How does online alcohol delivery work?
The online delivery market is dominated by the large supermarket chains, as well as several smaller independent companies.
Some of the main ones are:
- Endeavor Group (Woolworths): Dan Murphy’s, BWS, Jimmy Brings
- Coles Group: Liquorland, First Choice, Vintage Cellars
- Smaller retailers: Naked Wines, Boozebud, Metcash, Cellarbrations, Thirsty Camel, Tipple, Liquoroo.
Other businesses, include online food delivery services, such as Uber Eats and Deliveroo, are also competing for market share.
The three main models of delivery
- Rapid delivery: Alcohol advertised as arriving within 30 minutes of order
- Same day delivery: Alcohol ordered for delivery that day, sometimes - but not always - within a few hours
- Next day delivery: Alcohol ordered for delivery the following day or later.
The impact of COVID-19
When COVID restrictions and lockdowns forced people to spend more time at home, alcohol retailers responded by heavily promoting their ability to deliver alcohol directly to people’s doorsteps; while smaller bars and pubs opened local takeaway and alcohol delivery options.3
As a result:
- Coles online alcohol sales increased by 90% from the second half of 2019 to the second half of 2020.3
- Endeavour Group (Woolworths) had online alcohol sales growth of 50.2% in the second half of 2020.3
- In 2020, 11.3% of all alcohol purchased in Australia was bought online. This number more than tripled the 2019 figure of 3.5%.5
Although it seems logical for online delivery to increase while hospitality is shut down, there‘s concern over the aggressive marketing tactics used by alcohol retailers to promote their services during COVID-19.3, 4
One study found alcohol marketing posts penetrated Facebook and Instagram feeds every 35 seconds, promoting:
- easy access to alcohol without leaving the home
- buying more alcohol
- using alcohol at home to cope, survive or feel better during the uncertainty of the pandemic.6
This is problematic since alcohol can worsen the negative impacts of social isolation for some people and it should never be promoted as something to help you get through tough times. Increased drinking can make financial and social stresses worse, and contribute to mental health issues, such as anxiety and depression.4, 7
Increased alcohol use in the home has also been linked to family violence, abuse and neglect.4, 7-9