How The Pandemic Transformed Liquor Retail

When COVID-19 began, it was the end of the era we lived in for most of it. For most retailers, it was when they realised buyers would only be able to enter their shop for a short time. Many businesses remained closed, but we didn't know it brought a new change. The change was going online, even for the Liquor industry! This shift presents a unique opportunity for those who can create innovative ways to sell liquor in the Australian market. If you're ready to seize this growth and innovation potential, click on our link, Repshare, and be part of this optimistic future!

The lockdown kept us all at home when the pandemic started. This affected many retail and other businesses, as people were mandatorily stuck inside their homes, and no one could shop for clothes or even liquor; retailers were satisfied, but they saw the right opportunity to change their modes of selling.

The increase in online sales 

The liquor industry’s pivot from physical to online sales was a significant shift during the pandemic. With restrictions and closed shops, many platforms and brands began selling on their websites. This transition allowed retailers to adapt to new selling methods and underscored the support from online platforms in promoting their brands. The increased awareness of online portals facilitated the promotion of many brands. Drinks Network and their selling partners seized this opportunity, providing a platform for the Australian liquor market to sell their spirits.

The increase in Online sales

During the pandemic, online alcohol sales in Australia saw a significant surge. A study by Roy Morgan revealed that online alcohol purchasing doubled from 3.7% in 2019 to 8.8% in 2020. The need for convenience and safety and the growing acceptance of e-commerce among consumers drove this increase. This shift reassured consumers that they could still enjoy their favourite drinks from the safety of their homes.

Direct-to-Customer Model 

The direct-to-customer (DTC) model emerged as the most effective way to connect with consumers and drive sales. Retailers quickly realised the potential of this approach, leveraging email, websites, promotional messages, and their portals to engage directly with their target audience. This success story of the DTC model is a testament to the industry’s resilience and adaptability, offering a promising outlook for the future. 

Fun Fact Australian wineries saw a boost in direct sales through their websites. It allowed them to maintain a steady revenue stream despite the closure of cellar doors and tasting rooms. Some wineries even offered virtual tastings to engage customers and promote their products.

Virtual experiences and tasting

Since the pandemic confined us all to our homes, touring a vineyard or a distillery was not possible anymore. So, it was the right time for the brands to take a guided tour to educate their customers online about the safety measures and necessary measures to meet the standards. Virtual tasting sessions, mixology during World Cocktail Month, and more were moved online so that spirit enthusiasts could stay connected with the latest edition. This approach also helped the retailers expand their reach to customers worldwide.

Fun Fact Yarra Valley winery Innocent Bystander launched a series of virtual wine tastings that were highly successful and attracted participants from across the country

Digital marketing and storytelling 

Social media and other platforms have become massive platforms for retailers to narrate their stories about their brands, values, culture, processes, and heritage. This storytelling and connecting with the consumers helped them increase their sales even more than before. Many brands associated with the influencers to help them continue narrating their stories online and show their commitment to serving their customers. 

Innovations in delivery

As more and more customers shifted to online purchasing, retailers had to combat unique and contactless doorstep delivery options, from securing their delivery process to moving to third-party contracts to deliver the spirits on time and increase their customer reach.

Fun Fact In Australia, companies like Jimmy Brings and Tipple ensured timely alcohol delivery during the pandemic. These services offered same-day delivery of a wide range of alcoholic beverages, catering to the increased demand for convenience

Regulatory Changes 

New norms and regulations were introduced to support local, small-run businesses or bars/ restaurants. As people were still adapting to the COVID-19 norms, many restaurants were allowed to start selling food either using delivery apps or they could allow them to pack for takeaways. This enabled restaurants to keep safety measures in mind and make some sales. Similarly, they permitted cocktails and various spirits to be sold for takeaway purposes.

Fun Fact Similar regulatory changes were implemented in Australia. The New South Wales government allowed restaurants and bars to sell takeaway alcohol with food orders, providing much-needed support to the hospitality industry. These changes helped businesses stay afloat during the pandemic and opened up new sales channels that are likely to persist post-pandemic.

Final Thought – 

COVID-19 came with forced measures to ensure that we all were kept safe from the virus until immunised. However, the various businesses, on the other hand, started struggling to maintain their business during this period. To make a comeback, they have to shift to online portals. Make use of selling their products or services online, takeaways, arranging for various delivery options to ensure that the drinks are delivered on time, staying connected with the consumers via storytelling or staying strong on social media or email, or using the DTC approach to let the customers buy their favourite spirits. These tactics helped online liquor retailers survive during the pandemic; now that we are back to the COVID stage, we can see that the online market is still selling products more than ever. This has given small and independent producers opportunities to come and share their stories in the virtual world and connect with real consumers. So, if you can connect with consumers and help the brands, whether big or small, you can connect with the market players with our link Repshare and learn about all the opportunities available.