Coronavirus spurs 'massive shift' in alcohol supply chain not seen since Prohibition: Drizly CEO

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Coronavirus spurs 'massive shift' in alcohol supply chain not seen since Prohibition: Drizly CEO
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Online alcohol deliveries are through the roof. And delivery service Drizly is reaping the rewards.

With people across the U.S. facing orders to remain in their homes, and bars and restaurants closed as part of the ongoing effort to quell the coronavirus outbreak, alcohol sales have gone through the roof.Alcohol delivery app Drizly says it saw sales explode in the last week of March, climbing 537% above the company’s expectations, which it calculates based on sales from the previous 8 weeks.

‘We need to lean on technology’Drizly, which is available on Android, iOS, and the web, works with more than 2,200 retailers across the U.S. to deliver beer, wine, and other alcohol to consumers via in-person drop-offs. The company says it’s working with its retail partners to come up with new ways to provide contactless deliveries amid the coronavirus pandemic.

And it’s not just Drizly that is reporting a massive increase in alcohol sales amid the coronavirus. According to research firm Nielsen, sales of alcoholic beverages in the U.S. were up 22% year-over-year in the final week of the March. Drizly, the CEO explained, makes its cash by charging retailers a licensing fee for the use of its software. Fees range from state to state based on alcohol regulations. Some states may require a percentage fee, a fee for each transaction, or a tiered fee structure.

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