While it may seem like actor Tom Holland is busy planning his wedding to co-star and fiancée Zendaya, he has actually been quietly scaling up distribution of his premium non-alcoholic beer brand Bero.
A few weeks back, the DTC brand started selling on Amazon, three months after launch. Bero’s VP of Digital and E-Commerce Cécile Peters told Retail Brew that talks with Amazon began more than six months back when the e-commerce giant invited Bero to start selling on its invite-only wholesale platform Vendor Central.
At a high level, Bero’s launch on Amazon comes after a gold rush of a few years for DTC brands looking to sell on Amazon. That’s partly because they needed to expand third-party distribution channels as venture capital funding has dried up.
According to Andrew Lipsman, independent analyst at Media, Ads + Commerce, Amazon represents “a possible lifeline” to continue driving sales growth.
“There’s always a tradeoff between margin and sales volume, so DTC brands that opt for selling on Amazon go in eyes wide open,” Lipsman wrote in an email to Retail Brew. “But Amazon could be great for growing the brand, especially because that’s where people search for niche products that satisfy specific customer needs—in this case, non-alcoholic beer.”
Why Amazon? Despite the clutter, Peters said Amazon was a “good fit” for Bero, which sells in almost 3,000 stores nationwide, because of its dominance in selling groceries online, its stronghold in logistics with FBA (Fulfilled By Amazon), and its lucrative set of Prime members.
“It’s like the biggest discoverability platform when it comes to grocery items,” Peters said. “I think 54% of consumer searches for product are on the Amazon platform, not on Google.”
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“Beverage is a hard product to ship, and if you think about Amazon and their distribution network, their logistical power, it makes a lot of sense,” she added.
Peters said Bero and Amazon are tackling the non-alcoholic beverage market and recognizing the growth in this segment, which is “a first for Amazon.”
Peters noted that access to Amazon's affluent base of more than 200 million Prime members aligns with Bero’s positioning as a premium brand: “And Prime membership, it just made a lot of sense to be able to offer free shipping to consumers, and that’s what we have on Amazon.”
“We are a premium brand, so we’re not overly focused on discounting, but we’re focused on building loyalty and consumer loyalty,” Peters said.
Overall, Peters said instant delivery is going to be a key focus area for Bero, which is why it is also selling on grocery delivery platform Instacart.
Working with Spiderman Holland: For Holland, Peters said, Bero is personal. He founded Bero drawing inspiration from his personal desire for a high-quality, flavorful alternative for those seeking to reduce alcohol consumption or maintain sobriety.
As the founder of Bero, Holland doesn’t seem to sweat the small stuff, Peters shared. She said the most important aspect of Bero’s journey for Holland is how customers are receiving it.
“He wants to know, ‘High-level, how is the brand tracking?’” she said. “But what is more important to him is, ‘What is the consumer feedback like? How are consumers liking this?’ He is in this to build a brand for the long term.”