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12/14/2021

Drizly Report: BevAlc Retailers Optimistic About Growth in 2022

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Uber-owned e-commerce and on-demand delivery platform Drizly released its third annual “BevAlc Insights by Drizly Retail Report” based on survey data gathered from over 500 alcohol retailers across the country in November. Among the report’s findings, Drizly found that retailers:

  • expect strong holiday sales this season as 73% of those surveyed expect sales to meet or exceed last year’s lofty holiday benchmarks, despite reports of champagne shortages; 
  • are concerned about supply chain impacts on product availability and price, but are optimistic about 2022; and
  • have a renewed interest in craft beer and believe CBD-infused, cannabis-infused and non-alcoholic products have a lot of potential.

Organic and natural products, along with locally produced beer, wine and spirits, are likely to garner more shelf space in 2022, according to the report, which also includes 2021 sales data from the Drizly platform. On the other hand, hard seltzer's meteoric rise has slowed, though retailers remain “strongly bullish” about the future growth of ready-to-drink cocktails.

[Read more: A BevAlc Category Activation Gallery]

"We know alcohol retailers have a strong pulse on consumer behavior and demand as they see trends and shifts first-hand in their stores day in, day out," Cathy Lewenberg, CEO at Drizly, said in a recent media release, adding that the company has observed its retail partners also leveraging Drizly's data and insights to help drive decision making when it comes to stocking new products. “This has helped form our annual retail report with a deep understanding of what's to come in 2022."

Other notable findings from the report include:

  • Tequila may overtake vodka sales in 2022. Nearly 80% of retailer respondents said they plan to stock more tequila in the coming year, putting it on par with bourbon and ahead of vodka. It mirrors sales trends on Drizly, where tequila's share of spirits sales has increased 13% over the last few years, while vodka's share has decreased by 2%.
  • People want to feel good about the beverages they consume. In terms of important product attributes, 60% of retailers surveyed cited “organic and natural” as non-price-related attributes that is increasingly influencing their purchasing decisions, especially for wine. Furthermore, health-conscious products came in second (57%), despite the fact that 90% of Drizly retailers now stock non-alcoholic beer, wine and other alternatives, and the share of such products on Drizly has increased by 120% since 2020.
  • Craft beer may reclaim shelf space from hard seltzer in the “canned wars.” Although half of the retailers polled expect to carry more hard seltzer next year, 57% expect to devote more shelf space to craft beer. Only 8% of retailers expect to stock less craft beer in 2022, compared to 23% who expect to stock less hard seltzer.
  • Cannabis- and CBD-infused products are proving to be very popular among retailers. Over half of retailers said they believe cannabis- and CBD-infused beverages have the greatest growth potential in the industry. That is nearly double those who cited non-alcoholic products (26%).

This third BevAlc Insights report is based on a representative sample of more than 500 adults who manage or own an independent liquor store and represent both non-Drizly partners and current Drizly retail partners. Respondents were recruited from Drizly's database and results were gathered in the form of an online survey in November. Drizly partners with retailers in more than 1,700 cities to bring their shelves online.

For more survey results and insights, download the full BevAlc Insights by Drizly Retail Report.

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