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Spade & Sparrows successfully uses direct to consumer (DTC) sales as on-ramp to the 3-tier system
“We are incredibly grateful to have secured retail partners such as Target, Walmart & Total Wine. Vinoshipper has been a huge part in opening those doors for us”, stated Alex Lightman, Chief Operating Officer at Spade & Sparrows.
At Vinoshipper, we have long stated that DTC sales can serve as an on-ramp to 3-tier distribution. An excellent example of this comes from wine brand, Spade & Sparrows Wine by Kaitlyn Bristowe.
Spade & Sparrows launched May 2019 with the goal of becoming the go-to wine brand for female millennials. In three years’, they have been successful in doing that. Their products have shipped direct to customers in 45 states, and they have been able to present compelling cases to distributors and secure large retail partners.
A foundation of Direct to Consumer
When Spade & Sparrows began, they wanted to be different. Instead of traditional marketing campaigns, they leveraged social media, through TikTok and Instagram, to present the brand and connect with consumers and retailers. The benefit was they reached a national audience quickly. The challenge was then navigating “the complexities that come with selling wine online”, explained Lightman, and getting the product in the hands of the consumer.
The Spade & Sparrows team was small. Lightman explained, “they didn’t have the resources to take on all of the highly complex compliance and reporting responsibilities internally that come with selling wine direct to consumer”. Spade & Sparrows had a great brand and great products but needed help in bringing their product to their community.
Vinoshipper was the solution.
Spade & Sparrows’ set up an online release with Vinoshipper and it was a huge success. The wine sold out in a matter of hours. What followed were further sell-out releases and the creation of The Big Wine Guy Club and Really Big Wine Guy Club, Spade & Sparrows’ two wine clubs.
Wine Clubs were an excellent way for Spade & Sparrows to secure recurring revenue and connect even further with their customers. Spade & Sparrows setup clubs in the Vinoshipper club portal, used the sales data to reach out to previous purchasers and grew the club to where it is today.
The on-ramp
Spade & Sparrows just recently announced that they will be launching in all 142 Target locations across the state of Texas. Lightman noted that, “without Vinoshipper we wouldn’t have been able to build the case study that our distributors and sales team have used to convince retailers to stock our brand on their shelves.” Spade & Sparrows used the power of their brand and the consumer demand to present a case to Target that they could not ignore.
Their success illustrates how DTC sales can help build a national following and assist in obtaining nationwide distribution.
For those looking to follow in Spade & Sparrows’ footsteps, Lightman advised , “ensure that you are incredibly passionate about your product, have a differentiating factor and remember customer service is king”. Lightman also recommended, “anyone entering the space, use Vinoshipper as a partner”.
Empowering through choice
DTC and the 3-tier system can work in perfect unison. Utilizing both channels, brands benefits from having the choice of how to distribute their goods. It allows for brands to test the market before wholesale distribution and build brand awareness. Similarly, it limits risk for wholesale distributors and retail partners as they get to receive market data on brands that have already been tested in the market. For consumer, they can pick up their favorite brands in store or have the convenience of ordering to their home.
When asked to summarize how DTC sales helped in creating brand power for entering the 3-tier market, Lightman concluded, “Vinoshipper allowed us to create a powerful community of wine loving women whose support has enabled us to show major retailers that we have a product that sells”.
Start your journey
If you would like to get in touch about Vinoshipper services and its ability to help launch or expand your brand, then please reach out to customerservice@vinoshipper.com, referencing this article, and we will be more than happy to help.
About
About Vinoshipper
Vinoshipper is an end-to-end compliance, tax, and e-commerce platform that gives wineries, distilleries, and other alcohol producers the ability to sell directly to consumers while navigating the complexities of regulatory compliance and tax collection in real time. Every sale through the platform is guaranteed to be compliant.
By employing subject matter experts that work directly with regulators, the company is committed to helping producers comply with all laws, including age verification prior to purchases, state tax collection and reporting, and package tracking.
The company facilitates the expansion of direct sales across the United States for small and medium-sized producers and gives consumers more variety and brands to choose from. This helps create open and fair competition by removing barriers for independent businesses.
With more than 15 years of continual development and reinvestment in the platform, Vinoshipper is now the market leader in direct sales compliance and business software.
Headquartered in Windsor, California, Vinoshipper was launched in 2006 to help small producers. It is among the fastest-growing companies in the heart of wine country.
About our CEO & Founder
Steven Harrison is the President & CEO of Zero Link Markets, the company that operates Vinoshipper, an e-commerce and compliance platform for direct sales of alcohol products. The business facilitates small and medium-sized alcohol producers to sell and ship their products directly to consumers. He has more than 25 years working in finance and operations management and has been involved with several early-stage businesses, ranging from software companies to medical devices and consumer products.
As the co-founder of Zero Link Markets, Steven had the vision to create the Vinoshipper platform to help small businesses comply with the complex, multi-jurisdictional regulations and reporting requirements involved in selling wine, beer, and spirits.
Sixteen years after it started in 2006, the platform is at the forefront of the Direct-to-Consumer (DTC) movement, helping to transform and modernize the industry which dates to the Prohibition era. With more than 2,500 producer clients using the platform, Vinoshipper is one of the largest compliance businesses in the country.
When he is not helping his team with the rigorous job of compliant sales and shipping, Steven spends most weeks talking with public officials about the policy nuances related to DTC and advocating for new laws that support the safe and legal shipment of alcoholic beverages.
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