E-COMMERCE IN SPIRITS

AN OVERVIEW

E-commerce currently makes up less than 5% of a spirit brand’s total volume, but it’s growing fast and holds big potential for emerging brands. Its value share is expected to increase by 17% by 2026.* Premium-plus products make up a large part of online sales and continue to grow. E-commerce is a valuable channel for both special releases and loyalty club offerings, and when used strategically, it offers a long-term brand-building opportunity that goes beyond simply increasing sales.

E-COMMERCE MODELS FOR SPIRITS

Distillery-to-Consumer (DTC)

Description: The only model that allows distilleries (where legally permitted) to ship directly to consumers, bypassing traditional distributors and retailers.
Benefits: Higher profit margins and more control over branding.
Considerations: Only available to brands running a distillery in the United States. Currently legal in fewer than 10 states and typically requires your team to handle compliance, packing, and shipping.
Examples** VinoShipper, Spirits360

Website E-Commerce Partners

Description: Enables a “Buy Now” function on your brand’s site, routed through a partner who facilitates retailer fulfillment.
Benefits: Low-risk entry into e-commerce; partners manage shipping and provide customer service.
Considerations: Not a true DTC model, and margins are impacted by retailer markups. Product must be delivered via a distributer to the retailer. Limited visibility unless paired with broader marketing efforts.
Examples** Big Thirst, Accelpay

Additional Web Marketplaces

Description: Online retail sites with large customer bases (similar to “Total Wines” online), often featuring brands across states.
Benefits: Significant consumer reach and marketing options to improve product visibility.
Considerations: Costly to participate in; results depend on a brand’s marketing spend and can take time to yield a return.
Examples** Reservebar, Flaviar

Super Retailers

Description: Brick-and-mortar stores with online sales, where spirits brands follow traditional retail protocols but benefit from the store’s digital reach.
Benefits: Streamlined process for in-store and online promotions; support from retailers to boost brand recognition.
Considerations: Requires brand buy-in from the retailer and distribution setup in relevant states.
Examples** BevMo, Sip Tequila

Delivery-on-Demand

Description: Third-party apps working with retailers for rapid delivery, often within an hour.
Benefits: Offers instant access to consumers and useful data dashboards for brand insights.
Considerations: Primarily used for lower-cost items; brand visibility is limited unless tied to specific promotions.
Examples** GoPuff, Uber Eats

KEY CONSIDERATIONS

State Compliance

E-commerce options for spirits are highly regulated, and no single solution is available for all 50 states. Brands must consult state and local laws before implementing DTC or other e-commerce models.

Phased Approach

Emerging brands may benefit from experimenting with a mix of these models to learn what works, with flexible contracts allowing brands to pivot based on results.

Need Help?

E-commerce is evolving quickly and can be complex. We’re here to help tailor an e-commerce strategy that aligns with your goals and budget, whether you’re new to the channel or looking to expand your digital footprint.

*Source: IWSR.
**Suggested platforms are for model recognition only and do not constitute endorsement or recommendation.