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Our Reason for Being
To provide solutions for the problems of distillers and customers alike.
The Distillers' Problem
The production of craft spirits has been on the rise for over a decade and the market for such products is as large as it has ever been. So why are craft spirits distillers finding it difficult to sell their product? Niche distillers are faced by the three-tier distribution system. You cannot sell your product easily out of state due to the current limitations. Therefore, your would-be customers all over the country are left untapped because they cannot find or buy your product.
The Customers' Problem
Consumers want to try new craft spirits, but they are difficult to obtain. They are missing out on thousands of craft brands that are limited to sales within their local state. Most liquor stores don’t carry much outside of the worldwide distributed brands. When they do carry craft brands, they are often difficult to navigate. The “experts” at liquor stores can’t are unable to provide essential information on all of the spirits that they carry. This means the customers can't always get what they want under the current system. So they need a new system.
What is the Solution Distillers and Customers Have Been Looking For?
Spirit Hub is the solution.
We Are Compliant
Spirit Hub has done the legal legwork. We were issued a Digital Alcohol Retail Liquor License on January 2nd, 2017. This allows us to sell and ship directly to consumers anywhere in the state of Illinois while remaining three-tier compliant.
Level The Playing Field
According to the Distilled Spirits Counsel, US liquor sales are worth about $24 billion. High End and Super Premium spirits make up 28% of those sales. What's more is sales of liquor in Illinois are worth over $2 billion. And again, High End and Super Premium spirits make up 28% of those sales. We believe that number will increase once craft distillers have the same advantage as worldwide brands.
Easy Transition For Distillers
Spirit Hub provides an easy transition for craft distilleries to sell outside of their state by providing a low-cost platform for them to reach the Illinois marketplace.
Easy Product Access
Spirit Hub connects would-be customers directly with your brand. A captive audience can easily discover and buy your products, at anytime and from anywhere.
How Does This Work?
More Reach. More Customers. More Money.
The customer arrives at the app or site. They browse and can order whatever they want, after they have confirmed their age, location, etc.
The liquor is then selected and packed in Spirit Hub's retail warehouses, then sent by courier directly to the customer.
Once the customer receives their product, the sale and additional customer data is recorded in the stock and sales dashboard that every distillery has access to in order to monitor commerce.
Craft Spirits are on the Rise
What the Research Shows
There are over 15,000 liquor products seeking state level distribution. Of those, only 20% achieve permission. That leaves 80% of manufacturers unable to distribute their products while consumer interest in Boutique brands has never been so high. Don't take our word for it, just see the articles below.
American Craft Spirits Association
The U.S. craft spirits market volume (cases) reached 5.8m cases in retail sales in 2016, growing at an annual growth rate of 18.5%. In value terms, the market reached $3.0 billion in sales, growing at an annual growth rate of 25.0%. The market share of U.S. craft spirits reached 2.6% in volume and 3.8% in value in 2016, up from 1.0% (volume)/1.2% (value) in 2011 and 2.2% (volume)/3.0% (value) in 2015.
To see the full write-up, visit
http://www.americancraftspirits.org/wp-content/uploads/2017/10/2017-Craft-Spirits-Data-Project.pdf
Fortune
In a broad study backed by the American Craft Spirits Association that is being billed as a first-of-its-kind deep dive into the craft spirits movement, the industry has reportedly achieved $2.4 billion in retail sales in 2015, growing at a compound annual growth rate of 27.4% in volume. The market share for craft spirits reached 2.2% in volume last year, up sharply from 0.8% in 2010.
To see the full write-up, visit
Chicago Tribune
Looking at the growth through another measure, there were between 25 and 50 small and independent distillers in 2000, said Frank Coleman, spokesman for the Distilled Spirits Council of the United States, a trade group representing the spirits industry. Today, there are more than 2,000 of them, said Coleman, who called the growth "stratospheric.
To see the full write-up, visit
http://www.chicagotribune.com/business/ct-changing-spirits-industry-0911-biz-20160908-story.html
Market Watch Magazine
In 2003, there were 60 craft distillers operating in the United States. Today, that total is 760, according to the American Distilling Institute (ADI), and a further 200 are under construction.
To see the full write-up, visit
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224-251-8459
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info@spirithub.com
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