Despite the global pandemic negatively affecting so many sectors of the economy, the Australian wine industry has managed to thrive, thanks to a large degree to a surge in online sales.
The latest data shows that from 2019 to 2020 online sales of Australian wines grew by seven per cent, even as other channels of wine sales fell by three per cent. The first week of December and the week of Black Friday saw record numbers as far as online sales go, with a 42 per cent and 48 per cent respective growth in online sales on the corresponding weeks last year.
According to Ema Cregeen, founder of Gold Emotion, an online retail business that creates 24k gold infused wine, champagne, cognac and gin, e-commerce sales in the Australian wine industry are only going to continue growing.
“As Australia, and rightly so, takes its time loosening COVID restrictions and getting back on its feet post-2020, the wine and liquor industries will depend heavier on DTC sales to stay afloat,” Cregeen said.
“While direct-to-consumer sales encompass any means of selling directly to a customer, the ‘non-contact’ channels will continue to have the highest growth rate as people have already become so accustomed to a world of restricted contact and heavy reliance on online shopping.”
Creegen is one of the businesses that have benefited from the upswing of online wine sales. One product her business launched in the midst of the Melbourne lockdown, the Pure Gold Premium Botanical Gin, sold out twice before the end of 2020.
The latest projections from IBISWorld indicate that the online sales of Australian beer, wine, and liquor is set to exceed $1.5 billion in revenue in 2021, with an expected growth rate of 15.4 per cent.
“With nationally celebrated holidays coming up quick and in the first half of 2021, like Australia Day, Valentine’s Day, Easter and even Mother’s Day, I wouldn’t be surprised if we reach that $1.5 billion revenue mark earlier rather than later in the year,” Cregeen enthused.