E-commerce and spirits: consumption occasions drive spirit drinkers

According to the annual research by IWSR Drink Market Analysis for 2022, the e-commerce market for spirit products is poised for significant growth: it is estimated that by 2025, it will represent around 6% of all off-trade spirit sales volumes (a growth of over 4% compared to 2018).

Another significant finding from the research shows that the distinctions between different e-commerce channels, as well as between online and offline purchases, are becoming increasingly irrelevant for consumers: the boundaries between sales channels for spirits are becoming more blurred.

This means that there is no standard model; rather, consumers are expected more than ever to switch between channels and retailers based on their specific needs at any given moment. In summary, it is the consumption occasion that drives the purchase decisions of spirit drinkers.

On Amazon.it, the data for 2022 fully support the IWSR research: indeed, the spirits segment (consisting of Sparkling Wine & Champagne, Gin, Rum, and Whisky) garnered approximately 2.5 million searches, showing a 7% increase on average across sub-categories.

Witailer, one of Italy's largest consulting agencies for selling on major marketplaces and e-commerce platforms, in collaboration with Mr Dee Still, the world's first shoppable magazine in the beverage industry, conducted a follow-up analysis focusing on the peak season.

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Christmas and Black Friday drive the category

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It's a seasonal category, remaining fairly stable throughout the year before reaching its highest peaks during the months of October, November, and December: the total search volume during this period reaches 1.2 million, representing almost 50% of the entire segment. This seasonality is also evident on Mr Dee Still. Specifically, the three months saw an increase of about 140% - compared to the previous three months - both in terms of revenue and the number of orders.

On both platforms, it's interesting to note that of the two major events driving the entire period, Christmas is twice as relevant as Black Friday for the spirits segment: on Amazon.it, searches during the Christmas period increased by about 80,000, while on Mr Dee Still, the month of December saw a 120% increase in revenue compared to the previous month.

The first difference between online purchasing platforms lies in the type of searches during the Christmas period:

• On a specialized player like Mr Dee Still, one of the highest-selling categories in terms of value is gifting - including both special packs and advent calendars - for both standard products (such as the Campari Spritz Kit) and more premium alternatives;
• On Amazon.it, searches are less tied to the holiday, focusing on both generic searches and branded searches (which include the name of a specific brand within them).

Once again, there is confirmation that the distinctions between different e-commerce channels (and also between online and offline purchases) are becoming increasingly irrelevant for consumers, who turn to specific players depending on their specific needs.

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Emerging searches and new trends

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During the last three months of 2022, new searches emerged - or exponential increases in searches already present in previous periods - which could represent the beginning of real trends.

• In particular, the increasing searches mostly revolved around branded searches, referring to specific brands: these could be new and emerging brands, as well as existing brands investing in brand awareness activities.
• There are also some similarities on Mr Dee Still, which records excellent sales performance for Bumbu, one of the most famous rums from Barbados on the market.

To consolidate their online positioning, it remains crucial for brands in the sector to dominate specific online channels - both on general platforms like Amazon and on pure-players like Mr Dee Still - leveraging an integrated strategy based on content optimization and advertising.