For decades, the alcohol category has been a reliable driver of trips and revenue for grocery retailers. But today, that consistency can no longer be taken for granted. According to NielsenIQ, alcohol sales in U.S. retail fell by nearly 3% in 2024 — one of the sharpest year-over-year declines in recent memory. Tariffs on imports and the popularity of non-alcohol alternatives and CBD products are creating headwinds. At the same time, delivery platforms are intensifying competition by pulling shoppers — and their data — out of stores, reducing trips and diverting purchases that would otherwise happen in-store. As a result, retailers need to find new strategies to protect their profit margins, re-engage shoppers, and boost category growth.

The path forward lies in digital innovation. Shoppers are demanding more mobile-first, value-driven experiences, and outdated promotional models, such as paper rebates, can’t keep pace. For retailers, embracing digital solutions such as alcohol cashback is no longer optional — it’s the key to capturing loyalty, unlocking supplier dollars, and ensuring alcohol remains a growth engine in a rapidly shifting market.

Why Traditional Rebates No Longer Work

Historically, the alcohol category has leaned on mail-in rebates to incentivize trial and repeat purchase. While common, this model is fraught with friction. Shoppers must save physical receipts, fill out forms, and wait 4–6 weeks for a check in the mail — all for a $5–$10 reward. It’s an outdated, high-effort process that has also become increasingly irrelevant to younger consumers. According to Swiftly studies, many Gen Z shoppers don’t even know what the word “rebate” means — and most have never mailed a letter or owned stamps.

Not surprisingly, redemption rates are low. In fact, the average redemption rate for paper coupons is below one percent¹, limiting the impact of supplier promotions and making it harder for retailers to realize incremental gains.

The Digital Shift in Shopper Behavior

Modern consumers expect mobile-first, value-driven shopping experiences — and the alcohol category is no exception. Shoppers want offers that are easy to find, activate, and redeem within the digital channels they already use daily. Retailers that meet these expectations benefit from increased trips, higher engagement, and stronger loyalty.

Recent Swiftly data underscores this trend. Alcohol buyers who engage with digital cashback programs generate 40% higher basket values, and 44% of consumers already use alcohol cashback offers. Even more compelling, over 70% of consumers say they would be more inclined to shop with a retailer or purchase from a brand that provides alcohol rebates. These numbers highlight the value of digital incentives as both a growth driver and a competitive differentiator.

Gen Z offers a window into how this shift is playing out. Once aligned with the sober-curious movement, Gen Z is now reengaging with alcohol — 73% reported having an alcoholic beverage in the past six months, up from 66% in 2023.² But they are doing so differently than older demographics. This generation is highly price-conscious, digitally influenced, and expects premium, personalized experiences when they do choose to purchase. For retailers, that means solutions like digital alcohol cashback are not just nice-to-have, but essential to capturing growth in this increasingly digital, experience-driven segment.

How Digital Cashback Rewrites the Playbook

Digital alcohol cashback programs are bridging the gap between shopper expectations, retailer needs, and supplier goals. Unlike mail-in rebates, digital cashback integrates directly into a retailer’s loyalty app or website. Shoppers activate offers, make a purchase, and receive near-instant payout options (PayPal, Venmo) — no receipts, no waiting.

The benefits extend across the ecosystem:

• For retailers: Cashback is supplier-funded, so there’s no margin impact. Swiftly’s platform ensures full compliance with state-level alcohol regulations, giving retailers peace of mind while unlocking new promotional revenue. These offers also require loyalty enrollment — a major driver of digital adoption. With many alcohol discounts in the $3–$10 range, the incentive is simply too good to pass up. When shoppers see in-store tags prompting them to “clip this rebate in the app,” most will download the app and join the loyalty program on the spot, fueling first-party data growth and long-term engagement.
• For suppliers: Cashback offers a frictionless way to drive trial and repeat purchases. By connecting digital offers to in-store activations, suppliers can create cohesive, data-driven campaigns that enhance visibility and influence purchase decisions at the point of sale.
• For shoppers: The experience is fast, seamless, and rewarding. Offers are easy to find, activate, and redeem within the retailer’s app, giving shoppers a more transparent and convenient experience.

Turning Decline into Opportunity

For retailers, the urgency to act is real. As alcohol sales face pressure, those who digitize their promotional strategies will be best positioned to capture supplier funding, attract shoppers, and offset category headwinds. Importantly, the benefits extend well beyond alcohol: cashback programs accelerate app adoption, boost loyalty enrollment, and strengthen relationships with shoppers who see tangible value in their engagement.

This is where Swiftly is setting the standard. Swiftly’s Alcohol Cashback program isn’t just another tool — it is defining the category for digital alcohol promotions. By combining state-level compliance expertise with a seamless shopper experience, Swiftly has become the trusted partner for retailers and brands navigating this highly regulated, high-value space., Alcohol Cashback delivers the full package: supplier-funded offers, shopper engagement, and measurable ROI (Return on Investment) — all integrated into a retailer’s digital ecosystem.

Leading retailers such as Circle K, Target, and Speedway are already partnering with Swiftly to transform their alcohol promotions. These partnerships demonstrate that cashback is more than a promotional tactic — it is a market-leading strategy that reinvigorates category sales, grows loyalty, and strengthens competitive edge. By choosing Swiftly, retailers aren’t just adopting a solution; they are joining a movement that is reshaping how alcohol is marketed, sold, and experienced in the digital age.

The Bottom Line

The alcohol category is too valuable to leave stagnant. Outdated print rebate models are holding the category back at a time when mobile-first, value-driven experiences are what shoppers expect. Digital cashback provides the path forward — helping retailers protect margins, unlock supplier funding, and re-engage shoppers with seamless digital rewards.

And the opportunity is growing. With states like Pennsylvania and Missouri recently updating regulations to allow more rebate and cashback content, new markets are opening for retailers and brands that may have previously viewed digital alcohol promotions as off-limits.

As restrictions ease and adoption accelerates, digital cashback is quickly becoming the new standard. Retailers that move quickly will not only offset category declines but set a new standard for how alcohol is marketed and sold in a digital world.

Your shoppers are already looking for digital value. The only question is — will they find it with you? Contact Swiftly to learn how Alcohol Cashback can help you grow loyalty, capture supplier funding, and win in today’s competitive market.