Alcohol’s three-tier system slows ecommerce and dates the industry

• Between 2015 and 2018, US alcohol consumption declined three straight years, with beer consumption down five consecutive years.

In industry after industry, digital is gobbling up market share. In wine for example, US online sales gained over 20 points of share within two weeks of lockdown. What it took grocery in the UK 20 years to achieve, US wine did in 21 days. And fintechs offer many of the same benefits – speed, innovation and digital distribution.

Normalizing sobriety in an alcohol-dependent society is difficult, especially when individuals are up against a trillion-dollar industry pumping out advertisements and making it seem like the only way to experience life is with a drink in your hand. Marketing budgets for alcohol brands are expected to rise to $7.7 billion by next year, and the indu... See more

Entrepreneurs looking to enter the market have an opportunity to re-write the rules. This means focusing on the end consumer — marketing and delivering direct to her. It also means creating better beverages and new spaces/contexts for drinking. Today’s customer wants something that’s enjoyable, conscionable, and just a bit healthier.

The means of distribution changed. It is very easy to generate revenue when you’re the only player in town. That changed with the internet and newspapers took a very long time to fundamentally change.

What normally took retail-first brands 3-5 years to achieve by showing sales data via farmers markets and local grocery chains, can now be achieved in 1-2 years by online-first brands.