Direct to consumer and various e-commerce platforms are on the rise, but that doesn’t mean brands should be abandoning retail strategies.  The two can work well together.

In an exclusive interview with Hard Seltzer News, Daniel Rejzner and Clayton Baum of Our Cart weighed in on why retail is still king in the marketplace.  Whether hard seltzer, canned cocktails, hard kombucha, or mixers and non-alcoholics, they noted that off-premise is evolving rapidly.

Rejzner, founder and CEO of Our Cart, spoke from his experience working alongside brands.

“Most of the brands we work with today have some DTC (direct to consumer) activity, but to be honest, for growth, and at the end of the day, it’s all about retail,” said Rejzner.

Our Cart’s new food and beverage tailored solution, called Chop, is intended to drive awareness and trial, specifically at retail locations. Brands can use Chop to implement rebate deals which give customers an incentive to try new products. Our Cart uses receipt capture technology to provide rebates to customers in seconds, but that’s not all the technology provides. 

“We have a tailored solution that’s intended to take any marketing activities that they’re doing, piggyback on that and drive these people in-store to actually purchase the product.”

“There’s a huge byproduct of data and the ability to actually understand who is buying your products,” Rejzner said. “There’s a lot of information in a receipt, and it’s very powerful.”

Digital Purchases Combine with In-Outlet

Don’t totally count out DTC and e-comm, of course. These rising sales methods have been highly successful, especially during the COVID-19 shutdowns which have kept people inside their homes and out of stores, restaurants and bars.

Baum, Head of U.S. Business Development and Sales for the company, didn’t stray from emphasizing the current power of DTC and e-commerce in the marketplace. 

“I was speaking to a brand the other day — non-alcoholic, spirit side — they only have been doing DTC and e-comm, and in less than 10 months — and they launched just before the pandemic — and they have done over 8,500 cases,” said Baum. “They’ve done almost two million dollars in sales in terms of DTC.” 

A post-COVID Boom is Looming

Baum advised brands to think about post-shutdown commerce strategies. As COVID-19 vaccines continue to slowly become available, more people will be able to shop more comfortably in stores and go out to more bars and restaurants as well. 

“When this thing breaks — and it’ll eventually break — there will be a real big resurgence to get out. You hear people talking about the Roaring Twenties are going to restart.”  -Clayton Baum

Baum said, “Brands really need to absolutely be prepared to meet kind of the need in the marketplace…There’s a real strong importance of accessibility, and [brands] should be prepared to do that across the spectrum of [sic] retail, DTC and e-comm.”

The Appeal of DTC Shopping

So, what is so appealing to customers about DTC? To answer this question, we have to take a look at emerging trends in consumer packaged goods on the whole. Rejzner commented on rising opportunities within the changing marketplace.

“Companies realize that they actually need to get to know their consumer on a personal [sic], one-to-one level,” Rejzner said. “It’s not just [sic] about who my target audience is and focus groups.”

DTC is undoubtedly an excellent way for brands to connect personally with their consumers and share their stories and values. It is no wonder we’ve seen its rise in the modern marketplace. Consumers are seeking out brands with personal appeal, as found in a survey by the Video Advertising Bureau. That study found 72% of DTC purchase decisions are made by consumers who say they buy brands which reflect their style.

As Rejzner explained, Chop piggybacks off of brands’ marketing strategies, including online and social media marketing to bring consumers into retail stores. With this — alongside Our Cart’s receipt capture technology — Chop can help take some of the best qualities of DTC and apply them to retail, making retail analytics even more valuable.

“[We are] able to ask the consumers questions about the product to get feedback, reviews and really to create that kind of bidirectional connection,” Rejzner said. “It’s not only about the consumer discovering the brand, but we feel it’s also about the brand discovering the consumer.” 

Stephanie Meade
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