Thanks to the work of a modern wave of trailblazing distilleries, moonshine has come a long way since the days when the homemade liquor was distilled in secret. Turning it into a decadent sweet boozy treat hasn’t hurt things, either.
Piedmont Distillers, North Carolina’s first legal distillery founded in 2005, is one of the handful of distilleries that has brought the unaged whiskey to mass market with its brand Midnight Moon. The distiller is also behind splashier new brands, like hip-hop star Nelly’s MoShine from earlier this year.
The category has gone through its ups and downs, after “shaking out less than quality entrants” and stabilizing into a growth trajectory about three or four years ago, according to CEO Joe Michalek. Moonshine sales grew 2.9% year-over-year in the off-premise in the 52 weeks ending September 9, according to NIQ data provided by 3 Tier.
“There’s only about three or four now depending on what region you’re in that are defining the legal moonshine space,” said Michalek.
Those include category leaders Ole Smoky and Midnight Moon, followed by Sugarlands. The jarred spirits are dominated by multiple flavor extensions and SKUs, and have a consumer base that over-indexes in certain Southeastern and Midwestern areas, but have found traction outside of major metropolitan cities, according to Michalek.
Now, the distillery is tapping into a new segment: moonshine-based cream liqueurs, an innovation other brands have also begun offering that builds on the spiking post-pandemic demand for indulgent, nostalgic flavors. That sweet tooth is part of what has fueled the recent rise of premium flavored whiskeys as well.
Moonshakes’ national launch in four flavors was planned for August but has been scaled back to nine states to meet the overwhelming demand, which is five times what Piedmont Distillers estimated for the initial rollout. The team in North Carolina shipped over 5,000 cases in six weeks, triggering teams to run 24 hour production lines to keep up.
Michalek said that the company has had to stagger distribution to certain retailers, prioritizing accounts based on initial enthusiasm. This month it will begin e-commerce sales and an additional production line coming in early December will allow it to reach a further 12 or 13 states by the end of this year, and more in 2024.
In New York, distributor Empire Merchants sold almost 3,300 cases into 500 accounts in the first six weeks (some backordered), with 47% of the accounts buying nine cases of each. Christina Maroulis, owner of Williamsville-based Wine & Liquor Villa, a 3,000 square foot liquor store in a suburb of Buffalo, attributes her sales to Moonshakes’ price point and floor displays (which are made by stacking three cases). Both have made a difference compared to other seasonal releases.
“I brought in a major vodka brand’s seasonal offering at the same time and I haven’t sold a bottle yet,” she said.
The product itself piques customer’s curiosity, but at just under $20 it also hits the spot on price for a dessert flavored brand, according to Maroulis. Customers are more willing to part with a $20 bill and try something new over spending a few dollars more on Bailey’s which is the go-to on that sweet cream liqueur shelf, she said.
Plus, the floor displays carrying mason jars, covered in bright red, white and blue with the tagline “not your everyday shake,” attract attention.
“It’s a novelty item,” she said. “And I think that the packaging and the actual product itself exceeded the expectation that I have for other cream based products in similar price points.”
But in an era of BevAlc saturation, how can Moonshakes keep the momentum going well into the indulgent holiday season?
The brand’s trial-friendly $2.99 50 ml mini-mason jars in counter displays have helped. On-premise accounts in Wisconsin and Michigan have also latched onto the 50 mls as chilled shots.
“We researched each market and identified the accounts that were selling adult milkshakes,” said Michalek. “And then we asked our distributors to prioritize their on-premise teams to go present to them.”
Those restaurants are diners and other-nostalgia fueled concepts that are tapping into the same retro Americana brand ethos as Moonshakes. The brand is expanding those conversations with large restaurant chains for placement in 2024, and will launch a full-scale PR plan once it reaches wider distribution next year.
“We’ll go to consumer media once we get into the first quarter,” Michalek said. “And in all the introductory markets, we’re doing your classic geo targeting and advertising, display advertising and everything to drive toward account selling and tying into accounts’ social platforms as well.”
In-store sampling has also helped at Wine & Liquor Villa. Compared to sales of other products in a similar category, RumChata’s Pumpkin Spice edition for example, Maroulis has already seen more repeat sales of Moonshakes.
“I did an in-store sampling last week, and I already had people who bought after the sampling come in and repurchase the brand,” she said.