If there is anything that the pandemic has taught us over the last 12+ months is that consumers want to order their distilled spirits online and get it delivered to their front door. From a consumer point of view it sounds simple but from an industry and government regulation point of view there is nothing simple about it. Do it right and there are many winners. Do it wrong and a distillery could lose their license to distill.
Up until last year only a handful of states allowed Direct to Consumer shipping, known as DTC in the industry. There are many challenges in delivering spirits intrastate and interstate. Challenges include antiquated laws that were nearly all written long before the internet ever existed. At a recent distilled spirits industry event Distilled Spirits Council – DISCUS President and CEO Chris Swonger identified DTC as a top priority for the industry for 2021. Innovative companies are popping up to help fulfill the need for this new opportunity.
One of the industry players is Speakeasy Co. and they’ve just announced a new $2 million investment into their platform. Speakeasy calls itself a technology company and e-commerce platform. They cover the beer, wine and distilled spirits industries. Their latest round of funding was led by Trog Hawley Capital LLC with participation from other notable investors, including Revolution’s Rise of the Rest® Seed Fund.
Since January 2020, Speakeasy Co. has grown from roughly 40 to over 280 brands on its platform. The company says top brands are selling hundreds of thousands per month. Users of the platform include many emerging brands and major suppliers, spanning ready-to-drink beverages, wine, beer, spirits as well as Tesla Tequila.
“We are humbled by the success generated to-date and could not think of a better group of strategic partners to help take the company to the next level,” said Co-Founder and CEO of Speakeasy Co. Josh Jacobs. “We intend to leverage the unique expertise and experience these investors bring across various facets of our business.”
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This additional growth capital comes less than a year after Goat Rodeo Capital, a venture capital fund focusing on early stage opportunities in the Alcohol Beverage space, provided Speakeasy Co. with a strategic investment that fueled recent growth.
“We are truly impressed with the business that Josh, Michael and team have created, focused on the intersection of two notable mega trends, premium craft alcohol and e-commerce,” said Alexandru Monul, President of Trog Hawley Capital LLC. “Not only do we recognize the tremendous value of what Speakeasy Co. has created for both brands and consumers, but also really admire the leadership team that Josh and Michael have put into place and look forward to being part of Speakeasy Co.’s bright future.”
Speakeasy Co.’s Co-Founder and COO Michael Bowen comments, “The confidence being placed in Speakeasy Co. through this latest round validates our unique value proposition to the wider beverage alcohol sector. The time and effort poured into developing our state-of-the art technology and logistics has put us on the fast path to becoming the leading e-commerce and fulfillment platform in the industry.”
“The pandemic highlighted the need for all retailers to establish and nurture their e-commerce platforms,” said David Hall, Co-Managing Partner of Revolution’s Rise of the Rest Seed Fund. “It also led to a greater appreciation for premium wine and spirits. Speakeasy Co. is helping nascent wine and spirit brands grow outside their home markets with superior e-commerce tools and strategies. We are proud to back another growing company outside of the coastal tech hubs.”
Speakeasy Co. will use the additional funds to further fuel growth and bolster services for brand partners and to continue to optimize consumer experiences. The investment lands in advance of the anticipated holiday season, thus enabling Speakeasy Co. to launch several holi6day-related endeavors.
Find Distilled Spirits Direct to Consumer – DTC eCommerce Solutions.
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