After shaking up the way alcohol gets from store to consumer, Boston booze delivery app Drizly has attracted attention from the country's biggest alcohol distributors, according to a Wall Street Journal report.
A trade group that represents hundreds of distributors, the Wine & Spirits Wholesalers of America, has invested an undisclosed amount into Drizly for a minority stake, the report says. A Drizly spokesperson confirmed the news on Tuesday. The investment, however, was actually part of a previous round of funding for Drizly and doesn't represent a new investment, the spokesperson said.
The trade group is also receiving a seat on Drizly's board, the WSJ reported.
Previously, Drizly raised $4.8 million in funding — $2.3 million in January 2014 and $2.5 million last May. Backers include Suffolk Equity Partners and Continental Investors, as well as local angels including Walt Doyle, Lars Albright, Ty Danco, Fred Shilmover and Streetwise Media co-founder Chase Garbarino, to name a few.
Meanwhile, Drizly is now aiming to expand to 30 U.S. cities by the end of 2015. The startup last week expanded to its 13th city, Minneapolis-St. Paul.
Other recent milestones for Drizly—which no doubt helped get the attention of major distributors—included a deal with MillerCoors to offer free delivery service in four major markets.
Via the WSJ:
Trade association members said they took the unusual step of investing in the startup because consumers increasingly expect to be able to use their phones to order products and have them delivered, said Danny Wirtz, president of Wirtz Beverage Group, the nation’s sixth largest distributor by sales. Mr. Wirtz said it was time for the alcohol industry to innovate, and Drizly offered a “great solution to retailers, to buyers and to users to get product responsibly to consumers” on demand.
Rebecca Strong contributed to this report.
