Fourth annual nationwide survey from BevAlc Insights by Drizly finds alcohol retailers feeling confident about online gift giving despite inflation concerns, bullish about celebrity brands, and optimistic about craft beer and red wine
BOSTON, Nov. 16, 2022 /PRNewswire/ -- Drizly, an Uber Company (NYSE:UBER) and a leading beverage alcohol e-commerce shop, today released its fourth annual BevAlc Insights by Drizly Retail Report. The report casts a light on anticipated holiday shopping behavior, what's likely to fill shelves next year, and driving influences on inventory decision-making.
The Retail Report, derived from a nationwide survey of alcohol retailers and supplemented with sales data from Drizly, finds adult beverage retailers more concerned about lingering supply chain issues than rising prices, expecting online gift giving to tick up this holiday season, stocking (even more) tequila, ready-to-drink (RTD) cocktails, and hard seltzers in 2023, and seeing big potential for craft beer, red wine and celebrity brands.
More on the report's findings:
- Supply chain remains the biggest headwind; while inflation concerns loom, retailers see consumers still willing to pay for delivery. While 43% of retailers cited supply chain issues as their biggest concern for 2023, 63% of those surveyed believe that inflation has affected their sales this year. As a sign of pandemic-formed shopping behaviors' resilience, 73% of respondents reported that shoppers are still willing to pay for the convenience of delivery.
- Bubbly (albeit less pricey), bourbon and tequila expected to top holiday gift lists; online gifting poised to increase. While bubbly may reign supreme among gifts, 59% of retailers anticipate shoppers to opt for less expensive Champagne and other sparkling wines this holiday season. Transactionally, online gifting is expected to grow this year: a higher share of retailers (40%) expect more online gift orders than do not (32%).
- 2023 crystal ball: tequila's torrid growth showing no signs of slowdown; craft beer and red wine may see comebacks. The agave juggernaut should keep rolling: 64% of retailers surveyed are planning more incremental shelf space for tequila than for any other spirit. What's more, 35% of respondents cited craft beer as the top trending category for 2023, and reds finished first among wine segments slated for more shelf space next year.
- Portable drinks are here to stay: RTDs and hard seltzers can share the spotlight, beer will keep driving non-alcoholic (NA) growth. In a landslide, 71% of respondents said that RTDs and hard seltzers have permanently changed how and where they stock products. Signaling space for both, even as 63% of retailers expect to carry more RTD inventory next year, 49% said the same for hard seltzers. And as portable, single-serve drinks continue to soar, 61% called out NA beer as the non-alc product they're planning to stock most in 2023.
- Customers speak loudest and celebrity ownership is mattering more. Notably, 71% of retailers identified customer feedback as the biggest influence on product stocking decisions, besting distributor recommendations. When asked about special attributes that matter most, celebrity ownership climbed into second place this year with 54% of retailers citing star power as a reason to carry a product.
"This year's report shows how remarkably dynamic the beverage alcohol industry is right now in every aspect - from emerging segments and the evolution of online shopping to what influences purchase decision-making," said Cathy Lewenberg, Drizly's Chief Operating Officer. "With insights coming straight from our Retail Partners, who operate on the frontlines with consumers, it gives us an in-depth look into beverage alcohol's near-term future, and perhaps, longer-term outlook."
About Survey Methodology
The fourth annual BevAlc Insights by Drizly Retail Report is based on a representative sample of more than 250 adults who manage or own an independent liquor store and represent both non-Drizly partners and current Drizly Retail Partners. Respondents were recruited from Drizly's database and results were gathered in the form of an online survey. This survey was fielded in September-October 2022.
About BevAlc Insights by Drizly
BevAlc Insights by Drizly is a resource for data and insights about the beverage alcohol industry and the growing e-commerce sector. Leveraging Drizly's unique data and access to experts and partners throughout the industry, BevAlc Insights forecasts category and market trends, shares consumer insights, and showcases operational successes to support and empower a network of retailers across the U.S. and Canada. Retailers interested in learning more about growing their business and optimizing with on-demand alcohol delivery on Drizly's e-commerce platform can find more information at joindrizly.com.
Drizly, an Uber company, is a leading beverage alcohol e-commerce shop. Millions of consumers of legal drinking age turn to Drizly to get the best drinks for the moment, delivered. With one of the widest selections of beer, wine, and spirits, Drizly offers convenient delivery options with a tailored shopping experience based on what consumers are shopping for - whether that's a gift, a big order for an event, or drinks for a casual night at home. Today, Drizly partners with thousands of retailers and suppliers to help them to reach new customers, tap into key market and customer insights, and diversify their business to grow sales. As the industry leader, Drizly is building the best shopping experience for beverage alcohol in a regulatory compliant manner that promotes a safe drinking culture. Learn more at Drizly.com, download the Drizly app (App Store and Google Play) and follow Drizly on Facebook, Twitter and Instagram.