Rise of online wine subscriptions

More than perhaps any other generation before them, millennials are all about convenience. These consumers don’t rent DVDs, they stream Netflix; they don’t order from a restaurant, they have ÜberEats deliver it to them. Alcohol retailers aren’t missing out, increasing their online presence and range, and offering delivery rates comparable to other industries.

Direct-to-consumer alcohol sales with delivery is by no means a new concept; indeed, online alcohol sales in Australia have grown at an annualised 14.1% since 2014. In the total alcohol off-premise environment in Australia, they now represent 4.6% of sales, with that growth rate expected to increase to 16.5% this year.

But whilst wine delivery services have been active for many years now, some businesses have taken the model a step further: subscription. This model takes advantage of two factors key to millennial’s consumer habits: the overcoming of a knowledge barriers when selecting wines, and convenience.

Online wine service Good Pair Days offers 3, 6 or 12 bottle subscriptions.

Many consumers will have an idea of the style of wine they like, or the taste profile they enjoy, but can find it difficult to translate this into selecting a particular bottle. Some services, such as Australian online retailer Good Pair Days, allow consumers to take a quiz about their preferences, and then have wines recommended to them for their subscription. This aspect can be particularly important for international wines, where consumer knowledge of appellations and Protected Geographical Identification wines can be limited. Australians approach wine through its varietals, and may not always know which are contained in a bottle of Bordeaux for example.

Subscriptions can therefore be an important educational opportunity for consumers, not only for appellations in general but for specific brands as an entry-point for drinkers. It is also a chance to develop brand loyalty through re-ordering of the same product in future deliveries.

Subscription adds a further element of convenience to the wine delivery model, in that consumers do not have to actively participate in the wine selection process on a regular basis (although can if they wish to), and can often receive the wines on a schedule of their choosing (depending on their typical consumption). Overall this increases the frequency of sales, demonstrates value and convenience to the consumer, and encourages the consumer to repurchase in the same retail space.

Working in partnership with a subscription retailer can therefore be a great way to introduce your wines to Australian consumers, build your brand awareness and ensure ongoing sales.