Tequila and hard seltzers are expected to gain more shelf space in the US over the next year, according to a survey of independent retailers by alcohol e-commerce platform Drizly.
The Drizly 2020 Bevalc Retail Report surveyed more than 500 adults who manage or own independent alcohol stores during October 2020, including retailers both on and off the Drizly platform.
Sales on Drizly’s platform grew 350% in the year to date compared to 2019. The platform also saw a 30% increase in the average order value compared to last year.
Nearly two thirds (64%) of retailers are planning to make more room for hard seltzers in the future. Craft hard seltzer brands are predicted to take a fair share of the category, Drizly noted. When asked which brands they plan to stock next year, White Claw came out on top, followed by Truly and vodka-based ready-to-drink (RTD) brand High Noon.
The survey also noted that Tequila (71.7%) inched slightly ahead of ‘longtime growth champ’ Bourbon (70.89%) as the top spirit that retailers expect to stock more of in the next one to three years. Drizly said this marked a ‘significant change’ as last year when retailers were asked a similar question, Tequila placed 30 points behind Bourbon. In third place was vodka, followed by Scotch and mezcal.
Meanwhile, Tequila was also the top trending category for retailers next year, followed by hard seltzers, RTDs and mezcal. Drizly noted that mezcal is expected to take more space on independent retailers’ shelves with the category stepping out of Tequila’s shadow.
On Drizly’s platform, Tequila has grown its share by 22% over the past year, while mezcal’s share has risen by 57%.
The report also found that 70% of independent retailers said they had experienced greater in-store sales since 1 March 2020, while 78% saw higher online sales.
Furthermore, nearly half of respondents said chain retailers (49%) are their biggest competition, followed by local independent retailers (45%) and major grocery delivery services (32%). Drizly said the rise of major grocery delivery services as a major competitor was a 28-point increase over 2019, and ‘significant enough to rank below only alcohol chains and other independent retailers’.
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Author: Nicola Carruthers