Innovation

Beverage alcohol retail technology remains ever-changing and constantly evolving . Especially with the plethora of opportunities that AI brings to the table , it ’ s crucial for independent liquor stores to keep up with the market .

“ Because of all of these technologies that have changed the market , customer expectations are higher than what they used to be ,” mentions Kristine Joji , EVP of strategy consulting for Insight AI . “ As technology solutions such as pricing , visibility , delivery and data are becoming more available , it ’ s going to lead to a potential decline in business in liquor stores if they don ’ t aggressively manage it .”

Artificial Intelligence is taking the digital transformation industry by storm . Whether it ’ s by streamlining employee processes , improving quality control , predicting demand and optimizing the supply chain , every aspect of a business has become easier with the help from AI .

MEETING CUSTOMERS WHERE THEY WANT TO SHOP

Since Covid , more consumers are getting used to purchasing alcohol online . While there are a variety of delivery services out there to help liquor stores ship to customers , many retailers still don ’ t offer this option .

The SmartCommerce Omnichannel Report , issued in June 2024 , highlights dynamic shifts in purchasing behaviors for alcohol beverages . The majority of shoppers ( 64 %) still prefer to purchase alcohol beverages entirely in-store , with 16 % using a combination of online and in-store , 11 % opting for online with in-store / curbside pickup and 9 % choosing online with delivery . Despite the slower shift in this category , the trendlines towards online purchasing is undeniable and likely to follow the trajectory of other CPG goods .

Even though most consumers are purchasing their alcohol in stores , there ’ s no denying the growth of e-commerce . And liquor stores need to catch on before they get left behind .

“ Given these evolving consumer preferences ( and expectations ), it ' s critical for liquor store retailers to embrace e-commerce technology and establish a more robust online presence , beyond just having a website ,” advises EVP of partnerships at SmartCommerce Don Knapp . “ It ' s true that online shopping for beverage alcohol products is more challenging because of all the legalities and restrictions , but the days where loyal shoppers will swing by the same liquor retailer and chat up the clerk are numbered . Shoppers want their beverage of choice , their brand of choice , as fast and affordably as possible .”

DETERMINING CUSTOMER DEMAND

Aside from meeting consumers wherever they want to shop , you also need the right products on hand . Generative AI can help liquor stores determine demand and plan their inventory accordingly .

“ Retailers , distributors and manufacturers can all leverage gen AI for a supply chain health check ,” says Lisa Henriott , SVP Product Marketing , Logility . “ Anyone can ask questions like ‘ Show me the 3 top selling products this week ,’ or ‘ Show me the products with the lowest safety stock ’ or even ‘ Who your best or worst customers or categories are .’ AI helps retailers transform their inventory from a source of excess cost to a competitive advantage by creating an optimized plan that minimizes carrying costs while avoiding stockouts . Gen AI is great for spotting imbalances between demand , supply and inventory , improving overall performance .”

Aside from the beverage alcohol industry , even sectors less typically

Kristine Joji , EVP of strategy consulting for Insight AI .

David Vander Bussen , product manager , Epson America .

thought of as “ early adopters ” of new technology are actively exploring and experimenting with gen AI . Marc Kermisch , chief digital and information officer at CNH Industrial NV , a global manufacturer of agricultural and construction machinery headquartered in London , United Kingdom , told the Harvard Business Review in a white paper that he believes it is “ an imperative and an obligation ” to actively explore its potential in his business .

Kermisch explained that CNH Industrial is categorizing generative AI use cases into three core areas , one of them being customer impact . Using gen AI to provide access to knowledge and tools that make it easier for customers to use their products and interact with the company is imperative , as stated in the white paper .

OPTIMIZING EMPLOYEE TASKS

AI can also help beverage alcohol brands address a variety of different administrative tasks that are time consuming for employees . Repetitive functions such as order processing , checking compliance , checking stock , reporting the fi- nancials and other mundane duties can easily be taken over by AI .

6 Tech Guide 2024