What is DTC / D2C?

What is DTC / D2C?
Photo by Samuel Regan-Asante / Unsplash

DTC or Direct to consumers is the possibility to buy drinks directly from the producer.

Let's call it a channel, although I don't like to see it that way. I see it as the digital enablement of direct sales.

It has shined in 2020 accounting for as much as 39% of US craft distillers sales (where it was allowed) after they saw their revenue halving due to closed tasting rooms.

Adult beverages e-commerce has had a 10 years growth in 3 months in 2021, according to McKinsey.

Where allowed, it has acted as a saviour but different markets have approached the matter in various ways.

Legislation is not yet up to speed in most markets as it has only been amended with temporary measures.

In markets such as the US with their (in)famous 3 tier system, it just looks like the brand is selling directly but in reality, it goes through the 3 tiers but the end consumer does not notice it.

It will be interesting to see the development on RTM for brands.

The biggest risk I see is how companies will jump on the e-commerce wagon without doing their homework first.

Those who will not be careful, will carry their offline baggage with them just like they did when they thought that social media was a free new medium to exploit.

Unclear offline, unclear online.