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How Ritual Zero Proof went from entrepreneur to enterprise with configurable logistics

A non-alcoholic grapefruit cocktail on a marble tray with the spirit bottle next to it

Industry

Food and Bev




Use Case

Business growth, fulfillment, and logistics



Products / Services

B2B and DTC Fulfillment, Prep, Freight, Reserve Storage

 

 

One of the first of its kind, Ritual Zero Proof is shaking up the spirits category with a unique spin on non-alcoholic spirits.

Whether you’re training for a marathon, participating in ‘Dry January,’ or want to drink traditional liquor one night and a mocktail the next, Ritual was crafted to be the liquor replacement that enables you to make your favorite cocktails without the booze. Because balance gives you more of everything.

Creating new rituals

After more than a year’s work and hundreds of iterations to perfect its craft, Ritual launched on Shopify and Amazon in 2020 – fulfilling DTC orders from its centralized warehouse in Chicago.

Orders started pouring in, but Ritual struggled to keep pace with customer demand for two reasons: The first being that Amazon’s restock timelines for new-to-market companies like Ritual were often deprioritized over more established brands. The second being that Ritual was having a hard time managing fulfillment operations on its own with only one warehouse, resulting in slow shipping speeds. These realities were less than ideal for a company thirsty for growth.

Four glass bottles of non-alcoholic spirits in different flavors on a while background.
Ritual Zero Proof bottle cocktails

Ritual knew that in order to sustain a well-oiled commerce business, it needed a strategic 3PL partner with reliable fulfillment and a level playing field with larger brands to run holistic operations from ‘port to porch.’

This is the story of how Ritual Zero Proof grew from entrepreneur to enterprise with Deliverr’s configurable logistics to:

  • Cut the average lead time on wholesale shipments in half
  • Increase on-time delivery of packages from 98% to 99.5%
  • Reduce storage and freight logistics costs by 2% (compared to the previous year) while also fighting heavy inflation pressures
  • Lower prep costs by 32% (compared to the previous year)

The search for a strategic partner with all the right ingredients

Since Ritual wanted an all-in-one logistics partner, Chief Operating Officer Dave DiLoreto put out request for proposals (RFPs) with several 3PLs to find the perfect match.

A tropical pink cocktail sitting on a wooden tray surrounded by fruits and a shaker.
Ritual Zero Proof rum alternative

After carefully weighing the options, he chose Deliverr for its turn-key capabilities, affordable pricing, exceptional customer service, and easy connection to Ritual’s Shopify store. These crucial logistics capabilities, which were hard to find with other 3PLs, would undoubtedly enable Ritual to run more efficiently and grow the business.


“My plan was to find a more optimized fulfillment network for Ritual before the end of 2021. We needed a partner that could guarantee fast delivery of our products and keep up with our growth. Deliverr offered that and so much more. From competitive pricing to network optimization to a seamless digital integration, it was a no-brainer that this was the right partner for Ritual. Deliverr offered the total logistics package we were searching for.”

Dave DiLoreto, COO

 

DiLoreto kicked off the relationship by inbounding a handful of SKUs as a trial run to ensure Deliverr’s network could efficiently fulfill orders. In just a few months, Ritual’s on-time delivery rate went from 98% to 99.5% by transitioning from a centralized network to a multi-network distribution model with Deliverr.

Carefully crafting fulfillment operations with configurable logistics

A year had passed since the partnership with Deliverr began and while the initial fulfillment headache was cured, Ritual was still struggling with the distribution aspect of the business. From an expensive prep service to multiple inconsistent freight brokers to a desire to branch out into wholesale – DiLoreto couldn’t handle it all on his own. So he turned to Deliverr.

A person in a kitchen pouring a cocktail into a glass.
A cocktail being crafted with Ritual’s gin and tequila alternatives

DiLoreto had recently heard of configurable logistics services being added to Deliverr’s offering that could enable Ritual to bring all of its operations under one roof. After an initial kickoff call to dive deeper into these new offerings, DiLoreto realized that ‘strategic partner’ was about to take on a whole new meaning with Deliverr…

Access to an optimized, multi-distribution fulfillment network that strategically places inventory closest to demand? Check ☑️.

Fast, affordable, and hassle-free freight services? Check ☑️.

Kitting prep services for sales-ready inventory? Coming 🔜 in April 2022.

Storage that connects inventory to demand and reduces stockouts? Coming 🔜 in March 2022.

B2B fulfillment capabilities to distribute wholesale shipments to big-box stores and grocers like Total Wine and Binny’s? Coming 🔜 in March 2022.

By mid-2022, Ritual had implemented the entire depth of Deliverr’s configurable logistics services to get goods from port to porch more quickly, seamlessly, and compliantly:

  • 📪 DTC fulfillment enabled Ritual to meet customer demand and secure a 99.5% on-time delivery rate by strategically placing inventory throughout multiple warehouses across the U.S.

  • 🚚 Freight allowed Ritual to optimize truck space and get products from the port and onto warehouse shelves faster. And Deliverr’s cross-dock made inbounding seamless by sending inventory to one location to be disbursed to the appropriate warehouses.

  • 🏬 Reserve Storage helped Ritual avoid stockouts by sending reserved inventory downstream to wholesalers, Amazon FBA, and the fulfillment network. This service, combined with Freight, reduced Ritual’s logistics costs by 2% compared to the previous year (while also fighting heavy inflation pressures).

  • 📦 Prep kitting services ensured Ritual’s fragile glass bottles were properly packaged to avoid damage and non-compliance, and reduced prep costs by 32% compared to the previous year.

  • 🤝 B2B fulfillment made it possible for Ritual to expand into wholesale partnerships and unlock a whole new area of revenue. It also cut Ritual’s average lead time on wholesale shipments in half.

 

Incorporating configurable logistics enabled Ritual to go from entrepreneur to enterprise and helped create a level playing field.

 

 


“Deliverr provides a customized logistics experience that we absolutely love. This is really important for a fast-growing company like Ritual because running a successful business is more than just following what an algorithm tells you to do. It’s human interaction, guidance, and expertise that moves the needle forward. We really value our weekly meetings with the team where we can talk about the future of the business and strategize ways to get there. It shows us a level of commitment you don’t get with other 3PLs.”

Dave DiLoreto, COO

 

Three smiling people sitting outside in a backyard raising up non-alcoholic cocktails.
Party cocktails made with Ritual Zero Proof non-alcoholic spirits.

What the future holds for Ritual Zero Proof

Now that DiLoreto and the rest of the team at Ritual have more free time to focus on growing the business, 2023 is going to be the year of launching new ways to sip and remixing old favorites.

Deliverr is excited to raise a toast to Ritual’s future and help them continue to grow to new heights this year.


Find out how Ritual Zero Proof and other leading brands are growing their business with Deliverr’s Fulfillment and Logistics Services.

 


Want to learn more about how logistics services can transform your commerce operations? Check out these recent resources on our blog:

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