How a Leading RTD Cocktail Brand Overcame Market Barriers to Establish a Successful Presence in the Middle East
FUNKIN Cocktails, a well-established ready-to-drink (RTD) cocktail brand, faced significant hurdles in entering the Middle East market. Despite global market success, challenges around distribution, regulatory compliance, and brand positioning slowed their market entry.
Through Craft & Culture’s Access Middle East service, FUNKIN Cocktails successfully established a foothold in the UAE’s premium on-trade sector, particularly in high-end hotels, rooftop bars, pool & mini bars and entertainment venues.
This case study highlights how a tailored, bottom-up strategy led to sustainable growth in a region historically dominated by traditional cocktail offerings.
Challenges
Regulatory Complexity
Importing RTD alcohol products into the UAE involves strict licensing, customs approvals, and labeling requirements. FUNKIN faced delays in securing a route to market due to the complex regulatory landscape.
Distributor Hesitation
Local distributors were reluctant to adopt FUNKIN’s RTD range, as the category was still relatively new in the region. Many focused on spirits and beer, leaving innovative RTD products underprioritised despite strong consumer demand.
Limited Brand Awareness in the Region
Unlike traditional cocktail brands, FUNKIN Cocktails lacked visibility in key on-trade venues, making it more challenging to convince venue operators to stock RTDs. Without a strong local presence, distributors were unwilling to push the product.
High Entry Costs & Market Education
Launching through major distributors required high listing fees and large minimum order quantities, presenting a financial risk before the brand had proven itself in the market. Additionally, the RTD category required education for on-trade decision-makers, as fresh cocktail preparation remained the dominant method in high-end venues.
Approach
To overcome these barriers, Craft & Culture implemented a targeted, bottom-up strategy, ensuring FUNKIN Cocktails could enter the market effectively while mitigating financial and operational risks.
Strategic Stock Positioning Through Local Warehousing
Rather than relying on expensive air freight, FUNKIN’s stock was positioned in local bonded warehousing through Access Middle East, ensuring faster fulfilment and availability.
IMPACT
Reduced supply chain delays, allowing venues to order stock with shorter lead times.
Lower costs compared to direct shipping from the UK, improving price competitiveness.
Navigating Regulatory Compliance & Importation Support
Craft & Culture managed the complex licensing, customs approvals, and import regulations, ensuring FUNKIN Cocktails could operate legally in the UAE without unnecessary delays.
IMPACT
Fast-tracked market entry within months, rather than years.
Full compliance with UAE alcohol laws, reducing risk for distributors and venue partners.
Direct Engagement with On-Trade Venues
Rather than waiting for distributors to push the brand, Craft & Culture directly engaged with high-end hotels, beach clubs, and entertainment venues that were looking for convenient, high-quality cocktail solutions.
Key Venue
5-star hotels and rooftop bars looking to streamline cocktail service.
High-volume beach clubs and nightclubs where speed of service is key.
Impact
Secured early on-trade listings without relying on distributor-led initiatives.
Established FUNKIN Cocktails as a premium RTD solution, solving operational challenges for venue operators.
Brand Activation & Trade Education
Craft & Culture developed custom brand activations, tastings, and staff training to educate venues on FUNKIN’s quality and convenience.
Key Events Included
Tasting Sessions for hotel and bar staff to highlight FUNKIN’s superior taste vs. traditional cocktails.
Speed vs. Fresh Comparison Events, demonstrating time efficiency for bartenders.
Collaborations with Local Mixologists to integrate FUNKIN into curated cocktail programs.
IMPACT
Increased venue buy-in and staff confidence in recommending FUNKIN Cocktails.
Positioned FUNKIN as the leading RTD cocktail solution in the UAE’s premium on-trade sector.
Sustainable Growth Strategy & Brand Positioning
Instead of overcommitting to high distributor MOQs (Minimum Order Quantities), FUNKIN was managed as a tail brand—gradually building demand before expanding to broader distribution.
IMPACT
Prevented early-stage overstocking, reducing financial risk.
Allowed for strategic expansion into Dubai Duty-Free, Abu Dhabi, and the wider GCC.
Direct Collaboration with Key Venues
Rather than depending solely on distributors, FUNKIN gained direct access to luxury hotels, premium bars via pool and mini bars through Craft & Culture’s established network in Dubai & Abu Dhabi. The focus was on venues that aligned with the brand’s premium and craft positioning.
Key Venues
5-star hotels and rooftop bars known for offering curated tequila selections
Fine dining establishments and cocktail lounges seeking unique spirits to enhance their offerings.
IMPACT
Secured listings at high-profile venues, including signature placements on cocktail menus.
Built strong relationships with F&B managers and sommeliers, who became advocates for the brand.
Brand Building Through Tastings & Activations
Craft & Culture helped organise targeted brand activations, tequila tastings, and training sessions for venue staff to build awareness and educate them about FUNKINS bar tender quality cocktails.
Events Included
Exclusive tequila tastings for hotel and bar staff to understand the brand’s premium positioning.
Collaborations with local influencers and mixologists to drive visibility.
IMPACT
Increased staff buy-in and familiarity with the brand, leading to stronger recommendations to customers.
Enhanced consumer engagement through experiential events, boosting word-of-mouth marketing.
Market Entry Timeline
Successfully shipped product and launched in Dubai & Abu Dhabi within 4 months of partnering with Craft & Culture.
Results & Key Milestones
On-Trade Placements
Secured listings in luxury hotels, bars, Pool and mini bars & mainland Retail
Sales Growth
Achieved consistent month-over-month growth in on-trade sales, driven by tastings and activations.
Distributor Collaboration
Established a distributor partnership, supported by demonstrated demand and initial success.
Brand Awareness
Increased awareness among on-trade staff and consumers through experiential marketing efforts.
Brand Strategy For Sustainable Growth
Craft & Culture ensured that Funkin’s growth was measured and sustainable by focusing on building bottom-up demand before expanding to larger volumes. By managing the brand as a “tail” within the distributor’s portfolio, they avoided over-committing to high minimum order quantities that could have resulted in slow-moving stock.
IMPACT
Prevented early-stage overstocks and reduced financial risks.
Positioned the brand for gradual expansion across multi-city markets like Dubai and Abu Dhabi.
LESSONS LEARNED
Final Throughts
FUNKIN Cocktails’ success in the UAE demonstrates that premium RTDs have strong potential in the Middle East, but entry requires smart positioning, local engagement, and the right infrastructure. By focusing on bottom-up demand generation and supply chain efficiency, FUNKIN is now well-positioned for further expansion across the GCC region