Pernod Ricard: Drinkers like deliveries, but bar life will see 'resurgence' as COVID vaccine rolls out
Many bars across the U.S. have been shuttered — or at least seen traffic sharply curtailed — by the COVID-19 pandemic, but stressed-out drinkers still found ways to quench their thirst for adult beverages.
And wine and spirits companies like Pernod Ricard (RI.PA) cite a boost from individual purchases as helping to partly offset a drop in overall alcohol sales during 2020.
As social distancing forced eateries and local watering holes to shutter, those working from home still craved cocktails and beers at the end of countless Skype (MSFT), Zoom (ZM), or Google Meet (GOOG) sessions.
That need sparked an “incredible rise in people enjoying cocktails at home. And I think people are looking for that convenience,” according to Pernod Ricard’s North American chief.
In fact, the company’s popular Kahlua brand skyrocketed 30%, “ because people are learning how to put cordials back together in cocktails,” Ann Mukherjee told Yahoo Finance in a recent interview.
Thanks to online sales and apps delivering booze from local shops, the alcohol industry got a much needed helping hand. Indeed, Pernod Ricard saw an across-the-board spike in off-premise purchases from a year ago: Malibu soared 38% while Glenlivet spiked 26%; Jameson jumped by 24%, and Absolut saw a 9% gain.
From this increased demand, there was also a spike in awareness of alcohol delivery platforms like Drizly, a Pernod Ricard partner since 2014.
According to Crunchbase, Drizly has raised a total of $119.6 million to date over 9 rounds. On August 20th, 2020, the company raised its latest funding from a Series C round.
“This pandemic really accelerated [web sales] in the alcohol industry and spirits industry,” Mukherjee told Yahoo Finance. “We've seen triple digit increases in ecommerce sales, whether it's pure plays, like Grizzlies or clicking collect with a lot of liquor stores,” she added.
The rollout of a COVID-19 vaccine is expected to bring life slowly back to normal — but certain trends may stick around a lot longer than expected. That includes wine and liquor deliveries, the executive said, since “consumers have really enjoyed being able to order online and having things delivered.”
However, hope is not lost for social gatherings to happen once again at bars, restaurants and hotel chains in the New Year.
“There will be a resurgence” in 2021, according to Mukherjee. “I think as more people take the vaccines and people can go out again, you're going to see a resurgence.”
Brooke DiPalma is a producer, booker and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma.
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