Business-to-business (B2B) site aims to modernize bulk whiskey trade
Houston, Texas (May 2024) — After a successful soft launch in 2023, Advanced Spirits is excited to officially introduce Barrel Hub, the first e-commerce platform for the wholesale bulk whiskey market.
Barrel Hub's functionality is similar to that of other popular e-commerce platforms. Registered users can search available inventory using familiar filtering and sorting features. Email notifications can be set up so users are notified when a barrel they're interested in is listed for sale. Each user has their own account portal where they can record personal information, list their inventory for sale, track active transactions and bids, and review their sales and purchase history.
“We know from our soft launch that one of the most burning questions buyers and sellers have is around purchase price,” said Dr. Rob Arnold, president of Advanced Spirits and Barrel Hub. “What is this barrel of whiskey worth today? The lack of transparency in the wholesale bulk whiskey market makes this question difficult to answer, which is why Barrel Hub has introduced a bidding feature to enable buyers and sellers to work together to set a fair market price.”
Every barrel entry has a fixed price (the “Buy It Now” price) set by the seller. However, buyers can also make “offers” on the purchase price and quantity of the barrels. The seller can accept, reject or respond to the buyer. This process happens seamlessly and anonymously on the site.
Security of transactions is also a key commitment of Barrel Hub. Every transaction includes a barrel purchase agreement that is distributed to buyers and sellers by Barrel Hub’s legal team. Additionally, Barrel Hub acts as a clearing house: buyers simply send money to Barrel Hub, and sellers simply receive payment from Barrel Hub.
Barrel Hub has also recently introduced a keg validation feature. Sellers can submit to Barrel Hub a warehouse inventory report (for older barrels) or a supplier's distillation forecast (for new fills) for the barrels they list. If the specifications in the report/forecast match what's listed in Barrel Hub, the entry will receive a green validation check and will automatically be categorized into the top section of the inventory page.
“Our team scrutinizes the details of every transaction before payment is sent to the seller, and we hope this verification process gives buyers an even greater sense of safety and peace of mind in their keg purchases,” Arnold said.
The Barrel Hub team also offers a number of back-office solutions to facilitate transactions, including assignment guarantees, warehouse agreements, ownership transfers, barrel insurance and barrel transportation.
Beyond efficiency, transparency and security of transactions, Barrel Hub’s long-term goal is to de-commoditize the wholesale bulk whiskey market.
“As a distiller and scientist, I was surprised at how little detail about barrels is communicated to buyers in the wholesale market,” Arnold says. “The distiller, mash bill, type of whiskey, and barreling date may be the only specifications shared with a buyer, but there are many other factors that influence flavor and ultimately the story we tell our consumers.”
To introduce more flavor-focused data, Barrel Hub entries include details such as the barrel's cooperage proof, cooperage, wood type, warehouse location, toast/char level, etc. Additionally, samples are available for purchase on the site, allowing buyers to assess quality and flavor first-hand.
About Barrel Hub
Barrel Hub is the first e-commerce platform for the wholesale bulk whiskey market. It is a B2B site and users are primarily distillers, brands, cask investors and brokers. The platform acts as a 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 sign up, please visit www.barrel-hub.com.
About Advanced Spirits
Advanced Spirits is an innovative industry growth collaborative specializing in sourcing, financing and maturing whiskey for brand partners and bringing extensive experience in operations, sensory science and flavor chemistry to help brand partners ensure quality and drive innovation. Advanced Spirits is led by Dr. Rob Arnold, former Master Distiller at Firestone & Robertson Distilling Co. For more information, please visit www.advanced-spirits.com.
