-to-drink products, which the IWSR uses as an aggregate product for both solid carbonated drinks, canned spirits-based cocktails, and some other flavored malt beverages, will account for 5%.
DRAM, with financial support from Southern Glazer’s, can ensure that its brands are displayed frequently and are prominently featured. Southern Glazer’s is the 11th largest privately owned company in the United States. According to the ratings of Forbeswith revenues of $21 billion. DRAM will do a bit of mindfulness not only through listing online stores but through automated ads, which is a way of targeting ads to specific demographics and using algorithms to place those ads in different digital spaces automatically. This means that a shopper in the brand’s target consumer demographic may encounter an ad for that brand on Facebook or on a blog relevant to their interests.
If the liquor market operates like a digital store, DRAM will use digital advertising tools to ensure its products have the online equivalent of aisle end caps, central placement on refrigerated shelves, and great flyers. Online, these ads take the form of banner ads, featured products, or at the top of search results.
DRAM’s efforts will complement the existing B2B online ordering platform, Proof, offered by Southern Glazer’s Launched in September 2020. The directory made it easy for retailers to order products from the distributor; With DRAM, the company will work to ensure that customers demand these products from retailers.