Why are alcohol brands entering the NFT space?

NFT offerings are thriving in the alcohol industry An emerging concept is the tokenization of physical bottles, paving the way for verifiable authenticity and rewards earned through NFT ownership.

Certificate of Authenticity

As with all rare and fine goods, NFTs help fight counterfeiting in the luxury wine and spirits industry. When an NFT is attached to each bottle, real-time tracking and proof of authenticity is possible.

Alcohol brands looking to prove the authenticity and origin of their products can work with blockchain certification solutions like Vault. Marketplaces also offer minting services.

A new approach to fine wine investing

A pioneer in this field is Blockbar, an NFT marketplace for fine wines and spirits that connects consumers directly with alcohol companies. Blockbar has so far partnered with high-end brands such as Glenfiddich, Karuizawa, OFC and Remy Martin. These brands reserve limited editions for Blockbar, which mints them as NFTs and publishes NFT bottle collections on its platform.

Blockbar enables a whole new way of investing in wine and whiskey. Bottle releases can occur via auction, on a first-come, first-served basis, or through a random drawing. Moreover, owners can redeem their NFTs for genuine bottles and have them delivered to their addresses. Until redeemed, Blockbar secures the bottles in its warehouses in Singapore. Collectors can trade NFTs in the market instead of redeeming them

Ownership also offers additional benefits, such as private distillery tours, exclusive content, special discounts and exclusive future NFT drops.

Age your bottle first, then redeem

Like Blockchain, most beverage-related NFT projects offer owners the option to redeem NFTs for physical bottles. Depending on the project, redemption can be immediate or later, allowing the owner to entrust the storage of the wine bottle to a safe place and benefit from possible price appreciation during that time.

For example, trefthan, A family-owned winery from Napa Valley, offered nine bottles of their 2018 award-winning Cabernet Sauvignon as NFTs. The winery will store bottles of wine in its inventory for up to 10 years on behalf of NFT owners in certain countries.

Not just bottles

Beverage-related NFT applications are not limited to tokenizing physical bottles, however. Using smart contracts, alcohol companies can create a variety of creative experiences for their customers.

As an important element of popular culture, NFT is the gateway to connect with the younger generation. Some brands have NFT offerings, but they are not associated with physical beverages; Instead, they essentially capitalize on web3 culture.

For example, every NFT offered by Victoria-based cocktail bar Clive includes a recipe as unlockable content and access to digital experiences, special tastings and AMA sessions with the bar’s world-renowned bartenders.

Another project worth mentioning is NFT Wine Club which is creating an exclusive wine club in the Metaverse.

World-renowned lager producer Budweiser is creating its own Metaverse Budweiser where NFTs offer special benefits. For example, each Budverse Cans Heritage NFT serves as an entry key to the Metaverse and unlocks exclusive rewards.

Everything on the blockchain is poised for additional financial leverage

NFTs can be a powerful financial tool for wineries. Just as artists receive ongoing royalties from each secondary market NFT sale, the winery that issued the bottles can continue to earn royalties from each trade if they are encoded in the smart contract. In the case of Blockbar, For example10% of the royalties are split between the marketplace and the winery.

And some ventures carry DeFi opportunities into the world of Vine. For example, WiV works to improve the wine trading market by incorporating blockchain technology. The company is building a decentralized wine fund that will lower barriers to wine investment. Additionally, NFT owners can yield and use their wine collections as collateral to take out defi loans.

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