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Why Music Companies Are Cashing In On Alcohol
Aug 30, 2016
(Forbes) - If you attended AFROPUNK Fest in Brooklyn last weekend, you may have spotted some peculiar wine packaging onsite.
In a quest to disrupt the alcohol industry, a new brand of premium wine calledElectric Sky is making the rounds at music festivals across the nation, including AFROPUNK, Governors Ball and Life is Beautiful. The wine, with options of Pinot Grigio, Rosé and a Red Blend, is served not in a traditional glass bottle, but rather in stackable, single-serve, 100% recyclable capsules, offering more portion control and portability.
Even more interesting is the creative kingdom behind Electric Sky: Interscope Records, a company known more for its roster of superstars like Lady Gaga and Kendrick Lamar than for its beverages. Alcohol may seem irrelevant to their business model, but is just one example of how music’s digitization has sparked a rush toward diversification.
In fact, launching a wine line as a record label makes sense for extending influence and brand loyalty across wider cultural moments, and through otherwise overlooked channels. As a pure numbers game, this strategy seems to be working: while wine typically accounts for around 1% of overall concessions sales at music festivals, Electric Sky has been raising that percentage to 16%.
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