Alcohol Subscription Services, Are They Worth it?

Possibly the most influential factor of subscription services that aides in the success of the industry is variety. Depending on the market and the consumer base one is looking to penetrate, there is a lot of room for unique offerings. And with a society that adores subscriptions, an alcohol subscription service is a no-brainer. With a monthly alcohol subscription, connoisseurs can sip, enjoy, and explore all different types of adult drinks from the safety of their own home.

The Target Audience

The great prospect of booze-geared subscription boxes is there is a wide breadth of potential consumers. Naturally, the first criterion is ensuring 21+ age requirements are being enforced, but beyond this, the market is your oyster.

Depending on the type of service your organization provides, there are many niches that can be filled to success. For the burly man (or woman!) there are whiskey subscriptions that introduce subscribers to new and rare varieties. Wine drinkers have the opportunity to sip and sample new wines, establishing their new favorites. And for the adventurous types that love to learn new recipes, cocktail subscriptions provide step-by-step instructions on how to craft new drinks!

From millennials to baby-boomers, alcohol speaks to a wide range of consumers. Whether the purpose of the monthly subscription service is to enjoy a little wine or learn a new skill, most alcohol connoisseurs will find the joy in what these services have to offer. For this reason, the target audience for these services expands to all who enjoy a glass.

Alcohol Subscription Offerings

alcohol cocktail mixing kit

While you may have a completely original idea in your head for what you want your service to look like, there are plenty of example of existing products to consider. Additionally, evaluating the current market will also help you to understand what business work and those that are struggling. 

Full Offerings

There are many shapes and forms these services come in, specifically when it comes to what type of alcohol is being delivered. These services provide full-sized bottles of beer, wine, and liquor with a recurring subscription. Wine lovers tend to enjoy this type of subscription because they are able to try a variety of wines a month without ever having to peruse a grocery store aisle.

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Finding all of the ingredients for a cocktail can be complicated and time-consuming. Perhaps the most immersive subscription offering in this market, cocktail kits transform the ordinary subscriber into a mixologist. There are a few variations of these services, including kits that provide sample sizes of the liquor or everything but. This is a fun way for subscribers to learn about new drinks as well as gain some bartending techniques! Some kits are even geared toward parties or a quiet date night in.

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For the drink connoisseur who would rather sample a bottle before fully committing, sample services are perfect! The monthly subscriber will receive small quantities of various alcohols depending on the subscribers’ preference. Similar to the full-size bottle services, consumers enjoy the ability to sample certain beverages they might not have picked up for themselves, opening them up to new varieties. There is an opportunity here for promotions and potential partnerships for consumers who want to buy the full version of their sample.

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Bar Accessories

Whether the subscriber is new to mixing cocktails or simply looking to expand their bar accessories, these services fill many needs. While it’s exciting to receive cocktail kits, it may be a downer if the subscriber has a limited arsenal of drink accessories. These monthly subscriptions deliver a variety of barware and accessories to consumers to add to their collection.

wine subscription box

Why Recurring Subscriptions Work

Subscription services work for a number of valid reasons. Having a service that delivers products straight to the consumer’s front door fills a lot of needs. The exploratory aspect alone is a major draw for subscribers. Having the opportunity to consistently try new offerings is a win for both consumer and provider.

Beyond the general success of the market, monthly alcohol subscription boxes also have their own set of reasons why these services work so efficiently. Although alcohol can be a risky market, new and exciting ways to consume booze is on the rise, most likely due to Millennials’ influence on the industry. 

Securing Recurring Revenue

Finding credit card processing is a major hurdle for businesses who are ready to begin accepting payment from customers. Recurring revenue is a market that tends to have a lot of risk associated with it. From high chargeback rates to negative option billing, recurring revenue businesses are labeled as a high risk market.

Another challenge that alcohol subscription merchant services face is the legal complications that accompany the sale of alcohol. Due to the differing restrictions in the States, the sale of alcohol can be tricky. Knowing the legislation for the areas your business services will keep you from being shut down or in any legal issues. For most services that are linked to alcohol, there will be a mandatory ID check for carriers to enforce.

Once you’ve double-checked the legality of your services, it’s time to find merchant services that can handle your business. There are providers who specialize in securing merchant accounts for businesses that find themselves being denied by other merchant services companies. Just because you may have questionable credit or are in a risky market does not mean your business’ high risk credit card processing should suffer. Payment processing for your monthly alcohol subscription service is still a viable option for you.

PaymentCloud Author Allison Eilhardt

Allison Eilhardt

Allison is a writer based in Los Angeles, CA. She has been writing professionally for over five years, covering topics ranging from charities and social events to intricate finance spotlights. Allison is currently the Director of Content at PaymentCloud, a merchant services provider that offers hard-to-place solutions for business owners across the nation.