- Patrón has teamed up with BlockBar.com, which purports to be the world’s first direct-to-consumer non-fungible token (NFT) marketplace for alcohol and spirits, to release its first NFT, the company said in a press release.
- Purchase of the NFT grants ownership of a physical bottle of Chairman’s Reserve, limited to 150 individually numbered bottles.
- The endeavor marks a meeting of the physical and digital marketplaces. As public awareness around NFTs grows, brands are utilizing them to provide a unique experience for their consumers as the shift to digital commerce continues.
Patrón Spirits Co. is breaking into the NFT space with its limited-edition Chairman’s Reserve, joining the growing trend of brands leaning into digital commerce.
The limited-edition tequila will be made available for purchase only on BlockBar.com, which purports to be the first and largest NFT marketplace for high-end or rare spirits and wines. Founded in October 2021, it allows consumers to invest in rare wine and spirits, with the backing of an NFT issued by the brand owner. This helps to remove questions around authenticity.
Once the NFT is bought from BlockBar, the purchaser can opt to keep the NFT while the physical bottle is stored in a secure facility in Singapore or “burn” the NFT in exchange for the physical bottle. A certificate of authenticity is held on the blockchain as proof of ownership while the cryptographic version will be securely held by BlockBar. The NFT can be traded or sold by the buyer, without questions around authenticity.
“Brands and consumers face various obstacles in the spirits industry. Some of which include access, communication, storage and authenticity. Our goal was to find a way for NFTs to solve a real problem in an industry. Utilizing blockchain technologies, BlockBar.com enables consumers to connect directly with brands and address many of the obstacles in the industry," said BlockBar co-founder Dov Falic in an email to Marketing Dive.
NFTs are traditionally associated with digital products such as $2.9 million tweets and cat memes that go for almost $600,000. However, many brands have been quick on the uptake as digital consumerism grows. Brands are eager to offer consumers a new digital experience, and NFTs can help to increase brand affinity and awareness by providing personalized, one of a kind products and gifts to their customers.
Patrón’s move into the space marks a growing trend. In 2020, the total market value generated by NFTs stood at $95 million. By the end of the second quarter of 2021, that had grown to $2.5 billion.
"Adoption is still very low for NFTs worldwide, with BlockBar we make it easier to get into the NFT world. There is a physical asset backing every digital asset you are purchasing. This becomes intriguing for all ages and demographics," Falic said.
The 750 ml bottle will go on sale at 10 a.m. EST on Jan. 25, 2022. They will be available on a first come, first served basis and is priced at 1.5 Ethereum, which equates to approximately $2,200, as of press time.They can also be purchased by credit card. and will be eligible for redemption from BlockBar on April 1, 2022.