Drinkworks, the at-home cocktail company launched as a joint venture between Anheuser-Busch InBev (A-B) and Keurig Dr Pepper, will go dry, the companies announced Wednesday.
“Today, we made the difficult decision to close Drinkworks, with sales of Drinkmaker machines ceasing immediately, and sales of cocktail pods, CO2 and accessories ending March 31, 2022,” Drinkworks CEO Nathaniel Davis said in a statement to Brewbound. “I want to thank our passionate community of Drinkworks consumers, employees and partners for their support over the past four years.”
The Bedford, Massachusetts-based company informed wholesalers of the decision on Wednesday.
“Drinkworks will be communicating the news to chain retail partners but appreciate your support in communicating to local retail partners,” Davis and Drinkworks VP and chief sales officer Chris Williams wrote in a note.
All owners of Drinkworks home bar systems are eligible to receive a refund from the company through February 28, regardless of where or when they bought their machines. Home bar systems were sold online and at select brick-and-mortar retailers, such as Best Buy, while pods – which contain alcohol – are sold through the three tier system. Wholesalers will be reimbursed for any remaining Drinkworks inventory after March 31.
Cocktail pods, which retail for $17.99-$19.99 for a 4-pack, are available in classic drink styles – such as cosmopolitan, Long Island iced tea and whiskey sour – and in co-branded specialty collections with popular spirits makers, such as Kahlua, Absolut, Jack Daniel’s and Deep Eddy. Drinkworks is discounting drink pods to promote the depletion of inventory before March 31. Users insert pods into the Drinkmaker machines in the same way they would a K-cup into a Keurig coffee brewer, and the machine produces a cocktail.
The home bar system first rolled out in 2019 and was available in Missouri, Florida and California at launch. Eventually, drink pods were available in 36 states, according to Drinkworks’ website.
In March 2020, coincidentally as the COVID-19 pandemic forced the closure of bars and restaurants, Drinkworks launched a line of beer pods with A-B’s Golden Road. Each pod, when inserted into the Drinkmaker, poured a 14 oz. beer.
Two developments in the cocktail space likely complicated matters for Drinkworks: consumers’ increasing interest in at-home mixology following the shutdown of bars and restaurants, and the growth of ready-to-drink canned cocktails.
The portfolio of ZX Ventures, A-B’s investment and innovation arm which oversaw Drinkworks for the company, also includes Perfect Draft, a United Kingdom-based at-home tap system that pours from 6-liter mini kegs.