A new trend is growing across the drinks industry; a new way of doing business, and that’s crowdfunding.
In the last two years, this fundraising model has been responsible for the arrival of Four Pillars Gin, Naked Wines and SOFI Spritz, to name a few, and is expected to fund the launch of a number of others in the coming months.
While for many crowdfunding is a solution to raising that much needed initial capital for the launch of a product, project or idea, for example, these brands have discovered that crowdfunding has a number of other benefits for businesses just starting out.
Stuart Gregor, co-founder and owner of Four Pillars, who embarked on his own crowdfunding journey in 2013, says crowdfunding is not only a great way to generate interest among consumers, but also to creates a story for the brand and garner publicity.
Engaging an audience before the product launch, Gregor says, is a recipe for success. Not only does it provide assurance that there’s a market for the product being launched, but the “crowd” – your initial customers – also become advocates for the brand, Gregor adds.
As a result, Gregor says it gives distributors the confidence to trust that the brand has the foothold to be successful, as was the case for Four Pillars, who sold out of their first batch within just four days…
Following the success stories of these brands, we’ve taken a look at how crowdfunding has translated positively for each and whether or not crowdfunding could be the future for many more.
Four Pillars Gains Loyal Online Following via Pozible Crowdfunding Campaign
Set-out to sell 150 bottles of Batch No_1 gin in just four weeks, Four Pillars engaged the online community via the use of a Pozible crowdfunding campaign.
However, no one could have predicted the loyal following that Batch No_1 would receive, with 150 bottles snatched up in the first 8 hours and 420 bottles sold in just four days.
The Pozible campaign took place in November 2013, which meant that whilst the gin was being launched to trade in December, the first bottles of Four Pillars were in fact being delivered to the homes of the 300 founding members of the Batch No_1 Club, with a number of happy snaps being documented on social media along the way.
The first official launch to trade took place at Melbourne’s famous Gin Palace, where the distinctive style of Batch No_1 and its flavour profile was immediately praised.
This was followed by an intensive reaction on social media, where dozens of tags and comments flooded Instagram and Twitter alongside an equally large level of Facebook engagement.
It is believed by the members of Four Pillars team that the key to receiving a mass online following was due to the publishing of “authentic, charming, visually rich content, as well as timely and personal responses to every comment or post” via each social media channel.
Today, Four Pillars is one of the most well known and popular craft gin brands on the market in Australia. Absolutely knocking out their initial target of $10,000, Four Pillars received $31,190 from their first campaign.
Naked Wines Restructures Angel Membership Access Due to Crowdfunding Success
Naked Wines has experienced unprecedented success with its crowdfunded business model, which involves the enlisting of consumer support to commission bespoke wines directly from independent winemakers.
By December 2013, the Naked Wines crowdfunded business model has flourished so much that the company experienced a gap in supply and demand, which led to an exhaustion of stock.
This prompted the introduction of a waiting list for new Angel members. Launched on March 20 2014 via the Naked Wines website. Now, the waiting list is available for anyone to join and the average time for an application to be approved is approximately 40 days.
While new (non-angel) members are still able to purchase wine online, those individuals that have gained Angel status now enjoy the benefits of exclusive access to new wines, wholesale prices, tastings and a consumer rating system in return for a minimum and affordable spend of $40 per month.
Since the company’s inception, more than 25,000 Angels have contributed approximately $1 million per month to eighteen Australian wine makers. Among them is Sam Plunkett, who was taken on by Naked Wines following the unfortunate buyout of his family-owned business – Plunkett Fowled Winery.
Plunkett now works at the Naked Stables, where he produced an astounding 30, 000 cases of wine in 2014.
When asked to describe his experience with Naked Wines, Plunkett replied that the support he has received from them had been nothing short of amazing.
“Having access to funding upfront enables us to ‘pay it forward’ to our suppliers; working with Naked Wines is having a positive impact on the whole community, there’s something a bit magical about the whole thing.
“Best of all, I’m able to focus on what I’m passionate about, which is making the best wine I possibly can at a price that really makes it accessible to everyone.”
Sofi Spritz Secures National Distribution Via Pozible Crowdfunding Creativity Campaign
Like Four Pillars, in 2014, SOFI Spritz reached national distribution via its use of a Pozible crowdfunding campaign.
Made from local riesling, blood orange, bitters and sparkling water, SOFI is an Australian white wine spritzer with a crisp, bittersweet Mediterranean flavour influence.
With initial reaction to the product at local farmer’s markets and in-store tastings positive, founder Tom Maclean made the executive decision to launch a $10, 000 Pozible crowdfunding campaign. It was believed that this would provide the funds necessary to undergo some much-needed packaging improvements.
The Pozible crowdfunding campaign was a success in three major ways:
- In contacting bloggers and offering free samples, the product received a wealth of positive praise, which worked as valuable PR.
- In creating a Facebook event that corresponded with the crowdfunding cut off date, supporters were continuously reminded to contribute.
- In sharing SOFI’s journey on Instagram, potential consumers were able to identify with both the product and brand, creating awareness and establishing positive relations.
Since launching the Pozible crowdfunding campaign, SOFI has reached its goal – securing distribution with major national liquor outlets including Dan Murphy’s, Kemenys and Cellarbrations.
When asked about his experience with crowdfunding Maclean stated: “it was a natural and practical option; we didn’t have a large marketing budget to fall back on so it was a great way to work out the appeal for the product and develop growth and personality from the onset.
“The people that were responsive to crowdfunding ended up being the people that we wanted to create a product for, so it was a good match.”
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