Strong demand from UK stockholders has led to global marketplace Spiritrade developing a dedicated London hub
In the past 18 months Spiritrade has received an influx of demand from UK stockholders looking to continue trading safely and efficiently.
To help brand owners, Spiritrade applied for the AWRS and WOWGR licences to be able to assist the trade and work with all buyers and sellers in the drinks industry.
The company was awarded these licences in early December, and is founding a UK hub in London to meet demand. “Our goal is to assist brand owners in solving many of the challenges they are facing, particularly around stock, credit concerns and distribution,” says company CEO Jimmy Metta.
“It is no secret that e-commerce is now at the forefront for most industries, but there is a real lack of technology in the drinks industry, particularly on a business-to-business level. The brand owners we work with are now pivoting and changing their ways of working by using Spiritrade to enable them to trade more securely,” he added.
The pandemic has created challenges in the UK, particularly with large wholesalers experiencing drastic declines in demand. Supply-chain issues, inflation, Brexit and lack of on-trade business have all caused issues for stockholders.
In particular, big hospitality groups have been affected by these challenges, especially during the Christmas period. Spiritrade’s new London hub will provide them with a channel to buy and sell in the UK, alleviating many supply chain problems.
“Now more than ever is there a massive need for a platform that can assist businesses and ensure their survival. The drinks market is in turmoil, and mainstream revenue channels have been hugely compromised by the pandemic. Drinks businesses have had to adapt accordingly.”
The launch of Spiritrade’s UK hub has come at a much needed time for the country’s traders; drinks companies either have too much stock, which is deeply affecting their cash flows and leading to suppliers not being paid on time, or there is a major shortage of core products to be able to generate a profit.
“For the past 12 months, we have been approached by leading brand owners, retail and supermarket groups to assist them in selling their overstocks, but it’s been fascinating to discover that many require a helping hand on the buying.
“Our marketplace model connects buyers and sellers, ensuring that businesses which are struggling to find stock will now have access to a new pool of suppliers, some of which have fantastic parcels and prices.”
Spiritrade has partnered with London City Bond, and buyers and sellers will be connected through a dedicated exchange enabling them to negotiate and trade through the click of a button.
For the first time, Spiritrade will be able to accept duty paid products when using London City Bond as a delivery hub. The new platform will be rolled out in the coming months, making trade even faster and easier.