CHICAGO, April 28, 2020 (GLOBE NEWSWIRE) -- Spirit Hub, a Chicago-based private company that operates as an online destination for liquor enthusiasts and consumers to shop and learn about craft spirits, today announced its updated expansion strategy and released company growth data for the first time.
The self-funded company utilizes a network of proprietary technology and industry connections to serve customers the most comprehensive information on independent distilleries and craft spirits. Most craft spirits found on Spirit Hub’s platform are those that cannot be found on shelves at local grocery or liquor stores because in many cases the independent distilleries they come from don’t have a legal avenue to sell their product outside their home state. Spirit Hub helps these independently owned distilleries reach new customers by providing them a fully compliant way to sell their spirits direct-to-consumer in new markets.
“Spirit Hub launched a year ago to provide liquor enthusiasts the opportunity to order from our carefully curated, diverse collection of distilleries around the world in a convenient and unique experience, which otherwise would be prohibitively attainable,” said Michael Weiss, CEO and Founder of Spirit Hub. “We are an industry disrupter doing something that no one has ever done before. Due to the overwhelming response to Spirit Hub by our customers, in less than one year, we grew to nearly 2,000 craft spirits from more than 200 distilleries, including premium whiskeys to hard-to-find gins and vodkas.”
Growth and Market Expansion Strategy
- Will expand in up to five new markets this year – Florida, Michigan, Massachusetts, Missouri and Indiana, with continued user penetration in Illinois
- Plans to be in all major U.S. markets/cities by 2025
- Expand distribution channels with national grocery chain by 2021
- Plans to expand internationally, beginning in 2021
Spirit Hub is a Market Leader
- First-to-market with a legally compliant website and mobile app to sell and deliver craft spirits online
- The only legally compliant online retailer of craft spirits that is lawfully authorized to deliver straight to consumers’ doors
- Success unraveling the Three-Tier System – between states (collect lost tax revenue), small batch distilleries (opens new markets to increase sales) and consumers (experiential education on unique craft spirits), creating a win-win-win for Spirit Hub participants
- Proprietary e-commerce technology minimizes cost and maximizes flexibility, by providing the legal purchase of a wide selection of craft spirits from hundreds of craft distilleries across the U.S.
- Scalable business platform that addresses the pain points craft distillers face when expanding their markets
- Team of liquor enthusiasts and seasoned industry veterans in FinTech, e-commerce solutions and eRetail solutions
“As craft spirits continue to rise in popularity, the number of independent distillers is growing to meet consumer demand and Spirit Hub is driving a big chunk of that growth for our partners,” said Weiss. “Spirit Hub’s business model is suited to accommodate the on-demand nature of today’s consumer and current delivery-centric economy, which is why this is the perfect time for us to expand our services to new markets and why Spirit Hub has seen solid growth month-after-month since it launched.”
Spirit Hub Growth
- Represents one third of all craft spirits distilleries – the fastest growing segment of the spirits industry
- Uniquely positioned to power the growth of out-of-state distillery sales by 59 percent by 2023 and dominate craft spirit industry
“We are a category leader for online purchase and delivery of alcohol sales, and we will capture a significant portion of this unique market,” added Weiss. “By the year 2025, we believe one in five people will order alcohol for home delivery through apps like Spirit Hub, and we plan to capture a significant percentage of that market.”
Market Size
- 15.5 percent year-over-year-growth in the number of active craft distillers in the U.S. (1,835 in August 2018)
- Craft spirits retail sales reached $3.7 billion in 2017 at a growth rate of 30 percent CAGR (2012-2017)
- Online grocery sales more than doubled to $26 billion (2016-2018), and is projected to reach $51 billion in 2020
Given the significant market opportunity, Spirit Hub is evaluating potential strategic partnerships in order to accelerate its nationwide expansion strategy. For more information about Spirit Hub, please visit www.spirithub.com and please direct any inquiries to partner@spirithub.com.
About Spirit Hub
Spirit Hub is an online hub for liquor enthusiasts and a destination for the most comprehensive information on independent distilleries and craft spirits. The company is a legally compliant online retailer of craft spirits that is lawfully authorized to deliver an exceptional collection of craft spirits straight to your door. Spirit Hub helps connect distilleries from around the world to new markets and introduce craft spirits to customers looking to broaden their horizons. Visit www.spirithub.com for more information about Spirit Hub, its independent distillery partners and the current inventory of craft spirits available.
Media / PR Contact:
Uproar PR for Spirit Hub
Brittany Johnson
press@spirithub.com
bjohnson@uproarpr.com
312-878-4575 x246