The Business-to-Business (B2B) Site Aims to Modernize Bulk Whiskey Trading
HOUSTON, TX (May 2024) — After a successful soft launch in 2023, Advanced Spirits is pleased to formally introduce Barrel Hub, the first e-commerce platform for the wholesale bulk whiskey market.
Barrel Hub’s functionality mirrors that of other popular e-commerce platforms. Registered users can search the available inventory through familiar filter and sort features. Email notifications can be set so that users are notified when barrels of interest are listed for sale. Each user has their own specific account portal, where they can log personal information, list inventory for sale, track active trades/bids, and review historical sales/purchases.
“From our soft launch, we know one of the most pressing questions that buyers and sellers have is around purchase price,” said Rob Arnold, Ph.D., President of Advanced Spirits and Barrel Hub. “What is the current value of this whiskey barrel? The lack of transparency in the wholesale bulk whiskey market makes this question hard to answer. Therefore, Barrel Hub has introduced a bid feature, so that buyers and sellers can collectively set fair market values.”
Every barrel entry has a list price set by the seller—the “Buy Now” price. However, buyers can also choose to “Make an Offer” on barrel purchase price and quantity. Sellers can then accept, reject, or counter back to the buyer. This process takes place seamlessly and anonymously on the site.
Transactional safety is also a key initiative of Barrel Hub. Every transaction includes a Barrel Purchase Agreement circulated to buyer and seller by the Barrel Hub legal team. Further, Barrel Hub serves as the clearing house. Buyers only send money to Barrel Hub, and sellers only receive payment from Barrel Hub.
Barrel Hub also recently introduced a barrel verification feature. Sellers can send Barrel Hub a warehouse inventory report (for aged barrels) or supplier distillation forecast (for new fills) for the barrels they have listed. If the specs in the report/forecast match the listings on Barrel Hub, then the entries will receive a green verification check and automatically sort to the top section of the Inventory page.
“While our team vets details for every transaction before payment is sent to sellers, we hope this verification process provides buyers with an even greater sense of safety and assurance in their barrel purchases,” said Arnold.
The team at Barrel Hub also provides many back-office solutions to facilitate transactions, such as transfer-in-bonds, warehouse agreements, ownership transfers, barrel insurance, and barrel transportation.
Beyond efficiency, transparency, and transactional safety, Barrel Hub has a long-term goal to de-commoditize the wholesale bulk whiskey market.
“As a distiller and scientist, I was surprised to realize that barrels on the wholesale market often trade with relatively few details known to the buyer,” said Arnold. “Distiller, mash bill, whiskey type, and barrel fill date—these might be the only specifications known to the buyer. But there are so many other factors that influence flavor, and ultimately the stories we tell our consumers.”
To introduce more flavor-driven data, entries on Barrel Hub include details such as barrel entry proof, cooperage, wood type, warehouse location, and toast/char level. Further, samples can be purchased on the site, so that quality and flavor can be assessed directly by buyers.
About Barrel Hub
Barrel Hub is the first e-commerce platform for the wholesale bulk whiskey market. It is a B2B site whose users are typically distillers, brands, barrel investors, and brokers. The platform serves as the marketplace, clearing house, and back-office support for all transactions. Barrel Hub is a sister company of Advanced Spirits and is managed by the same team. For more information and to register, visit www.barrel-hub.com.
About Advanced Spirits
Advanced Spirits is an innovative industry growth collaborator that specializes in the procurement, financing, and aging of whiskeys for their brand partners. They also have extensive experience in operations, sensory science, and flavor chemistry, which their brand partners can leverage to ensure quality and drive innovation. Advanced Spirits is led by Rob Arnold, Ph.D., former Master Distiller for Firestone & Robertson Distilling Co. For more information visit www.advanced-spirits.com.
