Direct-to-Consumer Sales, Marketing and Sales

Direct-to-Consumer Spirit Sales: Why so Hard?

June 29, 2020 7 Comments

Making sense out of confusion

Online purchasing of almost everything has been growing for years, including wine. But, spirits have only just begun to enter the direct shipment world with lots of obstacles and constraints. How come?

My partner Rob Warren and I have spent the past year and a half researching and learning about the emerging business of direct sales of spirits to consumers.

(We are partners in a brand building and route to market consultancy called Wisdom & Booze, LLC. He’s the wisdom, which is why I asked his help in writing this article.)

In a nutshell, we learned: 1) the need for Direct to Consumer (DtC) spirits sales is important to both makers and drinkers alike 2) online solutions for spirits will grow (we felt that way even before the coronavirus) 3) there is a patchwork quilt of players and solutions and 4) frankly, the quilt often contains confusion and, at times, land mines.

Our journey began with a quest to enter the business, to either create an enterprise or partner with someone already in it.

Then it struck us… few of the players in the business understand the spirits world, and what it takes to develop and build a brand. They understand the world of e-commerce and the digital gold mine it can provide, but know little about the world of the producer, or consumer, for that matter. With some notable exceptions, DtC providers are strictly transaction focused.

The world of direct, it occurred to us, means control of the presentation and sale of your brand; a closeness to the buyer/consumer previously obscured from view by the layers between the maker and the drinker — also known as the 3-tier system. As an example, Rob and I worked on Crown Royal back in the day, and direct marketing to consumers meant that the brand developed a relationship (some would even say a bond) with its drinkers. Using direct marketing efforts, we made the brand come alive and turned drinkers into fans and influencers.

So, we gave up chasing the players to join them and became “agnostic,” a business entity focused on the maker/producer and a guide to what we see as the important, but not always effective, quagmire known as the current state of DtC.

To sell booze online you need wisdom.

Let’s back up for a moment…

Online purchasing of almost everything has been growing rapidly for years, even prior to the coronavirus. Direct buying of alcohol, in the form of wine, has become a $3+ billion a year business. Over 40 states allow for direct interstate shipments. At the same time, direct delivery of cannabis is already happening in medical and recreational use states.

Ah, but for spirits, it’s catch as catch can — intrastate is generally okay but some in the business will tell you they ship to most places, others say a few, and even one told us: “I ship everywhere. I mark it “Olive Oil” (wink, wink).

Let’s see if we got this straight. Selling cannabis is classified by the Federal government as a Class A felony. But 11 states and DC allow for recreational use and another 31 either allow cannabis for medicinal purposes or have decriminalized its use. In addition, wine can be shipped all over the country — intra and interstate. But I can’t send a bottle of liquor made in New York to Colorado.

Didn’t we decide a long time ago that alcohol is alcohol? Check with the National Institute of Health, a drink is a drink —12 oz of beer = 9 oz of malt = 5 oz wine = 1.5 oz of spirit.

Part of the problem is the misconception that liquor is hard and other forms of alcohol are… what, not hard? Soft?

The growth of DtC for spirits

This emerging method of distribution began way before the virus reared its ugly head. The changing spirits and trade environments were at the core of the impetus. Consider this:

The wine people, particularly small wineries, led the charge with direct shipments from their wineries, sales to consumers who visited, and eventually 3^rd party wine shippers (including the NY Times and WSJ) entered the fray.
Industry consolidation and resulting financial pressures at all tiers created limitations on brand choice and selection. Examples: Which would you rather sell as a distributor sales rep, 6 bottles of a small unknown brand or 6 cases of a winner. A typical retailer question — “which leading brand should I remove from my shelf to make room for your crap?”
Even at the mainstream producer level, small, fledging brands get the hind teat, while the successful ones live high off the hog, so to speak. (Never mind that Tito’s and Bulleit were once startups).
And then there is the consumer him/herself, whereby the new drinking world of cocktails and quality over quantity, has led to a “discovery” mode of the new, unique and desirable.
The term “desirable” has many driving factors — the story behind it; the limited availability; unique and not many others are like it; shows knowledge and good taste; outstanding product; and so on.

Convenience at one end, hard to find and desirable at the other end — all add up to an important 4^th tier, the consumer.

The current DtC landscape

For the most part, there are three main segments:

1) Convenience — local purchases and local delivery.

2) Marketplace — brand aggregators selling a range of brands

3) White label — a “storefront” embedded on a brand’s website.

All of them follow the 3 tier system requirements.

The convenience segment is what is currently driving the DtC efforts. Companies like Drizly, using local retailers, are at the heart of the market. Basically, a delivery service (fast, reliable, and good at what they do), the focus is on mainstream brands that consumers know and are popular.

But, for small brands that consumers want but are hard to find — craft and top shelf alike — Drizly may not be the answer. According to Drizly:

“One of the most important things to remember is that Drizly brings retailers’ shelves online. That means it is important to have a renewed or refreshed focus on their [small brands] distributor relationships in order to work with those partners to ensure that they’re showing up on the actual shelves, and therefore on Drizly’s virtual shelves.”

A Drizly presence means the same route to market as usual but on an ecommerce platform. The key is product availability and distribution.

Fortunately, the presence of LibDib, a web-based distribution platform, can significantly help resolve the distribution problem. Their footprint is growing (currently NY, CA, CO, IL, FL, WI) and their link with Republic National Distributing Company (RNDC) means their distribution role will further be enhanced.

In effect, LibDib provides a virtual national distribution platform for all segments of the direct to consumer approaches. (See other articles I have written about them here, and here.)

The marketplace (an online store) can range from actual stores (e.g., Country Wine and Spirits, Total Wine and More, etc.) to strictly online retailers using a combination of local retailers and interstate shipping where allowed. Think of them as a liquor emporium with a large inventory of brands, both mainstream and hard to find.

Such sites as Caskers, Cask Cartel, Flaviar, and others offer a range of digital services that are comparable to in-store displays, end aisles, features, and the like. The services are not cheap but they can be effective if the producer drives consumers to the site and the site has a strong database for outreach.

The most interesting of these sites is Flaviar, which I have written about before. Here is how they describe themselves:

“Flaviar is a band of spirits enthusiasts, inspired by culture, rich history and the art of distillation. We forage the World of Spirits for the finest, rarest and most unique expressions out there and pack it all into a 21st century Members Club.”

Unlike nearly all, Flaviar develops a relationship with consumers (for a fee) and offers engagement, brand education, trial, and more, in addition to a transaction. Further, they are moving into the product development arena and bringing their own products to the market alone or in conjunction with a producer.

The most interesting segment to us, is the white label or embedded effort on a brand’s own website. Basically, a company builds a “store” on a producer’s website that seamlessly takes a consumer to a transaction site at the click of a button. Think of it as a branded storefront.

There are a number of significant players in this segment, all of whom have seen their business grow dramatically during the coronavirus. The companies we are most familiar with are Cask and Barrel Club, Passion Spirits (new website under construction), Thirstie, and Speakeasy. Each has their own strengths and weakness that producers and brands need to consider with regard to their online needs and expectations.

There are a number of significant advantages to this approach including the absence of brand clutter, and the opportunity to talk directly to a consumer and develop brand loyalty. The fulfillment aspect provides the opportunity to further engage the consumer with a range of efforts — shipping and product discounting with multiple purchases, recipe cards, swag, personalized messages, etc.

On the downside, just because you can go to a “brand owned” store at the click of a mouse doesn’t mean a wide and receptive audience. “Build it and they will come” only works in the movies. To drive traffic to an embedded store means planning, digital and social media support, a database, strong brand PR and more.

What have we learned so far

What does it take to succeed and to avoid pitfalls on the DtC journey?

Do your homework — get to understand the players in the ecommerce world and match your brand plans and consumer insights to the optimal approach and company. There are quite a few out there (with more coming) but there are wide differences among them.

Read the Terms of Service or Terms and Conditions offered to consumers. It’s a great way to understand the ecommerce player and their market and consumer focus.

Consider the economic value of any ecommerce transaction. Will the revenue generated offset the cost, particular when it comes to an embedded ecommerce site? Whether it’s marketplace or white label, there are cost considerations and return on investment decisions to be made.

But, wait a minute, maybe it’s not just about the finances. Perhaps in the world of brand discovery and/or desire, ecommerce offers sampling and trial in addition to availability.

Think about the consumer and the experience of an ecommerce spirits purchase. Are you presenting the brand in the best light? How long will it take for the consumer to receive the product? Who is the shipper?

In that regard, the delivery of the product is a pet peeve of ours. We can’t tell you how many times an anxiously awaited product has arrived wrapped in what looks like a dog’s breakfast. The shipper is trying to assure that there will not be breakage but in so doing, brands come in Styrofoam peanuts, ridiculous and hard to unpack bubble wrap, and outer wrapping more appropriate to packing fish than expensive spirits. Is that how you want to present your brand?

A critical element in the selection of an ecommerce provider is the availability of data and the extent to which that data is robust and insightful. Who is buying and how often? What else are they buying? Where have they come from (online) and where do they go? Do they provide an in-depth understanding of your consumer? Who owns the consumer database?

Lastly, and relatedly, how often do they report the transactions, in what format, and what access do you have?

The future for direct shipments of spirits

Every new enterprise requires a learning curve and even a shakeout period. It’s called evolution. The coronavirus has played a role in the acceptance and use of spirits DtC and we believe it’s here to stay beyond this horrific period. It provides the ability to receive products by delivery and to acquire desirable but hard to find brands. But that’s not all. It gives the producer a direct link to a consumer and the opportunity to develop an ongoing relationship — directly and one to one.

In particular, spirits DtC is an important element, perhaps even the life blood, of a small brand (craft or otherwise) whose route to market is difficult.

So, look for more players entering the market with different approaches, good and bad. Some will succeed and some will fail; some are right for a particular brand but many are not. Above all, look for the players that provide more than just a transaction.

The Vale Fox Distillery Story

September 27, 2019 2 Comments

The birth (pains) of a booze business

On August 26, 2019, the “birth” announcement press release appeared describing the much-awaited launch of The Vale Fox Distillery:

INTRODUCING TOD & VIXEN’S DRY GIN 1651 BY THE VALE FOX DISTILLERY

Debut Release Made in New York by British Master Distiller and Trio of World’s Top Bartenders

It went on to say:

… With three of the world’s top bartenders, gaz regan, Leo Robitschek, and Jeffrey Morgenthaler, involved from day one, Tod & Vixen’s Dry Gin 1651 is specifically designed to enhance flavors in cocktails. Add the expertise of our British Master Distiller and you have one lively mix of British sophistication and American mischief. Tod & Vixen’s Dry Gin 1651 is made from the cocktail backwards…all the way back to the year 1651, in fact.

And therein lies my tale…

The back story

The email was similar to the many I receive about starting a distillery and looking for advice and assistance. Most are from well-intentioned dreamers who think the path to success and fortune can come out of a bottle. Like this one, “my grandmother passed away and left me $100,000… I’ve always wanted go into the liquor business… can you help me launch the business.” My advice: “Perhaps you should invest the money.”

But, this particular email caught my eye and felt like it might be worth pursuing further. It was from a gentleman named, Eral Gogol-Kline.

“I have been reading booze business for a few months now and have really enjoyed your insights into the spirits and wine industry. After spending the last 13 years in investing and finance, I switched gears and am currently starting a whisky distillery in the Hudson Valley. I would love to talk to you about the services you offer.” (That was in July, 2015.)

So, we arranged a call and I had two questions, the answers to which would determine if I could really be of help. “Do you plan to make vodka while your whisky matures.” The answer was no, he wanted to make a world class gin. Okay, that was intriguing and welcome news. The next was “Do you have an exit strategy?” His reply surprised me: “No, I don’t; I suppose down the road that could conceivably happen but my plan is to build a business for myself, my family, and the future.” I couldn’t wait to get started.

My journey with Eral Gokgol-Kline began later that year.

About Eral

What impressed me most about Eral were a number of things. Here is a person who is willing to give up a successful global investment practice to pursue his dream of starting a distillery. Born abroad to parents involved in international non-profit organizations, he spent his childhood in Turkey, traveled the world, and ultimately moved to the US, where he went to school. Then spent eight years living in London working in investment funds.

Above all, it was (and still is) clear to me that distillation is a central part of his nature. His love of craftmanship and quality together with studying about and loving single malt scotch (which he learned to appreciate from his mother), is palpable and very impressive. I’ve met many distillers (talented newbies and seasoned pros) and Eral can hold his own with the best of them.

I later found out that distilling is a part of his DNA. He did some genealogy research and learned that his great, great, great, etc., Dutch grandfather founded a New York distillery in 1651, about an hour away from The Vale Fox Distillery. (By the way, vale is an old English term for valley.)

The Team

A significant flaw of many startup distillers is their belief that their efforts are bound for success, no matter what. “Build it and they will come,” works only in the movies. A distributor friend puts it this way: “I have a warehouse full of other people’s dreams.”

Not Eral. His passion was not equipped with blinders. As he set out on this journey, he did two things — studied and learned about all aspects of the business and surrounded himself with some extraordinary advisors. So, by the time I got involved he was well on his way with the overall plan for the Vale Fox Distillery. Ultimately, his goal was to produce world class American Single Malt Whisky. The ability to replicate, and arguably surpass the malts from Scotland, was demonstrated by such award-winning malts as Kavalan from Taiwan, and a host of Japanese products. Eral reasoned that American ingenuity, history and whiskey making skills would be a perfect match with the traditional approaches used in Scotland.

His advisors included, the late Dr. Jim Swan, a chemist formerly affiliated with the Scotch Whisky Research Institute and inventor of the unique aging casks now used by The Vale Fox Distillery. And, Harry Cockburn, with over 45 years of distillation experience and former affiliations including the Bowmore Distillery. Douglas Cruickshank, former Production Director at Chivas Brothers, joined later.

With his advisors’ guidance, he designed the distillery and purchased the equipment —pot stills made from the highest purity copper by Forsyths, a Scottish coppersmith with over 200 years of experience.

Most importantly, he purchased a small batch estate located on a 120-acre plot in the Hudson Valley region of NY state. But, to produce a world class single malt takes time and Eral planned to exceed the minimum aging requirement. In the interim, he decided to produce an exceptional world class gin. Again, by the time I had come along he had created the brand — Tod & Vixen Dry Gin 1651 — including concept, branding, and packaging. (More about the gin in a moment.)

To produce the gin, and ultimately the single malt whisky, Eral hired Roselyn Thomson as the master distiller. Her career in the whisky industry began in 2002 and worked in the UK for such notable companies and brands as Macallan (the first female distillery operator), Aultmore, Dewar’s, and others. In short, the perfect candidate to blend the two whisky cultures.

The most recent addition to the team is Cliff Oldfield, who worked with me during my Mongolian Vodka journey and more recently with Dad’s Hat Rye. Cliff manages sales. Two other important players have rounded out the team — Kate Laufer Gorenstein PR, and Mindflint, a digital and social media agency.

And so, the group in place, the distillery up and running, the launch of the gin took place at the end of August this year. But not without birth pains.

Tod & Vixen Dry Gin 1651

Let’s start with the name. Tod is the name for a male fox and Vixen the name for a female fox. When I first saw the branding and packaging, I fell in love with it. It is playful and the two characters reflect the positioning of the brand. But more than that, they represent an interesting point of departure for a gin brand that set the stage for the overall strategy and reason for being — to succeed a brand must cut through the clutter of new gin brands by being unique and relevant.

From 2015 to 2018, nearly 600 non-whiskey brands were introduced in the US and over 20% of those products were gin. That said to Eral and me, that the single most important question we would be asked by both the trade and consumers would be — why this gin? What makes it different and something I should buy?

In short, we needed to cut through the clutter and distinguish the brand in the market. A number of ideas emerged mainly centered on the product itself. Here’s how Eral and his team describe it on their website:

“How our products are consumed is as important to us as how they are made. So, we recruited a team of revered cocktail professionals led by Gary (gaz) Regan, including Leo Robitschek and Jeffery Morganthaler, early on and paired them with our British Master Distiller to help us develop our gin. The result is one lively mix of British Sensibility and American Mischief©.”

Part of the answer was to develop a product with the guidance of a team of cocktail experts and “make it from the cocktail backwards.” After all, gin is almost always consumed in a mixed drink, most notably the Negroni.

A series of back and forth blind tastings among these three gentlemen ultimately produced a product that gaz regan (Mr. Negroni) described as “this gin rocks.” More specifically:

“… designed to enhance the flavors of gin cocktails, our inaugural Tod & Vixen’s Dry Gin 1651 is made by macerating botanicals — including juniper, angelica root and rooibos tea — to extract their flavors, then non-chill filtering to retain the unearthed profile. The resulting sip is bold on the entry, giving way to a well-balanced, vibrant gin with a weighty mouthfeel.”

Tod & Vixen graphic novel — Tod & Vixen Graphic Novel

To enhance the playful aspects of the gin, I was charged with the fun mission of writing and producing The Vale Fox Distillery’s one-of-a-kind graphic novel for Tod & Vixen’s Dry Gin 1651. It tells the tongue-in-cheek tale of two eponymous grey foxes with a penchant for imbibing who embark on a quest to save their homeland from imminent environmental destruction. (If you would like a copy, you can get it on the website here.)

Along the way…

As a craft distiller in New York State, The Vale Fox Distillery is entitled to a number of benefits. So long as 75% of ingredients are sourced from the state, a distiller can self-distribute, conduct tastings, sell product at their location, and a number of other important benefits.

But producing a world class gin is far from a “slam dunk” undertaking. “Daunting” is a better description. Despite the planning, the ideas, and the team, a parade of issues and delaying factors entered the picture, in addition to the usual back and forth with the TTB (Tax and trade Bureau) and NYSLA (NY State Liquor Authority) approval process.

The township of La Grange, NY, where the distillery is located, needed to grant approvals and assure compliance with zoning issues. Meetings with township officials, individually and at town meetings, were met with minor concerns but took some time and resulted in delays.

The biggest problem was getting Roz Thompson a visa to work as distillery manager. This occurred at the height of the current Washington administration’s concern about immigration and entry into the US. Never mind that she is a top-notch distiller with incredible and arguably unique skills — it took a battery of lawyers, a ton of paperwork, and many months.

Most ironic of all was the fact that Eral is a committed environmentalist who went out of his way to steward the protection of the land and its inhabitants. The property is home to a herd of deer, turkeys, a bobcat, tons of birds of prey and even a “shy little fox that runs around in the mornings.” The operation runs on geothermal energy, and he’s gone out of his way to protect two endangered species, the Indiana bat and the Blanding’s turtle. The irony was the nonsensical demands (in my view) of the state authorities with peculiar guidelines for protecting the turtles. More delays.

Oh, and let’s not forget the interruption in shipping the labels from Europe because of the summer.

At the end of the day

The standard definition of an entrepreneur is someone who organizes, manages, and assumes the risks of a business or enterprise. To me there’s more, including tenacity and constant risk taking.

Sure, all startup entrepreneurs have these traits to a more of lesser degree. But I have never encountered one who said this in a Daily Beast interview:

“You know, we did a lot of stuff—we failed a lot,” he says. “We learned from our failures. And to me, failing is very important because if we’re not failing, we’re really not trying.”

Despite the challenges and hurdles, Eral has begun to see his dream come to fruition. And, I must tell you that Tod & Vixen’s Dry Gin 1651 is an outstanding product, not only in a Negroni but in any gin cocktail. In addition, Eral is working on a number of gin variations, each more exciting than the other.

But, I can’t wait to try the (American) Single Malt Whisky.

Amazon, Malfy Gin, and Building a Brand

June 21, 2018 2 Comments

First, an Update:

Last Friday, Wine and Spirits Daily reported that Mark Teasdale, CEO of Proximo Spirits is leaving to join Biggar & Leith, the company Founded by Elwyn Gladstone that markets Malfy Gin and Spytail Rum. Mark and Elwyn have previously worked together at Proximo and William Grant and collaborated on such new brands as Kraken Rum and Hendrick’s Gin, among many others.

I learned of this development after I wrote this article and it adds immensely to the story. Both these folks are top of the game spirits industry players. And, as you will see, Elwyn has already been doing amazing things with Malfy. So, this change builds on success and gives the company an even more important presence in the industry.

Leveraging the Power of Amazon and Direct-to-Consumer Sales

Malfy Con Limone Gin (the original product) is made in Italy from the luscious lemons of the Amalfi coast under the marketing and sales guidance of Elwyn, whose background includes senior positions at large spirits companies. (The original story on Elwyn and Malfy can be found here.)

I was wondering how Elwyn, with his large company experience, was making out with his fledging startup brand. So, last month, I checked in with him. He is, after all, one of the most creative and smart marketers I know. Could he transfer his skills honed at large spirits companies to a startup? In particular, I wanted to know how the brand was received by distributors. Would he get the same attention with Malfy as he got with Hendrick’s?

Little did I know when I reached out to Elwyn, that this journey is most unusual and a case study on how to beat the system and build a brand despite obstacles.

How is Malfy Doing?

After only just a few years in the market, the brand is on track to do over 185,000 6-pack cases in the US and around the world — the UK, other European markets, South and Central America, South Africa and elsewhere. He has lots of room to grow geographically and his re-order rates are impressive.

In the US, the brand is among the top 10 Super-Premium Gin in Nielsen (brands that cost more than $25 per bottle) growing at over 300% and on track to hit a top 5 position. The brand is distributed by Infinium Spirits in the US, and based on the aforementioned, I’d say they are paying attention to the brand.

He has also introduced a range of gin products. The US has the first launched Con Limone, and recently introduced Originale, a traditional gin. Outside the US, the Malfy Gin line also includes Gin Rosa, a Sicilian pink grapefruit gin, and Con Arancia, gin made with Sicilian blood oranges. He and Infinium Spirits will introduce these other gin line extensions in July.

That’s only part of the story—enter Amazon

It is fairly common for a new brand to look to the rest of the world (especially Europe) as a way to build a brand and generate sales, while waiting for the US market to wake up. What happens is that an importer is contacted, who probably has a stable of brands, and the wait for growth traction overseas becomes another frustration.

But not for Elwyn and Malfy Gin. I asked him, “How come you’re doing so well in the UK?”

The answer? Amazon and direct-to-consumer sales.

According to Elwyn, “The absence of a mandatory 3-tier system coupled with a robust purchase and delivery system creates a strong platform for direct to drinker sales. But, more important, Amazon provides the opportunity for the brand owner to use all sorts of marketing efforts and truly remain the guardian of their brand.”

In the UK and Germany, he is selling over 1,000 bottles per month and growing.

Let’s take a closer look at Amazon and liquor sales.

But, first, let’s cover a few noteworthy things about Amazon and spirits:

As I’m sure you known (but for those who don’t) Amazon does not sell direct to consumers in the US. They tried to with wine but that ended when they acquired Whole Foods.
Outside the US, it is the importer who sells to Amazon, but in Elwyn’s case, he has been the driving force influencing importers to use Amazon.
The markets where Amazon is currently selling booze are limited to the UK, Germany, Spain and Italy. But they are rapidly opening other markets.

Amazon — distributor and retailer

If you talk to US distributors about Amazon, you’ll hear two views, a public and private one.

The expected and public view is, “Nobody ever built a brand on Amazon.” That’s currently true but, certainly, brand building overall in the US has changed and, for fledgling brands, the growth comes from the consumer themselves, more than the trade. That’s why privately, many distributors express concern about direct sales in general and Amazon in particular.

Recommendations from bartenders and store people are important but so is word-of-mouth among drinkers themselves. As to Amazon’s role here, Elwyn suggests,

“Think of Amazon’s product page as the world’s most efficient shelf-talker and neck-tag information booklet… including reviews from hundreds of consumers, press and PR, recipes, photos, and more. And, let’s not forget the simple star ratings based on thousands of people.”

Clearly, Elwyn has spent quite a bit of time trying to understand Amazon and its power to build and sell spirits brands so I asked him to further share his marketing and sales thoughts. After all, Malfy has become a top 10 best-selling gin, surpassing many household name brands including Hendrick’s.

Here is what he has learned about the power of Amazon and the role of the internet in general:

The brand owner is in control. Once establishing your ownership with Amazon, you can appoint people who can manage the site/sales, but the brand is firmly in your hands.
Brand sales drivers. Of course, product credentials (brand name, packaging, etc.) are important but Amazon also allows an owner to:

Put up consumer reviews, so that the more frequent and better the review, the higher the brand appears in searches.
Use key words, that also drive how well a brand does in searches on Amazon.
Advertise via sponsored ads.
The use of brand photos, which is a huge driver and there are ways to test which photographs work best.

Sales data. Amazon in the UK provides easily accessible data on brand sales ranking for all brands within a given category.
A level playing field. This is ideal for smaller brands inasmuch as the big boys cannot muscle them out as they can in stores with multiple facings, optimum shelf space and, well, plain old clout.
More effective promotions. Amazon provides quicker and easier ways to manage and measure the impact of promotional activities.
Tastings are more cost effective. The current approach at retail can easily cost $200 per session and the reach is limited. Amazon offers the opportunity to purchase sample boxes so consumers can buy a bunch of miniatures. It’s also a better use of the brand owner’s time than standing around a retail store doing tastings.
Enhanced recommendations and word of mouth. According to Elwyn, the Amazon approach may just surpass a recommendation from a bartender or store-keeper. (See the earlier comment about the Amazon page strengths.)
Making it easier to reach the on-premise trade. Those of you involved in the bar trade can relate what a nuisance it is to order a new brand from a startup. Amazon provides the ability to order any brand listed, including a single bottle

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In sum, the Amazon — non-USA — platform is a powerful brand building and sales device. The brand owner stays in complete control, the tools available can provide an effective means for reaching a very wide audience, all efforts and expenditures are easily tracked and effectiveness measured, and, it is amazingly cost effective.

It is, of course, interesting to speculate whether the US will eventually go this way and create the same opportunities for the small producer as in Europe. My answer is NO, we have a 3-tier system, which is unlikely to go away, and direct-to-consumer transactions remain difficult if not impossible.

Elwyn Gladstone’s approach to building his overall and global brand business is incredibly sound both strategically and tactically. While he overcomes obstacles and patiently waits for the US business to take hold, he is leveraging the available resources outside the US to provide the wherewithal to help and to build his brand in the rest of the world.

I told you he was smart.

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