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Daily news and analysis about the food tech revolution

Thirstie

Haus Raises $4.5M for Direct-to-Consumer Spirits Business

California-based Haus has raised $4.5 million in seed funding for its direct-to-consumer approach to spirits that promises healthier ingredients, less alcohol, and a more transparent distribution process. The round included over 10 funds and 100 individual members contributing, according to TechCrunch, and included contributions from Haystack Ventures, Shrug Capital, Resolute Venture Partners, and Work Life Ventures, among others. 

Haus, which was founded by married couple Helena Price Hambrecht and Woody Hambrecht, makes a low alcohol by volume (ABV) apéritif it sells directly to consumers online. The company also offers an alcohol subscription service that functions much like a traditional wine club — members pay a monthly fee and receive discounted bottles of spirits delivered directly to their door. Members can receive one bottle per month for $35, two for $63, or six for $144.

Where Haus differs from other online alcohol services is in the products it offers. The founders were inspired to start Haus in order to offer a more health-conscious alcohol product than what one normally finds in-store and via subscription clubs. To that end, the company’s apéritif drink uses only natural ingredients and has a lower ABV than many spirits: 15 percent compared to the 35 to 45 percent found in most regular spirits.

That lower ABV content also allows Haus to ship their product directly to consumers in certain states, according to TechCrunch: “Woody, an experienced winemaker, identified a loophole that allows distributors to ship alcohol direct-to-consumer if the product is made mostly from grapes and is under 24% alcohol.”

At present, the apéritif concept is less popular in the U.S. than hard liquor or wine, but the lighter alcohol content speaks to the growing number of consumers interested in low- or no-alcohol beverages. And with more traditional services like Thirstie and Drizly already popular in the U.S., Haus’ emphasis on flavor and wellness could very well help it stand out from other alcohol delivery brands.   

Thirstie Launches Thirstie Access to Let Alcohol Brands Sell Directly to Consumers Online

Thirstie, who makes e-commerce software for liquor brands, today announced Thirstie Access, a solution that will let alcohol brands build and manage their own online storefronts. According to an email sent to The Spoon, Thirstie Access enables the direct purchase of actual booze from these sites, which is a first for the spirits industry.

Despite the uptick in online booze sales over the last few years, purchasing alcohol directly from a brand is tricky business in the U.S. There’s a three-tier system, where alcohol producers hand the product to wholesale distributors, who in turn supply retailers (aka the liquor store) that sell to the customer. Under this system, each tier is regulated separately and no one party can be involved in more than one tier.

The advent of online alcohol sales calls into question whether that system is antiquated and inefficient, seeing as it slows down the process of getting on-demand-crazed consumers their goods as fast as possible. Hence the arrival of companies like Thirstie.  

Since its launch in 2014, the Thirstie platform has acted as a kind of middleman between liquor companies and consumers, facilitating the purchase of alcohol online and connecting brands to its network of local retailers that can deliver the order to the consumer. Its software platform enables liquor companies to essentially bypass the distribution tier and send consumer orders to the retailer for delivery. As my colleague Chris Albrecht wrote last year, with Thirstie, brands, “can ‘sell’ their goods without actually selling them.”

The Thirstie Access tool changes that by letting liquor brands process and handle purchases directly from their own sites. In other words, they can finally add that “Buy” button so noticeably absent from most of these brands’ websites, which is something of a first for the spirits industry. Using Thirstie Access, an alcohol company will be able to quickly build an industry-compliant website from which it can sell its products to consumers. Companies using the Access tool will also be able to leverage Thirstie’s API and its network of retailers (who still have to do the actual delivering of the booze).

There are a few advantages to consumers being able to purchase directly from a liquor brand’s website. For one thing, it cuts out an extra step (or three) in the consumer’s buying journey — instead of getting redirected to a marketplace or liquor retailer’s site, the buyer can simply add items to their cart and hit “buy.” Direct purchasing also means liquor companies get access to their consumers’ purchasing behavior, which is nowadays considered the Holy Grail in online retail. The hope is that both of those things translate to higher direct sales for alcohol brands, particularly the independent ones who often have to fight hard for visibility alongside their more mainstream counterparts.

On that note, Thirstie will launch Thirstie Access with three indie spirits companies: Proper No. Twelve Irish Whiskey, RAMONA Organic Wine Spritzes and rum brand Ten to One. Proper No. Twelve will be available for delivery for residents of California, New York, Kentucky, and 15 other U.S. states. Further expansion is planned for 2020.

Thirstie said in the press release it will add “an extensive list” of brands to the Access platform over the next few months.