The Grapevine

Wine Business & Marketing: Drizly, Part Two

March 11th, 2015

On Monday, we posted some thoughts about the on-demand delivery services that are partnering with local wine shops to win the hearts of “I want it now!” consumers. As you’d expect, there are supporters and detractors of the new services. Here is some additional information to help you decide. [level-members]

From the perspective of small shops, the pluses and minuses come down to an expanded audience and increases in sales vs. increased costs.

Some shop owners have seen an increase in the coveted younger market – the 21-35 age set can be tougher to reach through traditional marketing means, but are very tech savvy.

Others point out that having a driver at the ready is expensive, particularly when delivery demand is slow. This is particularly true in less densely populated areas.

Speaking of delivery demand, many feared that these services would appeal primarily to the late-night party crowd. In fact, the period of highest demand, according to one delivery service, is the post-work early evening shift.

Two other factors are discussed by most shop owners, as well: technology and regulations. Each of the delivery services requires a tech integration on some level – they have to know your inventory. This can be a burden for smaller shops, or shops with less invested in tools like PoS systems.

On the regulatory front, there are markets that simply do not allow on-demand delivery of alcoholic beverages.

Whether to add this to you marketing program depends to some extent on your market – both demographics and population density – and your appetite for trying new things.