(TheNewswire)
“Smithville Premium Texas Whiskey will be offered DTC Only."
Waterloo, Ontario – TheNewswire - March 20, 2023 - SponsorsOne Brands Inc., (CSE:SPO) (Frankfurt:5SO), (OTC:SPONF), a company that utilizes its proprietary platform to combine both Direct-to-Consumer ("DTC") digital marketing with Direct-to-Consumer ("DTC") eCommerce and provides an operational update on the strategic plan and forward direction of the Company.
Dedicated Focus on Direct-to-Consumer
The Company will focus exclusively on the DTC market for the sale of the Smithville Whiskey Brand and Doc Wylder's.
In 2021, SponsorsOne Inc. announced and launched Doc Wylder's DTC site, and acheived success. The Company is now working on the Smithville e-commerce site for launch and has recently moved the Smithville finished goods inventory from Redlands, CA warehouse to the new warehouse in San Diego (close to Speakeasy Company), which holds the DTC license to 31 states.
Currently, in finished goods inventory is Smithville Texas 4-Year Four Grain Straight Bourbon Whiskey, Texas Smithville Texas 4-Year Straight Bourbon Whiskey, and Smithville 4-Year Straight Rye Whiskey for an approximate total of 52,000 bottles. All of these products will be available online when the Smithville Store launches. The value for sale to our DTC seller is $2.6 million. We expect to offer a discount coupon for the launch reducing the total sale dollar amount.
During the pandemic, inventory for Whiskey became a global problem as demand increased significantly. The supply chain did not account for the increased demand, and the situation has not rectified.
Ward III states: "The most recent impact of the Coronavirus pandemic on bourbon is a shortage of the alcoholic beverage. With the virus, distillers closed their doors and raised product prices. Furthermore, a scarcity of bourbon has arisen because of high demand. Due to the time the spirit takes to mature; there is a shortage of whisky. As a result, it is difficult to find the spirit in-store liquor stores.” https://ward3.com/the-bourbon-shortage-whos-to-blame/#:~:text=The%20most%20recent%20impact%20of,a%20result%20of%20high%20demand.
BevAlc Insights states that Bourbon sales follow a broader trend across multiple liquor subcategories: premiumization. "Premiumization is a key factor driving the bourbon category," says Rand. "Value growth is outpacing volume growth which indicates a higher spending trend. " https://bevalcinsights.com/bevalc-insights-2023-bourbon-forecast/
The Company is currently working on Doc Wylder's 2.0 for launch this year and will only be available online, supporting the DTC approach of the Company.
"Our focus on the DTC market will allow the Company to manage better the capital requirements to scale, focused on frequent small batch runs and smaller inventory levels," stated Myles Bartholomew, CEO of SponsorsOne. "While we succeeded in the wholesale/retail markets, the capital requirements to successfully scale exceeded our capabilities. Our focus is to build the Brand digitally in the DTC market, then explore the traditional distribution and national retailing. The DTC only approach aligns with the core capabilities of the Company".
The Smithville e-commerce site is currently under construction, and once ready to accept online orders, the Company will notify the market.
About SponsorsOne Brands Inc.
SponsorsOne is the leader in the next evolution of brand creation and digital marketing through influencer marketing, storytelling, and digital commerce with the SponsorCoin platform and its highly scalable – smart contract-based digital currency. SponsorCoin allows brands to build and manage exclusive and highly engaged communities of salespeople and marketers within the social realm. The SponsorCoin platform provides data-driven marketing campaigns that will change how brands connect with their customers. SponsorCoin is a tool for brands to inspire real movements around their products and services. Their most valuable customers become their best salespeople, producing far higher ROI than current social media advertising methods. SponsorsOne's wholly-owned subsidiary S1 Brands Inc., builds wholesale/retail distribution channels for our internal Brands, acting as a master distributor. S1 Brands provides sales and marketing on behalf of the Brand to its vast network of national wholesalers and retailers and provides purchase order financing to assist the Brand in fulfilling every order. Premier Beverage Consortium Inc. is a wholly-owned subsidiary and is brand-building for the global spirits market with its flagship "Ready to Drink" product called Doc Wylder's. HS Brands Inc. is a wholly-owned subsidiary and is brand-building for the global Hemp Smokes market by launching multiple premium products such as Primero Hemp Smokes and Suede Hemp Smokes. Ownership of the Brand, distribution, digital marketing innovation, and capital is the winning formula for building the next billion-dollar Brand. To learn more, please visit www.sponsorsone.com
Contact: info@sponsorsone.com
Phone: 1-833-SPONSR1 (776-6771) or local: 1-289-846-3703
ON BEHALF OF THE BOARD
Gary Bartholomew, Executive Chairman
The Canadian Securities Exchange ("CSE") has neither approved nor disapproved the contents of this Press Release.
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