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In focus: How Spiritrade is dealing with supply vs demand dynamics
As lockdown is loosened in the UK, there are growing concerns around the supply of stock for UK stockholders. As such, Spiritrade has been actively working to increase its visibility to ensure buyers are able to meet increasing demands. drinks industry starts to reopen, the industry now faces a new challenge – supply.
As the drinks industry starts to reopen, the industry now faces a new challenge – supply.
When the pandemic hit, brand owners were forced to pivot away from the on-trade and focus on the off-trade, to meet targets and drive revenue. This meant that the production of on-trade products either ceased or was significantly cut.
However, as the on-trade starts to reopen globally, brand owners are now met with the challenge of meeting consumer demand for drinks, as the movement of the raw materials is being hindered by travel restrictions, closed borders and countrywide lockdowns.
To help reduce the impact that these challenges will have on the UK drinks market, Spiritrade has opened a new hub in the United Kingdom to enable its members in the UK to gain access to its extensive network of buyers, as brand owners struggle to meet the growing demand.
Jimmy Metta, founder and CEO of Spiritrade, says: “Our additional hub in the UK comes as a direct result of the strong demand we are receiving from the wholesalers, brand owners and retail groups. We are very happy to be associated with such a reputable warehouse partner such as London City Bond, which is very much best in class for storage and distribution.”
Metta adds: “Our customers in the UK will now be able to trade surplus or short-shelf-life stock through a push a button, ensuring inventory is managed efficiently without having the burden of tying up capital on dead stock. Our platform will serve as an additional revenue stream to their businesses, ensuring more profits and efficient stock management.
“Our members will be able to use our platform as a buying tool, ensuring all purchases are made at the fair market price with full peace of mind around authenticity and safety.”
Ewan Wright, brand owner relations, adds: “During the current climate, brand owners are struggling to sell through their usual distribution channels, and have to look for new alternatives for selling excess stock, to gain revenue and growth. Opening LCB to our UK brand owners is the next step in providing a solution in the current climate.”
In the coming months Spiritrade will continue to grow its visibility in the UK to help support small and large brands to access new revenue streams.