Technology has the power to completely transform the way we approach life, business, and retail. For wineries, it offers a unique opportunity to enhance customer relationships.
Today's consumers are engaging with brands in unprecedented ways. With so much of our daily activities taking place online, it's no surprise that consumers are now accessing information and advertising through their smart devices and computers. This era of convenience has led companies to capitalize on direct-to-consumer sales models, with the food and beverage industry also embracing this trend in various ways.
Firstly, there are convenient direct-to-consumer delivery apps such as Uber Eats and Postmates, making it simple for individuals to purchase food and beverages online and have them delivered straight to their doorstep. Additionally, the rise of direct-to-consumer alcohol sales has been notable in the adult beverage industry, with a particular focus on the flourishing wine sector.
One of the reasons the wine sector is performing well is that state regulations are a little more relaxed compared to spirits. Most states will allow some form of online distribution which we will cover shortly. What’s impressive are the statistics surrounding online wine sales. In 2017, online sales of wine totaled $2.69 billion. The volume was 5.78 million. That’s a 15% increase from the previous year. These numbers are only expected to go up.
Selling wine online opens up opportunities to boost brand recognition and reach a wider audience, overcoming the limitations of traditional advertising methods like print or TV. Additionally, gathering customer data from online purchases allows you to understand how customers discover your site, their browsing habits, and purchasing preferences, providing valuable insights to enhance your marketing strategies.
We’ve talked before about some of the start-ups shaking up the alcohol beverage industry and which ones you should be watching. Some of the companies that have made the list are excellent examples of business strategies that are finding success online.
Vivino is fully embracing online and mobile app sales of wine, cultivating a large community centered around reviews. Their innovative business model enables customers to leave reviews and make online wine purchases based on meal pairings, regional selections, or favorite white or red wines.
Cavissima offers the convenience of purchasing high-quality wine online. For those without easy access to a local wine cellar, Cavissima can assist in finding one nearby. These cellars play a vital role in the aging process, allowing you to customize and enhance the flavors to suit your personal taste preferences.
A monthly subscription service and direct-to-consumer retailer of wine, WINCA provides personalized wine selections based on a user's preferences and purchase history. Their innovative algorithm continuously enhances recommendations for future purchases.
Online wine sales don’t exempt you from complying with state and federal laws. There are a few licenses you’ll be required to have:
Alcohol Dealer Registration
A winery license from your state
A retailer’s state license
Shipper’s license
A shipper’s license must be obtained from each state you plan to ship. And, it’s important to note that just because your county or state allows you to sell locally doesn’t mean you can ship online. You’ll need to do your due diligence. The Wine Institute offers an interactive map with a breakdown of information by state.
The United States Postal Service does not allow the shipment of alcohol. They are a federally run program and are restricted by a law from 1909. The law bans the shipment of explosives, harmful substances, and “all spirituous, vinous, malted, fermented or other intoxicating liquors of any kind.”
To get your wine shipped, simply utilize UPS or FedEx. Begin by setting up an account with your preferred carrier and completing an alcohol shipment agreement. Each carrier will detail packaging guidelines to prevent any damages or spills during transit.
It’s also required of your winery to fix a particular label identifying the contents of the package is alcohol. There is also the requirement to have a 21-over signature to ensure you aren’t selling your product to a minor.
To ensure compliance with legal age requirements for purchasing alcohol online, companies have developed sophisticated technology solutions to help wineries verify the age of buyers. These online tools seamlessly integrate with websites to confirm customer IDs and prevent the sale of products to minors. By comparing data against extensive records, these services offer a quick and reliable age verification process. While some states mandate the use of these services for online sales, others may require the use of state-approved age verification providers.
Navigating the selling of alcohol is complex by design. At Brindiamo Group, we have years of experience helping entities of all sizes find success in the alcoholic beverage industry. Visit our website to learn more.