With billions of people now under some form of lockdown due to the Covid-19 pandemic sweeping the world, there have been major changes in the way people are shopping.
Bars, restaurants and cafes are all shut down in the UK, in much of Europe and across some of North America among other regions. With everyone housebound, wine aficionados have had to find new ways to ensure they have enough in. And naturally this has meant a huge uptick in online wine sales.
Online wine sales are rapidly increasing
The wine industry is going through a patch of sales that is rivalling, if not beating, the Christmas rush. For example, US based wine club Winc told Forbes that it has seen an increase of 578% in new members week over week. Sales are also rising fast, with a 49.6% increase in consumer direct sales.
According to Nielsen, wine sales in the US were up by 27.6% in the week ending 14 March 2020, compared with the same week in 2019. Wine app Vivino is also showing massive increases, with its highest recorded sales date on 13 March 2020. In both the US (162%) and Italy (282%), the app has seen a huge increase of merchandise sold.
Now that the majority of people are working form home and having to enforce strict social distancing measures, home consumption of wine will continue to rise. And alongside this will be a wider take up of ecommerce for the wine sector. While wine sales online have always been relatively popular, they’ve lagged behind sales in pubs, bars and restaurants. As this is temporarily halted, we will continue to see the ecommerce sector for wine sales expand.
Some sellers are struggling to keep up with demand
Other smaller wine companies in America have also witnessed sales take off rapidly. Gold Medal is an independent wine club that curates limited production wines from California. Owner David Chesterfield explained to Forbes that the company has seen an increase in revenue of $517,800 in 28 days when compared with the previous 28 days. This is more than a 200% increase. Some small wine shops are hastily moving online for the first time, in order to keep employees paid and businesses going.
Here in the UK, the situation is much the same. Since 21 March, when the bars, restaurants and clubs were formally closed by the government as part of the nation’s efforts to slow the spread of coronavirus, sales of wine and other alcoholic drinks continue to climb.
Some online wine sellers have had to temporarily pause orders in order to keep on top of restocking. Naked Wines told the Times that: “… we’ve made the decision to temporarily pause accepting orders while we work through existing ones.” Sales for French and Italian wines for the company jumped to 68% last week, and English wine sales are also increasing.
It remains to be seen how online retailers will cope with the surge in demand, and how much of these sales increases are down to stockpiling. Pubs are beginning to sell alcohol as takeout as part of creative ways to keep in business, and this could bring online sales down again.
However, at Ideal Wine Company, we believe this could be a turning point for wine and ecommerce. As people become used to buying wine online during the pandemic, it’s highly likely that this will continue when restaurants and pubs begin to open their doors again.