The Future of Alcohol Brands is Online: Why eCommerce is No Longer Optional

What do Allbirds, Hims, Shopify, AU Vodka, and HubSpot have in common? Beyond their success, these brands leverage Shopify and HubSpot to fuel their growth. But more importantly, they were all built online. When was the last time you saw any of them on a store shelf? Probably never.

When asked recently about eCommerce in the alcohol industry, I wanted to shout from the rooftops—change is happening. It’s not a matter of if, but when all alcohol brands will need to embrace this shift.

The Traditional Launch Model is Outdated

A decade ago, launching a new alcohol brand required a budget that looked something like this:

• Small-scale launch: $500,000 - $1,000,000

• Mid-tier brand: $1,000,000 - $3,000,000

• Large-scale national launch: $3,000,000 - $10,000,000+

These high costs put independent brands at a serious disadvantage. But eCommerce has changed the game, lowering the barrier to entry for entrepreneurs willing to take a digital-first approach.

The Rise of Alternative Distribution Models

Let’s talk about Park Street, LibDib, American Spirits Exchange, and Amroth. Instead of relying on traditional distributors like RNDC and Southern Glazer’s—who take 35% margins for sales and marketing support—brands now have the option to use lower-cost "clearing houses" to enter new markets. With support from companies like Greenhouse Agency and BevAssets, or strategic in-house sales blitzes, brands can establish a presence without the hefty distributor fees.

If you’ve ever spent days doing market ride-alongs, only to get your product on a handful of shelves, you know the frustration. Clearing houses shift the responsibility to the brand to ensure sell-through, but they also give brands more control over their success.

How to Drive Market Penetration Without a Big Distributor

Once your product is on the shelf through a clearing house distributor, the next challenge is expansion. But how do you build market presence without:

• A powerhouse distributor funding sales incentives and activations?

• Hiring a dedicated territory manager?

Here’s the catch: Big distributors and investors want proof of success before they take you on. But how do you demonstrate success without widespread distribution? The answer is eCommerce.

When your brand is just one of many in a distributor’s portfolio, it rarely gets the attention needed to educate retailers or consumers. However, with short-form content, digital marketing, limited-time offers (LTOs), value-added packaging (VAPs), and “envy buying” tactics, brands can build hype online—creating the leverage needed to drive retail sales. Build your brand online, and retail success will follow.

Digital Marketing is the Missing Piece

Most emerging brands overlook digital marketing. Ask yourself—how often have you visited a national portfolio brand’s website? Likely never. That’s because the big players don’t need to drive traffic there. They launched their brands 20 years ago with massive in-market budgets.

But brands like AU Vodka are changing the game. Have you seen their ads? Even if their product isn’t on a shelf in your state yet, you can buy it online. Their aggressive online presence is building market hype, demand, and leverage for retail expansion.

The Smart Strategy for Craft Brands

For craft brands with smaller budgets, an online-first strategy makes sense. Instead of spending $5K per month on traditional marketing, use that budget to:

1. Target a geographic area where you want to expand.

2. Build hype through digital campaigns.

3. Use sales data to identify your core audience.

4. Refine your strategy, rinse, and repeat.

5. Present sales data to distributors and retailers as proof of demand.

The conversation with retailers is no longer, “Try it—do you like it? Will you buy it?” Now it’s, “Here’s our demographic, our top-performing SKUs, our geographic hotspots, and seasonality trends—why aren’t we on your shelf?”

The Industry is Turning a Corner

The alcohol industry is slowly but surely embracing the direct-to-consumer model. Regardless of how things were done 10-20 years ago, the future is digital.

If you're looking to scale your brand online, let’s talk. Rogue & Rye Consulting can help you navigate the shift and position your brand for success in the modern market.