Retailers turn to digital rebates as alcohol sales slump

"Within roughly the past six months alone, Swiftly expanded its alcohol rebate programs from about 11,000 stores to more than 33,000 stores in 44 states. Swiftly had built an alcohol cashback product in 2023 but scaled it through the acquisition of alcohol promotions platform BYBE in 2024."

"Spending at liquor, wine and beer stores fell 5% year over year in January, according to Bank of America transaction data. Fewer 21- to 34-year-olds are binge drinking compared to a decade ago, according to a Bank of America Institute analysis of research from the U.S. Substance Abuse and Mental Health Services Administration."

"In fact, Swiftly and its retailer partners have tailored the marketing of the rebate programs specifically toward younger customers. They won't call them "rebates," because Gen-Z consumers may not be familiar with that term; instead, they call them "alcohol cashback.""

Retailers including Circle K, 7-Eleven, Speedway, and Giant Eagle are launching digital alcohol rebate programs through partnerships with technology company Swiftly. Swiftly expanded its alcohol rebate offerings from 11,000 to over 33,000 stores across 44 states within six months, following its 2024 acquisition of alcohol promotions platform BYBE. These initiatives address declining alcohol sales, with spending at liquor stores falling 5% year-over-year in January. Fewer young adults are consuming alcohol compared to a decade ago. Retailers market these programs as "alcohol cashback" rather than "rebates" to appeal to Gen-Z consumers unfamiliar with traditional mail-in rebate processes. The programs aim to increase mobile app usage and e-commerce engagement while helping alcohol suppliers reach younger demographics.

Read at Digiday