Key Takeaways
• DTC brands have mixed results, but the DTC alcohol industry is thriving
• Data going back to December 2018 shows wine subscriptions have clearly boomed amid the COVID-19 era
As stay at home orders become the norm nationwide, people have been finding their own ways of coping with the increased time at home. DTC brands have had mixed results during this COVID-19 crisis, where despite the delivery model suiting a shelter-in-place economy, consumers are spending less.
While some have picked up new instruments, taken up yoga, or decided to finally watch all the shows they’ve been putting off, many others have decided that alcohol is the best way to cope with a pandemic. In order to see for ourselves how alcohol sales have been affected by COVID-19, Edison Trends took a deep dive into over 3,700 wine subscription transactions going back to December 2018 to understand more.
Figure 1a: Chart shows estimated wine subscription orders by week from December 30, 2018, to April 11, 2020, according to Edison Trends. This analysis is based on over 3,700 transactions from Bright Cellars, Dry Farm Wines, Firstleaf, Mash&Grape, Revel Wine, and Winc. Note: the highest weekly number of orders was set to 100, and all other values were scaled accordingly.
For wine subscription services Bright Cellars, Dry Farm Wines, FirstLeaf, Mash&Grape, Revel Wine, and Winc, business is booming. When compared to shifts in wine subscription orders since December 30, 2018, the jump in orders from the last few weeks is particularly impressive. Online wine subscription orders have skyrocketed, with orders the week of April 5 up 196% over the pre-March average in 2020. Prior to March, the biggest week for subscription orders over the past year had been December 8-14 2019; the week of April 5 was 61% higher.
For access to the full report which includes more insights including year-over-year sales comparisons and wine merchant market share, please contact us at bizdev@edison.tech.
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*The data shown is based on a sample of anonymized and aggregated e-receipts from millions of consumers in the United States.