High-End Spirits Brands Embrace DTC Model

The luxury goods category continues to embrace the digital-first economy as ultra-high-end spirits company Louis XIII Cognac has opened a direct-to-consumer channel.

The brand first dipped its toe into retailing with boutiques in Beijing in 2016 followed by London and Xi’an in 2017. Now the company is taking the brand and the shopping experience into what it calls an immersive e-boutique platform that takes visitors on a journey through its brand as well as through its products. The boutique offers access to an exclusive online concierge service, personalization services and limited edition products.

“The e-boutique offers a unique user experience that enables visitors to explore the world of Louis XIII by conveying a sense of perpetual movement and exquisite craftsmanship,” the company said in a statement. “It reimagines the online purchase experience thanks to exclusive functions that provide the client with a deeper insight into the Louis XIII story. Louis XIII sets a new benchmark with this approach: transforming online purchasing into a cultivated luxury experience offering for example private personal contact with Louis XIII’s Ambassadors, access to limited edition products, customization and an instant premium delivery.”

In addition to giving clients the ability to register for international events, the website also offers custom engravings on decanters and glasses and personalized text gift messages to accompany purchases. It will also allow shoppers clients to locate bars, hotels, restaurants and certified retailers of the cognac. A personal collection space itemizes the customer’s purchase history, making it easy for them to reorder. Louis XIII most valued clients will also have access to a pre-ordering system and direct contact with a Louis XIII private director.

Louis XIII follows Macallan Scotch into the upscale beverage alcohol DTC space. Joining them will be Billionaire’s Row Premier Cru Brut Rosé and Billionaires Row Cuvée XO Cognac and so will Bushmills. Its new 28-Year-Old Single Malt Cognac Cask will be available only on Flaviar.com. The brand has produced less than 500 bottles, which will sell for $500. Customers are also invited to join the selection process for next year’s release in “The Rare Casks” series, with a never-before-tasted single malt whiskey collection available for members on Flaviar.com.

Direct-to-consumer alcohol sales has increased by as much as 27 percent during the pandemic, according to market data from Nielsen.

“Selling directly to consumers enables retailers to get closer to their end customers. Give the sophistication of today’s buyers, brands are taking a tailored approach to sales,” Rupert Cross, chief digital officer at 5874 Commerce, tells PYMNTS. “As a result, products are getting to market much quicker with higher quality and at more competitive prices. Selling directly to the consumer cuts out the middleman and gives brands more clarity. But wholesale is by no means going away. Retailers today are just making better decisions on how to segment which products are sold DTC or via a wholesale channel. Ultimately, helping the customer build a stronger relationship with the brand in all its avenues.”