Google-Backed Spirits Startup Aims to Turn ‘Consumers to Co-Creators’ With Blockchain-Based Vodka Launch

Over the past few months, the London-based Degen Distillery has been teasing sneak peeks of a mysterious neon green bottle at high-end sporting events and raves across the United Kingdom. On Tuesday, the brand finally disclosed details on its inaugural 721 Vodka, a blockchain-oriented spirits release brought to market with co-signs from Google and Scottish beverage giant BrewDog . Named in honor of ERC-721, a technical network for managing non-fungible tokens, the vodka is billed as the "world's first spirits brand powered by next-gen technology." In practice, this means that each bottle is backed by an NFT — hardly an innovation in and of itself. Degen goes a step further, however, in distributing a cryptocurrency token that could theoretically cash consumers into the brand's future success. Unlike the vast majority of crypto spirits ventures, which are built using the BlockBar infrastructure, Degen has created an insular buying and selling network exclusive to its products. In a classic bit of Silicon Valley-esque sloganizing, its users have been dubbed the "Degeneration."

“We’re not just a drinks company. We are a lifestyle brand and at the center of everything we do is our community," Sammy Verghese, co-founder and CEO of Degen Distillery, said, according to The Spirits Business ."We are co-creating and leading something unprecedented in any industry – revolutionizing the traditional DTC [direct-to-consumer] model. We’ll be direct to community, changing the roles of ‘consumers’ to ‘co-creators’"

The spirit itself —the first in a series of limited-edition releases — is said to boast "a smooth and warm palate with a hint of spice and a long sweet finish." Behind the scenes, the brand was made possible by a pair of industry giants. Google reportedly contributed funding and technical support while BrewDog lent its direct-to-consumer channels and "state of the art Distillery in Scotland." BrewDog co-founder James Watt remarked:

“Degen Distillery is dedicated to disruption and we’re proud to support Sammy and the team on their journey. We know that working with the community is key to growth and we’re confident that we’re at the start of an exciting journey that will drive significant change and make a lasting impact in the spirits industry.”

How It All Works

Browsing through Degen Distillery's 30-page white paper document, you'll find densely plotted explanations brimming with mentions of tokenized affiliate protocols, minting fees and on-chain voting procedures. In lieu of a crash course in 21st-century economics, we'll attempt to break it down to the bare basics: Rather than immediately receiving a bottle, users who apply or are invited to the network receive what's termed an ORIGO Origins NFT. The NFT can either be held, exchanged for a physical 721 Vodka bottle or sold to another collector. Since early adopters will likely opt to keep their NFT in the hope of future gains, there's a good chance that most bottles will go unredeemed. As with all crypto spirits ventures, this is by design — the higher the scarcity, the higher the value. Degen has also debuted an in-house cryptocurrency called the Drink Token. Minted on the popular Ethereum blockchain, four rounds of future sales are expected to net over $2.5 million in funding for the company. The much-touted community angle of Degen Distillery seems to hinge on these tokens; Drink holders gain access to reduced fees, exclusive access to future releases, member rewards and in-person events hosted by Degen and its partners. Taking a page from the lavish parties thrown by Bored Ape Club and other hyped NFT imprints, Degen seems to be building a userbase in which investments, camaraderie and spirits are all baked into an internal pay-to-play economy. [newsletter-promo]