This week’s wine news: Direct-to-consumer wine must solve the free delivery problem, plus Dry January in an age of booze moderation
• The problem of free delivery: The latest numbers show that direct-to consumer wine sales – from the winery to the wine drinker, without a retailer – have increased again in an otherwise flat market. Of course, direct to consumer still represents a tiny part of the wine market, in the low single digits. And what’s holding direct sales back? One study suggests it’s charging for delivery: Shoppers “increasingly expect free delivery of items they purchase on-line. … 75 percent of the roughly 3,000 U.S. adults polled want delivery to be free even on orders less than $50, up from 68 percent a year ago.” The story goes into fascinating detail about how expensive free shipping is for the retailer – it loses about $2 on every delivery – and that consumers will pay only $1.40 for delivery. The study doesn’t address wine specifically, but the points are well made.
• Dry January: Booze drinkers who don’t imbibe for a living are increasingly taking the month of January off, a fascinating development in the wake of of the slowdown in worldwide alcohol consumption. The link, from Self magazine, notes that Dry January is an opportunity to “reevaluate your relationship with alcohol.” This is an equally fascinating turn of phrase, since it implies that even moderate drinkers may be drinking too much and will benefit from giving up booze. I’ve noticed it on the blog — visitor numbers are down about one-third this month. Which raises an even more fascinating question: How did we ever get to this point?
• Marketing to non-drinkers: Ad Age reports that Dry January, as well as other trends toward less drinking, “is forcing bars, restaurants and alcohol brands to adapt. More low- and no-alcohol products are in development, and some, like Heineken’s new no-alcohol 0.0 beer, are already hitting store shelves. Drinking establishments, meanwhile, are adding fancier non-alcoholic cocktails, or mocktails, to their menus as they look to keep their drink revenues flowing.” Again, how did we get to this point? And why does no one in the wine business seem to notice?