White Claw is a category-defining alcoholic drink distributed around the globe. As the original Hard Seltzer, it dominates over 60% of the category with estimated sales of $4 Billion in 2020.
Over the last 3 years we have seen a dramatic shift in the way in which brands and consumers transact. No longer does a middle-man sit in between the consumer and brand – instead, they have a direct relationship.
We believe that this shift represents the future of commerce.
As a hangover from the prohibition era, it is prohibited for US alcohol manufacturers to sell directly to consumers. Instead, they can only supply customers through intermediaries.
This legislation meant that alcohol companies could not leverage the benefits of Direct to Consumer commerce; including more developed relationships, increased data insight and reduced marketing costs.
Our challenge was to design a solution to this problem that unlocked the benefits of Direct to Consumer commerce for White Claw.
We identiﬁed that we had seen this sort of problem before: a homogenous product, geographically limited and available from many vendors. It was the aviation industry.
The solution to the problem in the aviation market is ﬂight aggregators such as Kayak and Skyscanner. Through such aggregators, a consumer can ﬁnd the various ways to purchase a single product. In Kayak’s case, it’s ﬂights. For us, it’s White Claw.
In order to power the product locator, we engineered the alcohol industry’s ﬁrst aggregator API. The API interrogates all of the US’s top retailers to ﬁnd live pricing and availability data of White Claw products.
We married this API with a user-focused front-end application designed for both mobile and desktop usage. Together, the system represents a major technological competitive advantage for White Claw in a highly competitive market.
The locator launched in March 2020 – exactly when the Covid pandemic meant that alcohol delivery wasn’t just one way to get alcohol, it was the way.
Within weeks of launching the locator product, White Claw has seen a shift of 45% of consumers choosing online delivery through the locator vs in-store purchases and a 51% conversion rate. In April 2020 alone, online sales of alcohol in the USA increased fivefold. Through our product locator, White Claw was able to be right at the forefront of this shift in behaviour.
The product locator unlocked a number of beneﬁts for White Claw associated with Direct to Consumer commerce:
"From evergreen strategy to pragmatic innovation, Neu has been an integral part in developing a first-to-market commerce solution for our business. The team’s agility and well-rounded expertise has allowed us to understand a completely new user behavior within a highly regulated industry. Post launch, Neu continues to provide solutions, guidance and best-in-class consultancy."