The COVID-19 outbreak forced most restaurants and bars to close to prevent the spread of the virus. This has affected revenues for many alcoholic beverage producers with craft beer producers seeing a significant reduction. This is due to the fact that the craft beer sector is highly reliant on on-premise sales and some producers do not offer bottled beer.
While there has been a decline in demand for high-end liquors there has been a surge in demand for budget and mid-priced alcoholic beverages that consumers can enjoy at home. Spirits have seen soaring demand in the US with tequila experiencing more than 75% growth and sales of canned cocktails rising by 93% in March. Sales of wine and beer also rose by 66% and 42% respectively.
Online providers have seen the biggest increase in sales as consumers follow social-distancing guidelines and avoid visiting premises in-person. Drizly, an online alcohol delivery provider operating in the US and Canada has seen a 300% rise in sales during the COVID-19 pandemic while Winc, an online wine club, saw a 578% increase in new members in March. Other platforms like Vivino and Vinopro have also experienced a surge in sales.
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