Craft spirit subscription service Liquor Loot has called in the administrators, as consumers tighten their discretionary spending and government excises make high-end spirits increasingly expensive.
Liquor Loot, formerly Whisky Loot, allows drinkers to sample top-shelf spirits through subscription boxes, tasking packs, and booze-filled advent calendars over the festive season.
Founded in 2016 by Sydney entrepreneur Joel Hauer, Liquor Loot provided a new option to discerning drinkers who wanted to try new spirits without shelling out for a full-sized bottle.
After bootstrapping for its first two years, Liquorloot acquired $400,000 in seed funding in January 2020, just before the COVID-19 pandemic shuttered pubs and bars and changed the way many Australians drink.
Its total sales crossed the $10 million threshold in August 2022, and Liquor Loot launched an equity crowdfunding campaign in September 2022, seeking as much as $3 million to power its potential expansion into the Hong Kong and Singapore markets.
The brand celebrated $1 million in sales over November 2022 alone, with Hauer calling it the “culmination of years of hustle” from the growing Liquor Loot team.
But trading conditions appear to have turned over 2023, as rising interest rates force consumers, and investors, to be more conservative with their expenditure.
The Australian Securities and Investments Commission (ASIC) website states Liquor Loot Pty Ltd and two related entities this week secured the services of Jirsch Sutherland’s Andrew Spring and Trent Devine as joint administrators.
An early assessment of the business suggests it was struggling with cashflow at the time of its administration, Spring told SmartCompany on Thursday.
While it boasted seven-figure sales over its life, the business was still in startup mode and leaned on investor support.
Broader trends in the brewing, distilling, and alcohol retail sectors have rocked businesses in the past 18 months, too, including the increase in alcohol excises placed on producers and the soaring cost of delivery.
Online alcohol retailer BoozeBud tapped its own administrators in May last year, followed by the digital gin retailer Gintonica, which collapsed in June.
But the core Liquor Loot business seems strong, said Spring, who currently intends to trade the business through the administration process.
At the time of writing, the Liquor Loot website remains online, and shoppers are able to access its tasting packs, subscription services, and full bottles.
In their short involvement with the business, the administrators have not laid off staff.
Spring voiced his optimism for the future of Liquor Loot, saying he’d be “surprised” if another party did not find value in the business.
SmartCompany has contacted Hauer for comment.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
