Bloomberg Businessweek - USA (2020-08-10)

The rapid growth of online shopping may be the dominant

retail storyline of the past decade, but e-commerce in the

liquor industry remains something of an exotic curiosity.

Don’t blame the alcohol. After Prohibition, regulation

in the U.S. was left to individual states, which means that,

including the territories and commonwealths, there are

54 separate sets of logistics for a potential purveyor to nav-

igate. The byzantine landscape is confounded further by a

three-tiered system in which suppliers and retailers can con-

nect only through distributors.

Charting a surprisingly seamless course through these

murky waters is the Spirits Network, a “shoppable streaming

entertainment channel” that started in September 2019 with

around-the-clock programming. It’s availableondemandand

freeonlineorthroughitsapptoyourpreferreddevice,though

youneedtosignupwitha creditcardtoenableo

chasing.Byintegratingbuyingopportunitiesinto

content,it positionsitselfsomewherebetween

andQVC.AnAmazonLive,butforliquor.

Itairsbothlicensedcontentandorig

shows,whichcurrentlyconsistofabouta do

titles.#WhiskyWednesdaysisbuiltaround

themed,virtualtastings.ThehostofHome

BarHerois “liquidchef ”RobFloyd,who

walksyouthroughclassiccocktailprepa-

rations.BourbonpersonalityPeggyNoe

Stevensshowsuptodemonstratehowto

batchManhattans,andFlavienDesoblin,

whoownsBrandyLibraryinManhattan,

is a ubiquitouspresence.

Anytimea bottleis mentionedina show,

a littlepop-up“buy-bar”appearsinthe

lowerleftcornerofthescreen Clickthat and

you’retak

continues

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The concept is on firmer footing now that the coronavirus

has altered how Americans access their booze. In the first two

weeks of April, e-commerce for adult beverages rose almost

fivefold compared to the same period last year, according

to Nielsen Holdings Plc. Sales on Drizly, the largest alcohol

delivery app, have risen 300% since mid-March. Kantar, a data

insights company, suggests a third of these shoppers could per-

manently alter their buying habits.

Buzzell says the network has a subscription base in the tens

of thousands. A $99-per-month Enthusiast package includes

one bottle of midshelf liquor (think Bushmills 10) mailed to you

based on your flavor profile on the site. A $149 Connoisseur

membership bumps to top-shelf territory with a bottle of, say,

18-year-oldsinglemalt from the Glenrothes or Bunnahabhain.

Bothpaidtiersincludebarwareanda conciergeserviceto

highlyallocatedPappyVanWinkleandnotori-

usiveYamazaki25-year-oldwhiskies.

heplatform,it’seasytotogglethroughsnippets

f t ndingcontent,andbelowthatarerows

commendedprogramsyoucantailorto

drinkingspecifications.Mostfeatureno

thanthreeepisodes,butthecontentcon-

entlybrandishesimpressiveproduction

alues;expectmultiplecameraanglesand

tudio-qualitylightingandsound.

TheSpiritsNetworkhasno“interruptive

dvertising,”butthetrade-offis theinev-

ableappearanceofsponsoredcontent.

iquorbehemothDiageoPlcis oneofthe

rimaryspenders,andit shows:Affiliated

randssuchasDonJuliotequilaandBulleit

ourbonappearacrossthe“relatedprod-

ucts”sectionwearingconspicuousbanners.In

theoriginalprogramming,thecompany’smyr-

adbottlingsoftenenjoycenterstage.

I didn’tseeanysmallcraftproducerspart-

onthe platform,and I doubtthey havethe

forsuchanexpense—especiallynow.Theyrarely

theshowseither,whichis a shame.

nallywe’vereliedonlocalbottleshopsandbar-

tolearnwhat’snewandnext.Inanuncertain

e,whenin-personrelationshipsaren’ta given,

piritsNetworkcouldtrytappingintothatsame

apporttohighlightsomethingobscureyetsensa-

hentheydo,I won’thesitatetoraisemyglass.

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62

HAND: GETTY IMAGES. BOTTLES: COURTESY SPIRITS NETWORK

CRITIC Bloomberg Pursuits August 10, 2020

The Spirits Network offers a tantalizing taste of home shopping’s

possibilities for cocktail lovers. By Brad Japhe

AS SIPPED ON TV

tcornerofthescreen.Clickthat,and

kentoa purchasingpage.(The show

stoplayinonecorner.)Ifyouliveina

banarea,yourordercanarriveintwo

esuburbs take adayortwo.Harder-to-

uctscanrequirefivedays.

nse,theSpiritsNetworkactsas

tiertoconnectconnoisseurs

psthathavewhattheywant.

yarbitragetogettheprod-

ugha retailnetwork,”s ays

der and Chief Executive

ickBuzzell.

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