Alcohol eCommerce artificial intelligence (AI) powered platform DRINKS has revealed that nearly half of younger consumers are ready to abandon traditional alcohol retailers.

Conducted by Dynata, DRINKS’ recently commissioned survey of 1,000 consumers in the United States found that 49% of those between the ages of 21 and 34 would likely purchase alcohol from their favorite online retailers if they started offering it versus their traditional alcohol retailers. Forty-five percent of 35-54 year olds answered the same way, which demonstrates this preference spans multiple generations, DRINKS notes.

The desire for digital purchasing “sharply contrasts” with current shopping patterns, with 64% of people over 45 always purchasing alcohol in stores, compared to just 36% of younger buyers. The survey found that convenience drives 32% of millennial purchasing decisions, but alcohol sales remain “rigidly locked in physical stores,” according to DRINKS.

This disconnect extends to how consumers discover new products, the company says. For younger drinkers, social media has become a primary influence. Instagram guides 22% of millennial purchasing decisions, it notes. Overall, younger consumers are three times more likely than older generations to try new alcohol brands based on online recommendations and digital ads, the company shares.

“The alcohol industry is leaving billions on the table by operating with a distribution system designed in 1933,” said Zac Brandenberg, CEO and co-founder of DRINKS, in a statement. “Today’s consumers discover brands on Instagram and expect to buy with a click. Brands and retailers that modernize and adapt to these digital preferences will capture an entire generation of consumers.”

The traditional three-tier alcohol distribution system established after Prohibition has been foundational to the industry for nearly a century, but needs enhancement to meet today’s digital commerce landscape, DRINKS notes. The company’s DaaS system (Drinks as a Service) platform enhances the existing three-tier system by connecting licensed producers and retailers with modern eCommerce platforms and retailers, which enables brands to reach previously inaccessible digital markets while maintaining compliance, it says.

The future of alcohol retail doesn’t require disrupting established regulatory safeguards, but rather augmenting them for the digital age, the company says. By working within existing frameworks while enabling modern shopping experiences, DRINKS helps the entire industry evolve to meet changing consumer demands, it adds.