What does allocated mean with liquor?

Answered by Michael Weatherspoon

Allocated, in the context of liquor, refers to a limited distribution of certain highly sought-after among different retailers, vendors, or other points of sale. When a liquor is allocated, it means that each seller has been assigned or allotted a specific quantity of that particular spirit to sell.

The concept of allocation is particularly prevalent in the world of rare and limited-edition liquors, where the demand often exceeds the supply. These spirits can range from limited-release whiskies to small-batch craft beers, and even exclusive wines. Due to their scarcity and desirability, the producers or distributors of these beverages implement an allocation system to ensure fairness and equal distribution among the retailers.

In my experience as a sommelier and brewer, I have witnessed the excitement and frenzy that surrounds allocated spirits. People eagerly anticipate the release of these products, often lining up outside stores or joining online waiting lists in the hopes of securing a bottle. The limited nature of these spirits creates a sense of exclusivity and rarity, making them highly coveted by enthusiasts and collectors.

The allocation process itself can vary depending on the producer or distributor. Some may allocate based on a store's previous sales history or loyalty, while others may use a lottery system to determine who gets access to the limited supply. In some cases, the allocation may be done directly by the producer to a select group of retailers or even through an auction system.

One of the reasons behind the allocation system is to prevent hoarding and ensure that a wider range of consumers have the opportunity to enjoy these exceptional spirits. By limiting the quantity available to each retailer, it helps to distribute the bottles more evenly across different locations. This practice aims to discourage resale at inflated prices and promote a fair chance for enthusiasts to acquire these rare gems.

However, the allocation process can also lead to frustration and disappointment. As a consumer, it can be disheartening to learn that your favorite store has only received a limited number of bottles, or worse, none at all. It often requires persistence, patience, and sometimes luck to secure a bottle of an allocated spirit.

From a retailer's perspective, the allocation system presents both opportunities and challenges. On the one hand, having access to allocated spirits can attract customers, generate excitement, and boost sales. On the other hand, retailers must navigate the delicate task of satisfying demand while dealing with limited supply. Balancing the allocation among loyal customers, regular patrons, and new customers can be a difficult task, and it requires careful consideration and understanding of the market dynamics.

The term “allocated” in the liquor industry signifies a limited distribution of highly desirable spirits among different retailers or vendors. It creates a sense of exclusivity and rarity, fueling anticipation and enthusiasm among consumers. While the allocation system aims to ensure fair distribution, it can also lead to disappointment and frustration for those unable to secure a bottle. Nevertheless, the allure of allocated spirits continues to captivate enthusiasts, making them highly sought-after and cherished in the world of liquor.