ecommerce uk

UK, Covid-19 spurs online channel development

David BECK Academic - Economics, Society and Political science - Environment and Technologies (AI, blockchain)

In many markets around the world, e-commerce is universally seen as a key tool to counteract the demise of on-premise sales and in some cases, severe restrictions to brick-and-mortar locations.

While markets with an established e-commerce structure are meeting increased demand, such as in the UK and Spain, there are growth constraints due to capacity issues.The pandemic has also highlighted the plight of countries lacking a viable e-commerce structure, such as in Italy.

Whilst Italy has doubled its e-commerce sales, this is negated by its low starting point and restricted sales due to limited capacity. Meanwhile, consumers in Germany have proven reluctant to embrace online alcohol sales. Alcohol e-commerce has grown but not to the same extent as other developed European markets.

We analyzed wines listed in the top e-commerce stores by traffic of the UK – the leading white wine players

1. Cloudy Bay
2. Bodega Hidalgo
3. Gonzalez Byass
4. Louis Latour
5. Dog Point Vineyard

6. Domaine Zind-Humbrecht
7. Dr. Loosen
8. Louis Jadot
9. Penfolds
10. Pieropan

11. Royal Tokaji
12. Rustenberg
13. Villa Maria
14. Alain Chavy
15. Au Bon Climat

Off-trade and e-commerce drive growth in the UK.

By comparison in the UK, off-trade is up by 20% and e-commerce is up by 50%. The growth potential of e-commerce in the UK, however, is constrained by capacity issues and catering to the surge in demand, especially within general grocery e-commerce which leads in the UK. The closure of the on-trade in the UK has meant 40% of UK trade has been removed from the market.

1. Marlborough
2. Sancerre
3. Chablis
4. Western Cape
5. Pouilly-Fume

6. Rias Baixas
7. Mosel
8. Rioja
9. Sauternes
10. Sherry

11. Stellenbosch
12. Veneto
13. Adelaide Hills
14. Central Valley
15. Gavi

As governments begin to ease movement restrictions, consumers may start to gradually leverage additional channels for their alcohol purchases. For example, e-commerce greatly benefited from strict movement restrictions in China. However, as restrictions started to ease, there has been some return to brick-and-mortar retailing at the expense of e-commerce. The gradual reopening of restaurants is providing consumers with additional alternatives as well.*


Academic - Economics, Society and Political science - Environment and Technologies (AI, blockchain)