Alcohol farm

Australian alcohol brands join the NFT trend

Throughout this year, you may have heard the term non-fungible token, or NFT, used a lot more often.

Essentially, an NFT is a blockchain-based, non-interchangeable and therefore unique, non-fungible unit of data stored on a digital ledger (as explained by Forbes). Being “non-fungible” means that the token is unique and cannot be replaced with anything else.

NFTs can represent any digitizable item and have been used a lot this year in digital art sales.

So how can this be related to alcohol?

NFTs enable the sale of rare and unique alcoholic products on a digital scale. The potential of this has already started to be explored across the world. An example can be found in BlockBar, an NFT platform for wine and spirits. The site offers NFTs directly from luxury liquor brands, which correspond to a physical bottle, and the buyer has the option of exchanging the digital version for the physical version.

As stated on the BlockBar website: “Simply put, consumers own the physical bottle, BlockBar stores it for them, and the digital version serves as proof of authenticity, verification of ownership and the right to have the bottle delivered. physical bottle. “

Penfolds launches NFT

Australian company Penfolds was the first wine brand to launch an NFT with BlockBar, announcing the partnership last month. The brand launched a limited edition NFT linked to a rare Penfolds Magill Cellar 3 keg made from the 2021 vintage, with a single NFT keg to be converted into 300 NFT bottles by the bottling date in October 2022.

In the Penfolds example, the NFT is a digital receipt that verifies the ownership and authenticity of the barrel and subsequently the bottles of wine. The NFT barrel can be resold or transferred through BlockBar, but cannot be redeemed prior to bottling. Bottle NFTs can also be resold or transferred in the same way, or can be redeemed for the physical bottle after the wine is released in October 2023.

Additionally, the owner of the NFT barrel at the time of bottling will receive a personalized souvenir barrel head and the opportunity to participate in a selection of special experiences in October 2022, including private tastings, tours and upgrades. video day.

Penfolds Marketing Director Kristy Keyte said upon launch: “This is our first business selling wine via NFT and cryptocurrency, allowing us to connect and build relationships with new collectors, who buy and trade luxury wine in a whole new and refreshing way. The wine itself, Magill Cellar 3 from the 2021 vintage, is not available for public purchase, making it the ultimate collector’s item.

Dov Falic, CEO of BlockBar, added: “We believe the use case of authentication with blockchain technology is of the utmost importance to the industry – with BlockBar, consumers know they are buying wine. genuine, directly from the brand owner.

Top Shelf International launches Australian NFT Agave

An example of another Australian producer using NFTs in a different way is Top Shelf International (TSI). The company announced this week the launch of an Australian Agave NFT, a unique offering that will allow each owner to join an exclusive program around the TSI Australian Agave project.

Each token will be awarded 10 plants, personally selected by the Chief Project Agronomist at TSI Agave Farm in the Whitsundays. These plants will be cured until they are ready to be distilled for the NFT owner via a micro-batch process, which TSI says will create one of the rarest artisanal spirits in the world.

This micro-batch process will only use the plants from this token allocation and will be specially built next to the main distillery and the farm production facility. Drone technology will keep NFT owners updated on their factories, which they can choose from one of four areas.

TSI CEO Drew Fairchild said this is the next step in the premiumization of global spirits.

“This NFT is unlike anything else currently available in the global spirits industry. To be able to purchase a token, have individual plants nurtured on your behalf, and then receive the ultra-premium spirit of those plants, positions Australian Agave NFT at the forefront of innovation and creation, ”said Fairchild.

“Only the owner’s personal agave plants will be used in their bespoke distillation, meaning each batch will never be reproduced. It is the ultimate expression of personalization and represents the first step in our ambition to forge a new frontier for agave spirits on a global scale.

“This exclusive experience also offers a rare chance to be part of history and participate in a pioneering agricultural project. We also take advantage of the security of blockchain technology to manage contracts digitally and provide potential liquidity to token holders. “

TVN and the future

It’s been a big year for NFTs visibility around the world, and while they can be complex and difficult to understand, this growing visibility is helping consumers better understand the benefits.

But that doesn’t mean that NFTs will replace more traditional means of selling luxury liquor, such as auction houses, specialty retailers, and the glittering protective boxes that house the rarer goods in some stores.

Nonetheless, this is an interesting development in the way consumers engage with the most premium products and shows the value of verifiable authenticity.

NFTs aren’t the only way to use blockchain in the liquor industry, either. Thomas Green, Head of Growth at Intelcrypt, discusses this more at the Bloody Big Drinks Summit, which you can explore right now.