"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."
"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 It's an outdated, high-effort process that has also become increasingly irrelevant to younger consumers."
Alcohol sales in U.S. retail fell nearly 3% in 2024, creating one of the sharpest year-over-year declines in recent memory. Tariffs on imports, rising popularity of non-alcohol alternatives and CBD products, and delivery platforms pulling shoppers and purchase data out of stores are reducing trips and diverting in-store purchases. Mail-in rebates remain common in alcohol promotions but impose high friction through saved receipts, forms, and 4–6 week waits for small rewards, producing redemption rates below one percent. Younger shoppers often lack familiarity with mail-in rebate processes. Mobile-first, value-driven digital solutions such as alcohol cashback can capture loyalty, unlock supplier dollars, and revive category growth.
Read at Grocery Dive
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