The word “blockchain” may leave a sour taste in the mouths of skeptics, but beverage enthusiasts are drinking up the digital world and its far-reaching potential.
The global wine and spirits market is estimated to reach $333 billion in 2023 and is expected to grow annually at a compound annual growth rate (CAGR) of 5.2 percent between now and 2027.
But demand for exclusive community offerings and tangible solutions to the persistent counterfeit market has never been higher. Subsequently, wine and spirits producers are pivoting to the blockchain as their saving grace.
One market frontrunner is BlockBar. Founded in 2021, the blockchain-based platform was launched with the purpose of doubling down on proof of ownership and provenance implications across the luxury beverage arena.
BlockBar is targeting young enthusiasts by transforming their favorite tipple into NFTs. Photo: BlockBar
By riding blockchain’s boom in popularity, the asset-backed community made $7 million in sales and onboarded more than 300,000 users within the first 12 months of launching.
Today, BlockBar’s playbook includes winning over young beverage aficionados and unlocking the demographic’s spending power.
Below, Jing Daily speaks to Jamie Ritchie, Chief Operating Officer at BlockBar and former Worldwide Wines and Spirits chairman at Sotheby’s, to discuss how the advent of Web3 is impacting producers’ approach to the wine and spirits market, plus the blockchain’s potential to combat beverage counterfeits.
The blockchain is offering producers a solution to the age-old counterfeit market crisis. Photo: BlockBar
How is the blockchain disrupting the luxury beverage industry?
Every industry is going through a period of change. Blockchain is allowing greater efficiency and transparency. It’s going to grow and scale over a period of time as people understand the benefits of it, which include verifiable provenance, assured authenticity, and the transparency of ownership information. It also obviously appeals to a digitally savvy audience. Producers are going to need to think about who the future consumer is and who’s going to be buying their bottles.
What is the size of this future opportunity?
The spirits market is a multi-billion dollar business, and the global beverage economy is on its way to reaching over $1.5 trillion in value by the end of 2030. The blockchain is also growing significantly. This new distribution channel is way more efficient and scalable and can truly transform the distribution of wines and spirits globally.
What role does BlockBar play in cultivating strong communities of beverage enthusiasts?
Storytelling is super important. We continually remind ourselves that although our business is to buy and sell wines and spirits, it’s also our consumers’ passion and joy. So, you have to bring some of that fun and passion to the selling process through routes like gamification. There’s also the secondary marketplace, where once an investor has bought a bottle through an NFT, they can store, gift, resell, or redeem it. The marketplace keeps these releases alive and vibrant in front of people.
Collaborations with the likes of Bored Ape Yacht Club are appealing to younger collectors. Photo: BlockBar
What other opportunities does the blockchain offer the luxury beverage industry beyond community benefits?
I’ve seen a number of counterfeits across both wines and spirits. It’s a huge issue. The great thing about BlockBar’s blockchain model is that everything comes directly from the producer. So, the NFT is minted from the producer’s wallet, then transferred to the consumer’s wallet. As long as the bottle remains within the ecosystem, the holder will always have that traceability and access to provenance and authenticity. These bottles move from pillar to post, so the blockchain really works from that perspective.
Why do you think onboarding onto the blockchain makes business sense for producers in today’s climate?
[The blockchain] provides traceability of [brands’] products that they don’t have in the traditional system, so they can really understand more about the demographics of who owns them, where they are, how many have been redeemed, and how many have been consumed. There’s a lot of data that they have access to that they wouldn’t have traditionally.
This news is republished from another source.
