business news in context, analysis with attitude

CNBC has a story suggesting that one of the benefits of Amazon’s acquisition of Whole Foods may be an improved ability to sell alcohol.

The story notes that “alcohol has been mostly out of grasp for Amazon - until recently. Even with a network as vast and complex as Amazon, the logistics of shipping booze is somewhat nightmarish. Intoxicating liquor can't be mailed in the U.S., and services like FedEx have strict requirements for delivery. Then there are individual state mandates on both shipping and retailing, not to mention the need to check the ID of every purchaser.”

The ability to use Whole Foods as mini-warehouses in a number of local markets, CNBC suggests, could allow Amazon to both deliver alcohol and offer click-and-collect services to consumers, without having to deal with complicated shipping logistics.

At the same time, Amazon has “quietly expanded the cities included in the alcohol delivery service through Prime Now, one of its subscriber services that mainly delivers groceries.” It also is enabling its Alexa-powered smart speaker system to take beer orders in some markets, and MillerCoors recently launched a a Dash button to simplify reorders.
KC's View: