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Why E-Premise Revenue is so Important for Wine & Spirits Distribution

On-Premise. Off-Premise. Two concepts that we, in the beverage industry, are all too familiar with. But now, there is another universe to think about when it comes to developing an alcohol brand and selling products: E-Premise. 

What is e-premise and why are we talking about it these days? At LibDib, we define e-premise as a “direct to consumer” brand built primarily online. DTC is in quotes because these programs are within the three-tier system and all orders to consumers are fulfilled via licensed retailers. Makers commit time and marketing dollars to drive consumer brand building and sales through a fourth-tier platform, which drives the retailers to then purchase via LibDib as the distributor. But, one of the more interesting factors of these programs is the data collection. These fourth-tier platforms provide customer data back to the Makers, which can be used in various ways. This is a new-ish development in the wine and spirits industry.  

In past years, alcohol brands were separated from their end customer: the buyer who was actually consuming the final product by both the wholesale tier and the retail tier. And there was no easy way to gather that information about whose lips that liquid was hitting. 

Not anymore. Just a few of LibDib’s e-premise partners include Speakeasy, Barcart, Thirstie, Cask and Barrel, and ReserveBar, and they do just that….provide compliant e-commerce sales via three-tier retail partners while giving data and insights back to the Makers. 

The e-premise vendors we work with enable Makers to sell their wine and spirits products to consumers via the Maker’s own website or the platform’s own website. Keep in mind this does not include DTC e-commerce like Wine.com (retailer). We define those businesses as online retailers (e-tailers). Here at LibDib, we categorize our e-commerce retailers as off-premise sales and consider it a different channel (still important and one to pay attention to) than e-premise. 

The key to e-premise is customer data collection back to the Maker. 

So, why would a licensed wholesale alcohol distributor like LibDib care about e-premise? Because the platform’s retail partners (like the ones we mentioned above) need to purchase products from a licensed distributor to make the transaction compliant and legal. We make that process seamless and efficient when it comes to time and cost. And, it allows for brands to pick and choose their path to market, investing in the channels that are most important to them. Finally, LibDib’s reduced mark-ups create a more efficient path to market, therefore providing brands with more capital to invest in digital marketing programs. 

At LibDib, we value our e-premise relationships. We work with Makers to facilitate communication with the e-premise platform that is right for them and ultimately the retail Buyers. We work closely with our wine and spirits brands to help guide them in this process. As an e-commerce-based business ourselves, LibDib is very knowledgeable about these opportunities and what is the right fit for an emerging or online-only brand. Given COVID, and how online sales are booming, consumers’ shopping habits have changed. An online presence, whether it's a focus on e-premise or e-tailers, is now a required channel strategy for wine and spirits Makers. Normally, it can be overwhelming to start these relationships unless you have an awesome, engaged distributor like LibDib. 

Ultimately, Makers hold the key when it comes to brand building an alcohol brand online and e-commerce success. LibDib is a great solution as we already work with the key players and can recommend a partner that is right for you. 

If you’re a wine or spirits Maker looking to build your brand in the e-premise, reach out. We’d love to help you. And if you have questions after reading this blog post, check out What is E-Premise or What’s Involved Working with an E-Premise Partner in our Help Center for more details on what’s required.