Online alcohol retailer BoozeBud has called in the administrators, becoming the latest Australian startup to falter as economic conditions turn against consumer-facing business.
Documents posted by the Australian Securities and Investments Commission reveal Pocko Pty Ltd, trading as BoozeBud, appointed Michael Brereton and Sean Wengel of William Buck as joint administrators on Tuesday.
Brereton and Wengel were not immediately available for comment Wednesday afternoon.
The BoozeBud website was online as late as Wednesday, however, a message informed customers that the business is no longer accepting orders.
Launched in 2014 by Alex Gale, Mark Woollcott, and Andy Williamson, the Sydney-based company initially challenged brick-and-mortar bottleshops under the name Beerbud.
Originally viewed as a beer-focused competitor to online wine retailer Vinomofo, its scope expanded in 2016 under its new BoozeBud moniker, a move that helped the startup represent a wider variety of liquor.
The enterprise and its pure-play online model won the attention of giants in the alcohol industry, and BoozeBud was acquired by ZX Ventures, the venture arm of global titan AB InBev, in 2018.
The acquirer said BoozeBud would benefit from a capital injection, helping it deliver “a bigger range, quicker delivery and an amazing shopping experience.”
When Asahi bought Carlton & United Breweries from AB InBev in 2019, ZX Ventures also moved to the Japanese beverage conglomerate.
Citing a review of its e-commerce strategy, Asahi sold BoozeBud back to its founders in 2020.
“Over the last two and a half years the business has grown more than six times and is now the leading pureplay online alcohol retailer in the country,” Williamson said at the time.
BoozeBud subsequently acquired the two-decade-old Get Wines Direct in late 2021, a move the company claimed would grow its active customer base to 200,000 people and provide $80 million in combined annual revenue.
More recently, under the leadership of new CEO Stuart Barclay, BoozeBud moved warehouses and third-party logistics providers, rebuilt its digital marketing channels, and changed offices.
Celebrating the developments on LinkedIn two weeks ago, chief marketing officer Dan McMillan declared the changes would help BoozeBud become a “leaner, meaner, and more efficient operation.”
Those operational upgrades came during a harsh environment for retail and delivery startups.
Not only have players like Deliveroo and Milkrun stumbled due to rising costs, the post-pandemic environment has made it easier for Australian consumers to visit traditional bottleshops, cutting some of the advantages offered by online delivery platforms.
At the same time, alcohol delivery options provided by international rideshare giants like Uber has brought new competition to domestic enterprises.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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