The pandemic altered the way we do business. It affected every industry, including the alcohol industry. Stay-at-home ord...
TapRm's previous Seed round campaign on Republic was successfully funded by 2,300+ investors. The Company is now back on the platform, offering exclusive allocation for Deal Room investors before their Pre-Series A Round.
Problem
Brands Cannot Legally Sell Beer From Their Own Website
Despite being one of the oldest industries, beer has been one of the slowest to modernize, maintaining a stacked and siloed supply chain. Even today, prohibition-era laws ingrained deeply in the industry's infrastructure generally prevent breweries from selling directly to consumers at home.
The emergence of online marketplaces (like Drizly) ended up solving fewer problems than they would go on to create.
Today, brands selling online go through a process that is slow, disconnected from their consumers and data, and unreliable for their customers. Ultimately, beer brands are still far from being able to engage and build loyalty with their customers online.
Solution
'Powered by TapRm' ™
An End-to-End Platform Empowering Alcohol Brands To Sell Directly From Their Own Websites
'Powered By TapRm' ™ is an enterprise SaaS platform that transforms alcohol websites into a thoroughly modern e-commerce experience for brands. 'Powered By TapRm' ™ allows brands to legally and efficiently sell their products online, freeing them to build demand and reach their customers more efficiently, effectively, and more directly than ever before without reliance on the industry’s institutional gatekeepers.
Product
The Premier E-commerce Solution for Alcohol Brands
TapRm’s 'Powered By' ™ software brings alcohol e-commerce into the modern era by integrating directly into a brand’s website, adding the capability of actually selling their beer from their existing site.
Brands retain all their first-party customer analytics, allowing them to understand their consumer and build a cohesive digital marketing strategy.
'Powered By TapRm' ™ handles all regulatory requirements, while providing best-in-class customer service, and an average of over 98% fulfillment accuracy across its fulfillment network.
TapRm's proprietary software and tech stack is enterprise-grade, boasting dozens of integrations, and a public API for clientele requiring a more tailored solution.
Traction
Explosive Growth since Platform Launch
New Brand Contracts Are Being Signed at a 28% rate MOM
Since launching their 'Powered By TapRm' ™ solution in October 2021, TapRm has signed over 141 brand contracts, with more and more brands signing on to the platform each month as TapRm extends their reach.
TapRm has grown its available brand prospects from 823 to 3,717, projecting another 30,000+ prospects by the end of the year.
They have expanded from 3 to 20 cities nationwide, with TapRm Fulfillment centers in each, all using their platform to fulfill orders for same-day delivery.
Customers
Trusted By Hundreds of Alcohol Brands
'Powered By TapRm' ™ provides all of their brand customers with unparalleled analytics and insights into their consumers, allowing them to focus on what really matters: making great alcohol products and growing their business.
Here's some feedback from several of TapRm's 'Powered By' ™ brand customers about their experiences using the platform:
TapRm's brand customers aren't the only ones excited -- their consumers are too. The service excellence provided by TapRm's Fullfillment Center Network and Customer Experience team speaks for itself:
Business model
A Subscription Service for Alcohol Brands
'Powered By TapRm' ™ is a SaaS platform: they receive a monthly recurring software fee for the services provided. Smaller brands can sign a $1,000 monthly contract for a limited amount of monthly orders through the platform. For brands looking to scale faster, they can agree to a $2,500 monthly contract to unlock a larger amount of monthly orders.
For larger brands, more tailored packages are available, including the ability to build apps and websites with their Public API, as well as custom packaging, inserts, and marketing campaigns.
Additionally, TapRm takes a percentage-based take-rate of all sales running through the platform ranging from 10-15% of GMV from each of their Fulfillment Centers.
Market
Unprecedented Opportunities in the Alcohol Space
Today, there are over 30,000 brands just in beer and malt beverages, meaning that for 'Powered By TapRm' ™ there is over $312 million in Beer SaaS Revenue in the Total Available Market.
As the 'Powered By TapRm' ™ platform grows, the potential to add wine and spirits cannot be overlooked. There is over $480 million in Wine & Spirits SaaS Revenue in the Total Available Market today.
The overall online alcohol market has exploded since 2019, with a 131% growth of alcohol sales. The online share for alcohol is expected to grow by 55% annually through 2025.
Competition
'Powered by TapRm' ™ Stands Alone
TapRm's all-encompassing brand-focused platform has few (if any) competitors in the alcohol space today -- most of the related businesses cater primarily to consumers, not brands. What makes 'Powered By TapRm' ™ so powerful in comparison is that it can support all the existing alcohol e-commerce players on their platform (and already does for many of them).
'Powered By TapRm' ™ combines the best qualities of all the players in the alcohol e-commerce space: a seamless customer experience, fast and accurate delivery, and a highly customizable platform.
Vision and strategy
Growth Opportunities & National Expansion
'Powered By TapRm' ™ has unlimited potential -- there are a multitude of avenues for future growth
TapRm's focus for the remainder of 2022 is simple, but impactful: continuing their expansion into cities across the U.S. to further the reach of our distribution and same-day delivery, as well as signing on new beer and alcohol brand customers who are excited to grow their presence online.
Value-added services -- including new distribution solutions for all their existing brand customers -- are currently in the early stages of development. TapRm has also begun to explore opportunities in wine and spirits, as well as launching and scaling in-house developed brands on their software platform.
Meet the founder
Founder Jason Sherman
TapRm's innovative founder combines his unique experience in beer, law, and e-commerce to lead the TapRm team
As a Harvard/Harvard Law trained lawyer, Jason has over a decade of experience in the industry managing investments and acquisition decisions into a host of beverage businesses, including e-commerce, CPG, technology, and logistics startups at Zx Ventures, the global incubator and venture capital team founded by Anheuser Busch InBev, the leading global brewer. There, he helped grow startups into thriving, capitalized businesses, each designed to scale into high-value assets. Jason took his experience to simplify the complex U.S. alcohol industry all under one easy-to-use platform, TapRm.
Disclaimers
In addition to the carried interest Republic Deal Room Advisor LLC is entitled to for the syndicated investments it organizes, certain principals of Republic Deal Room Advisor LLC may have a personal interests in these investments, as disclosed below. When making an investment decision please review any applicable disclosures as they represent pre-existing financial interests held by those principals of Republic Deal Room Advisor LLC.
We do not represent that the information contained herein is accurate or complete, and it should not be relied upon as such. Opinions expressed herein are subject to change without notice. Certain information contained herein (including any forward-looking statements and economic and market information) has been obtained from and/or prepared by the Company or other third-party sources and in certain cases has not been updated through the date hereof. While such sources are believed to be reliable, Republic Deal Room Advisor LLC does not assume any responsibility for the accuracy or completeness of such information. Republic Deal Room Advisor LLC does not undertake any obligation to update the information contained herein as of any future date.