The announcement comes as the company has scaled from roughly 40 brands in January 2020 up to 250 in July of this year.
“The speed and momentum Speakeasy Co. has generated over the past year is surreal,” Josh Jacobs, co-founder and CEO, said on Tuesday. “We are humbled by the milestone and grateful for the support of so many throughout this journey, but this is just the beginning for Speakeasy Co. The team remains as committed as ever to our mission of providing partners with the solutions and services essential to scaling their businesses.”
The company has helped alcoholic beverage brands integrate into the rapidly growing world of e-commerce. After partnering with Speakeasy Co., spirit brand Dano’s Tequila raised sales from just under $5,000 in Q2 2020 to $25,000 in Q1 2021, while Portuguese-based vendor Ginja9 grew monthly revenue from a lowly $750 to over $30,000 within eight months.
In Jacobs’ words, this is “just the tip of the iceberg” for Speakeasy Co. The International Wines and Spirits Record (IWSR) projects that the total value of U.S. alcohol e-commerce will grow sixfold from 2019-2024, and with 14,000 spirit brands alone, the company’s ceiling is high.
Speakeasy Co.’s expansion won’t come without challenges, though. While online alcohol sales are booming, it’s still an emerging market, and many brands aren’t even aware that a solution like Speakeasy Co.’s exists.
“[Direct-to-consumer] is such a paradigm shift from the 88-year-old model that has existed since Prohibition, and thus many brands are not equipped to fully maximize our offering, which was the catalyst for launching our digital marketing services,” Jacobs explained. “Ultimately, there is a lot of education for both the market at large and with existing partners as we forge a brighter future that is more convenient for consumers and empowering for brands.”
Shopping for alcoholic beverages online is a relatively foreign concept for most buyers, and as a result, many brands aren’t actively looking for e-commerce solutions. As a result, the challenge for Speakeasy Co. becomes one of raising awareness around its service.
The potential value in the direct-to-consumer alcoholic beverage industry is tantalizing. The trend of shopping for booze online is here to stay, and with thousands of brands having yet to capitalize on online direct-to-consumer sales, Speakeasy Co. has a war chest of potential partners. It’s just a matter of convincing them.