Dive Brief:
- Instacart announced on Monday it is now offering same-day alcohol delivery from 180 Meijer stores, expanding the total footprint of its service to reach more than 85 million U.S. households, or nearly 75% of total U.S. households.
- Out of its more than 700 retail partners, Instacart now counts Meijer among the more than 300, including Aldi, Albertsons and Costco, that use the company for alcohol e-commerce across 17,000 stores.
- Instacart said it plans to launch alcohol delivery in Mississippi in the coming months after recently adding Iowa to its growing list of areas where it offers the service.
Dive Insight:
Instacart is looking to continue capitalizing on the online alcohol sales that have poured in during the pandemic. Chris Rogers, Instacart's vice president of retail, noted in a statement that e-commerce is a "clear growth driver" that typically increases basket sizes by 25%.
Instacart launched alcohol delivery in 2013 and accelerated expansion over the past few years, with household penetration more than doubling since 2018 as competitors have launched their own wine, beer and spirits delivery services.
In September, DoorDash said it added on-demand alcohol delivery and pickup to its online marketplace in 20 states and Washington, D.C. In August, 7-Eleven announced a partnership with Minibar Delivery to deliver alcoholic beverages within 30 to 60 minutes across roughly 600 of the convenience chain’s stores in Florida, Texas and Virginia, while Walmart and Target are expanding their online alcohol availability.
Like other retail partners, Meijer joined Instacart's marketplace before later teaming up on alcohol e-commerce. Instacart currently offers alcohol delivery and pickup in 26 states and Washington, D.C.
While lucrative, alcohol e-commerce is often tricky, with regulations varying across and within states. The pandemic has prompted several states, like Georgia and Oklahoma, to allow alcohol delivery to people's homes or loosen restrictions.
In recent blog posts, Instacart has explored trends within different alcohol categories. The company found wine is a trip driver during the holidays, with data from last year showing it was the first item people added to their baskets in 7% of all deliveries during the holiday season. For spirits, Instacart has seen ready-to-drink beverages grow in popularity, with purchases increasing from 11% in the fourth quarter of 2019 to 24% in the third quarter of 2021. Demand for premium drinks across alcohol categories is also growing, especially during the holidays.
