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CAZENOVIA – Cazenovia resident Chad Meigs recently announced the upcoming launch of Third Space Distribution LLC dba Drink NY Craft (DNYC), a craft beer distribution startup specializing in direct-to-consumer sales in New State. York.
The goals of the e-commerce marketplace are to provide every beer-drinking New Yorker with the opportunity to have the state’s rarest beers delivered right to their doorstep and to expand the reach of local breweries in the hope. to make the leap into the commercial field.
Meigs, who is the chairman of the company, runs The Bineyard (thebineyard.com), a commercial hop farm in Cazenovia, for 11 years.
“I am responding to many of my complaints from brewery customers about the operation of the three-level distribution system for one level, the distributor,” Meigs said.
According to the National Alcohol Beverage Control Association, the three-tier system of alcohol distribution was developed in the United States after the ban was repealed. The basic structure of the system is that manufacturers (level 1) supply alcohol products to wholesalers (level 2), who distribute the products to retailers (level 3), who sell to consumers. No entity can be involved at more than one level in most state models and each level is regulated and licensed separately.
“We are launching DNYC to disrupt ‘traditional’ distribution and empower the producer and the consumer,” Meigs said. “Work has been going on for about two years, but the seeds have been planted during my 11-year relationship with my current hop brewery customers.”
Scheduled for launch in October 2021, DNYC’s online platform will offer beer lovers access to a wide selection of craft beers, whether they choose to join “The Club” or purchase beers at the. unity.
The Club is a subscription that includes a personalized case of craft beer delivered to members each month.
Individual beers can be purchased from an online store that offers a 360-degree shopping experience and descriptions detailing the aroma, appearance, mouth feel, body, and packaging of each brew.
“Our main customer is the beer connoisseur whose ‘favorite beer is the one he hasn’t tried yet’,” said Meigs. You no longer need to go to the brewery to get this beer; you will be able to get it through our platform and have it delivered to your doorstep via a common carrier. Again, these are the breweries that you won’t find it at Wegman’s or your local convenience store.
By enabling direct sales to consumers, DNYC aims to help New York’s nano-breweries transform into microbreweries or regional breweries.
Meigs defined a nano-brewery as an operation with a production capacity of three barrels or less (per batch). Meanwhile, a microbrewery produces less than 15,000 barrels per year and a regional brewery produces between 15,000 and 6 million barrels per year.
“The ‘traditional’ distribution is set up to reward the biggest regional breweries,” Meigs said. “It’s a volume game; the more you produce, the more marketable you are. We are looking to reverse that. We want to help the little guy grow and grow. We know the market is there, we just need to make it known to the masses, and what could be better than e-commerce in a post-COVID economy? The timing is now perfect.
Meigs also pointed out the disparity between the number of small breweries and the number of large regional breweries across the state.
“New York State has about 480 breweries; most of them are nano or micro and a handful are regional – think Saranac, Ithaca, etc. “, did he declare. “Most of these little guys started out as home brewers and professionalized with little to no business experience. To go from an amateur brewery to a production brewery, you need capital and expertise. We hope to provide assistance to breweries looking to make this leap. “
According to a September 15 company press release, DNYC plans to empower “little ones” to scale by offering an offsite sales channel, giving them the ability to market throughout NY, aggregating multiple brands on an electronic commerce platform, and allowing them to increase their overall visibility.
“Creating this win-win situation will put DNYC in favor of the breweries and lead to two parties wanting to work together,” Meigs said in the press release. “We aim to be the biggest customer of these breweries by allowing them to expand into the off-site sales market. “
DNYC will also have a support center / warehouse at the CNY regional market in Syracuse to assist breweries in various areas, such as distribution, sales, ingredient purchasing, packaging and storage, as they arise. and as they grow.
Breweries wishing to learn more about DNYC should send an email [email protected]
Customers can benefit from a 10% discount on their first purchase before the market launch by registering with DNYC on drinknycraft.com.
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