The Meteoric Rise of Alcohol E-commerce and Humble Sea

The alcohol e-commerce market has been brewing. As bars closed in early 2020, online alcohol sales channels opened up like never before. While Liquor stores were deemed essential businesses, breweries and niche alcohol businesses had to pivot. Enter a rapid industry-wide expansion into e-commerce with direct-to-consumer brands approaching their customers with online storefronts, curbside pickup, or delivery speedy enough to keep your beer cold.

Local businesses such as Humble Sea Brewery adapted within the course a few week to go digital and have since grown faster than the beer can flow. Learn more about Humble Sea in Santa Cruz Works exclusive Flash Tour.

According to Johan Brenner, a general partner at early-stage SF-based venture capital firm Creandum

It seems like people were not drinking more, just shifting consumption to home and enjoying the convenience of home delivery while restaurants and bars were closed.

Zac Brandenberg, the CEO of online Wine marketplace DRINKS, told Crunchbase News.

The alcohol and spirits category was one of the last product categories to shift online despite being a more than $167 billion market and quite popular.
Alcohol companies are able to advertise online, but not everyone knows how to effectively develop online strategies, so there is still limited exposure.

While Humble Sea capitalized on a powerful local market and devoted customer base, the e-beer and alcohol market is becoming increasingly competitive. As major players catch wind and business valuations are frothing, the alcohol e-commerce market is one to watch.

Adrian DolatschkoApril 13, 2021