PM Spirits

Provider of Geeky Spirits

I have a new product; How should i approach the market?

Nicolas PalazziComment

When launching a new spirit, it's not just about pushing a product or moving boxes.

Saturate your own market/state. Get your product at those retailers/bars/restaurants, the ones who understand, appreciate, and do care. This is how you build a foundation, a loyal customer base that'll follow you, possibly advocate for you.

DTC - direct-to-consumer - partnerships are a strong play. Take Barcart, for example (I have no dogs in that fight, I don’t get any money by mentioning them). They bridge the gap between you and multiple retailers across the US, boosting your product's availability big time. Suddenly you're not just stuck selling your stuff in your own state anymore while not having to have a wholesaler in those states.

Because finding a good wholesaler is key and also tricky. Like in any business, a few are great, some are good, and many don’t do their job. COVID didn’t help as it created a lot of turnover in many staffs, sometimes for the best and sometimes not. Finding a good wholesaler takes time. Hurry things up because your ego tells you you need to be in 10, 20, or 50 markets by the end of Q3, and chances are you are going to link up with the wrong people. By the time the staff has been trained, the first PO shipped out, the very first market visits under your belt, you will get a feeling that this is not going to work out. 8 months were lost. Another 6 months to make sure your last conversation did not change the dynamic. Now you are looking for a new partner. 18 to 24 months have been lost.

So build your brand, your reputation, your leverage first. Be the master of your own destiny. When you do decide to work with wholesalers, make sure it's at a time when you've already got momentum, when you've already got a story to tell. And that you picked the right partner.

Community engagement is super important. This isn't about bombarding folks with sales pitches. It's about tapping into those spirits groups, those who are passionate, those who know their stuff, those who are genuinely interested. Get into groups of like-minded individuals on Facebook, leave your ego at the door, ask if you can send out samples, and ask for people's honest feedback. When asked, a lot of enthusiasts love to share their thoughts, which are invaluable. But this is NOT about trying to sell under the covert of looking like you are not; people are not stupid, they will see you a mile away. It's about building genuine relationships with people who might get what you are doing and might want to help.

Thoughts on strategy:

  • Limited releases, maybe a couple of times a year, sold exclusively through your DTC channel can create a buzz.

  • Make sure you've thought about your prices. Discrepancies cause confusion. A well-thought-out pricing strategy ensures that if/when you eventually move to the three-tier system, everyone involved – retailers, wholesalers, you – makes a decent margin.

  • Don’t sell through DTC the stuff you are selling via the 3 tier systems; competing with your wholesalers is just going to upset them.

  • Offer some of the relevant groups and/or retailers a special single cask pick.

  • Keep growing your presence on your home market.

  • Network and learn about which wholesalers seem to align with your goals and values.

  • Use word-of-mouth as a key growth engine.

  • Be real/genuine, share the struggles, present yourself as a human with flaws and such.