Direct to Consumer Consulting Services

Posted on: June 12th, 2023 by aliciavargo

Direct to Consumer Consulting Services

Navigating the Direct to Consumer Market

Questions and Answers to Optimize Direct to Consumer Wine, Liquor and Beer Sales

As an owner of a craft spirits brand, why do I need an online (DTC) direct to consumer store?

Answer: The landscape has changed in the beverage industry, and it continues to change expeditiously. The onset of COVID in 2022, was a driving force with opportunities for consumers to purchase online. Restaurants and retailers were forced to digitally pivot to survive. Brick and mortar stores were faced with delivery, carry out or additional direct-to-consumer options. The DTC arena has continued to flourish post COVID, and has been an anchor for off premise sales growth. Though alcohol delivery is not the main driver of retail liquor sales, it is an area of the industry that cannot be ignored. According to Rabobank: “Online sales now represent about 4% of all off-premise alcohol sales in the U.S., increasing from nearly 1.9% in 2019” https://www.rabobankwholesalebankingna.com/alcohol-e-commerce-sales-surpass-6-billion-in-2021/  In the last 3 years, there are still many consumers that will pay the premium for convenience of delivery to their homes.

How can I promote my brand and increase exposure to drive consumers to our website online?

Answer: Embracing social media is vital to growing a brand. Facebook, Instagram, Google Shop, or other social or purchasing platform can drive traffic to your “buy now” button on your website. It is important to be found on Google even if for example, you are not one of the top ranking Vodkas on the market. There are creative ways to optimize your brand, so Google acknowledges your on line presence. Social Media campaigns, awards, competitions and blog mentions also assist with finding your given category on Google. Webolutions, an online marketing firm states, “The purpose of SEO is to increase a website’s online visibility to achieve various goals such as greater brand recognition, increased website traffic and more sales. https://webolutions.com/what-is-seo-questions/

Finding the right liquor store partners:

How do brands partner with brick-and-mortar retail stores to be successful?

Answer: Smaller chains and independent stores are focusing on craft spirits that aren’t in grocery or major chain retailers. Grocery or larger venues that sell liquor, beer and wine have a set amount of the most popular category SKU’s. Many consumers love to explore new brands that aren’t necessarily mainstream names on the shelves.  If you own or represent a small-midsize distinctive craft spirit(s), get to know the stores prior to pitching them on your brands. If you own your own Distillery, this is a fabulous article on tips of how to be effective: https://resources.boelter.com/craft-distilleries-tips-for-staying-competitive

Old-fashioned surveys of retail stores are still and always will be extremely important. “Gallo style” tactics are what the beverage industry calls a physical survey of store shelves. This includes counters, type of products a retailer is floor stacking, and what is in the cold box.

Starting with an online survey is of the utmost importance to determine what the store’s culture is. Scrutinizing pricing, categories, shelf facings are part of the second phase of the survey, but first things first:

Start online-proceed to the stores website. Do a deep dive into the prospective off premise site, develop a strategy, and create a need for your brand.

• Does the online store have banner ads or features on any of their online pages?
• View your category and look at the online pricing. Are they higher or lower than well-known stores in their own market or surrounding markets? What type of selections do they offer by category?
• View your competition pages and become familiar with your competitors. Are there awards, and descriptions posted?
• Do the website have typos, is it a sloppy site, and are the categories well thought out?
• Does the retailer deliver and/or ship in state lines or over state lines? Each state has different legalities.
• Is Drizly, Reserve Bar on their site? Go to the “buy now” button, click and add an item in your cart. View their platform, what company is the store using for their “buy now” button. A fabulous read for the top 10 software platforms: https://www.top10.com/ecommerce/comparison
• Are there delivery shipping costs to the end consumer? Place an item in the cart and view shipping methods and costs involved.  Any incentive to buy more than 1 bottle?
• About Us: Meet the team, are there team member bios on the site? You can get a feel for the culture, personalities and talent they have working for them with this information.
• Go to the store social media site(s) to gain perspective with how they promote brands.
• Note any featured Clubs, such as a Whiskey Club, Tequila or Wine Club. Will your brand fit in a “featured” opportunity with price points for their consumer clubs? A best kept secret way to increase your sales while supporting the retailer.