Like most people I receive far too many emails, and this might be because I have two Yahoo accounts, plus a Gmail one. I also have my own work email account, which is strictly for business. Unfortunately, I’m not a person who keeps on top of his inbox, despite the best of intentions, although for professional reasons, my work emails are kept right up to date. The other day, I noticed an email from Beer 52, the long-established beer subscription service, advising me that Flavourly, another beer delivery organisation, had ceased trading after entering into administration earlier in October.
I have used several beer subscription services in the past, but it’s worth taking a closer look at Flavourly, not just because they are in the news at the moment, but because they operated a rather different business model to other beer providers. This involved partnering with selected craft-beer breweries, commissioning one-off “specials” or “collaboration beers”, and then guaranteeing to buy these beers in large volumes. The beers were then offered to Flavourly’s customers as exclusives.
This provided a certain volume for the breweries concerned, alongside the bonus of a firm commitment from Flavourly to take the entire batch. The aim was to boost efficiency, attract investment in new equipment, and negotiate better rates on ingredients with their suppliers.
Therefore, unlike certain other online beer retailers, Flavourly were not a subscription service, and with nothing to sign up to, customers could just order, as and when they pleased. Having said that, the company did tend to pester you with emails, highlighting their latest offers, but with no obligation to buy, you could just delete these messages. The beers that the company sold were packaged solely in the 330ml can format, which must have helped streamline their mail order despatch, business model.This did at least mean that potential subscribers had an inkling of the types and styles of the beers they would be buying - an improvement on the “traditional” beer subscription services, where the provider rather than the customer, chooses the beers supplied. From my point of view, collaboration brews were alright for those wanting to tick beers on “Untappd,” but perhaps not for those who preferred something more permanent rather than “one-offs.”
Flavourly was set up by Ryan O’Rorke in 2012, following an appearance on Dragons’ Den, where he was offered investment by all five dragons. He eventually accepted a joint bid from Piers Linney and Peter Jones for £75,000 in return for a 20% stake. Over the previous two years, Flavourly had generated £600,000 in revenues, had shipped more than 500,000 products to its 10,000 subscribers, and was forecasting a tenfold increase in sales. Flavourly also raised cash through several crowdfunding exercises, but In 2017 it was sold to Drinkshare Holdings for £118,000, a company which Mr O’Rorke was a director of. At the time of the fund-raising Flavourly was touted as having a value of £1.2m, so somewhere along the line the company decreased quite dramatically in value, and investors who backed the original startup were reputedly left out of pocket. I’m not sure how you value a company whose only assets are the stock it is currently sitting on, plus possible warehousing and distribution space. The latter two can be contracted out, so in the end it boils down to the offers that Flavourly had in which to tempt the customer. I’m beginning to think that apart from the possible novelty value, the brands plus types of beer the company were offering, had slowly stated to lose their appeal. This is certainly what happened in my case.At the beginning of March 2022, I ordered myself a
mixed case of 48 cans of “craft beer” from Flavourly. My
motives in buying this rather large case were mixed but were underscored by a
desire to have a selection of different beers at home, to choose from. I’m not
sure whether this actually worked, as some of the beers were, quite frankly,
disappointing. You could argue that with such a large selection to choose from,
there are bound to be a few duds, and you would be right in thinking this. However,
at the other end of the spectrum you might expect there to be a few stunners,
but there wasn’t any, although there was a few worthy of seeking out again.
Whether this could have been foreseen, is a question for another day, but one thing’s for sure, I won’t be taking Beer 52 up on their offer, as eight cans of supposedly “free beer,” just aren’t worth the hassle of cancelling my subscription further down the line.