How Free Spirits is Redefining Growth and Profit in Ecommerce

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The world of ecommerce and consumer brands has long been dominated by traditional alcohol companies, but a shift is happening. Consumers are demanding more options—ones that allow them to enjoy the ritual and social aspects of drinking without the downsides of alcohol.

At the forefront of this movement is Milan Martin, founder and CEO of The Free Spirits Company. His brand is not just another non-alcoholic beverage—it’s a reimagination of the drinking experience that keeps the social ritual intact while eliminating the hangovers, health risks, and negative effects.

We sat down with Milan to discuss how he built Free Spirits, the challenges of scaling a brand in a competitive space, and the role of ecommerce in driving discovery, growth, and profitability.

The Changing Landscape of Alcohol and Consumer Choice

Milan founded Free Spirits in 2020 during a cultural shift—one where people began reassessing their relationship with alcohol.

  • Consumers want options: The rise of personalization (think: endless Starbucks drink variations) has led to people expecting the same flexibility in their social lives.
  • Big Alcohol’s old playbook is fading: For years, advertising convinced consumers that alcohol was essential for celebration, relaxation, and socializing. Free Spirits challenges this notion.
  • The focus is on experience, not intoxication: The real value of a cocktail isn’t the alcohol—it’s the craftsmanship, flavors, and shared moments that make drinking enjoyable.

“The industry wanted us to believe alcohol was the star of social drinking. The reality? It’s the experience.”

Instead of convincing people to quit drinking, Free Spirits presents an alternative that allows them to enjoy the best parts of drinking—without the consequences.

Building a Brand from the Ground Up—One Step at a Time

Unlike many entrepreneurs who take the "jump off a cliff" approach to starting a business, Milan built Free Spirits through small, calculated steps.

  • No sudden leap: He started with a simple idea and slowly built from there.
  • Ecommerce was the testing ground: With COVID shutting down bars and restaurants in 2020, direct-to-consumer (DTC) was the only viable option.
  • Mistakes were part of the process: Early errors in manufacturing, supply chain, and marketing were easier to fix in ecommerce than they would have been in retail.

“I kind of punked myself into it. I kept taking small steps until I looked back and realized—wow, we’re really doing this.”

By the time Free Spirits expanded into retail distribution, the brand had already been refined through thousands of ecommerce customer interactions, allowing them to scale intelligently.

Ecommerce as a Growth and Profit Engine

Unlike traditional alcohol brands that rely on bars, liquor stores, and distributors, Free Spirits leverages ecommerce as a competitive advantage.

  • 40-45% of sales still come from direct-to-consumer (DTC) through Shopify and Amazon.
  • Ecommerce fuels retail growth: Many customers first discover Free Spirits online, then start buying it at major retailers like Total Wine, Safeway, Binny’s, and BevMo.
  • Paid media acts as both brand awareness and sales driver: Even when customers don’t buy online, digital advertising creates familiarity—so they recognize the brand when they see it on store shelves.

“Our ecommerce business is a discovery vehicle. It’s how people first hear about us, and then they start buying in retail.”

This omnichannel approach is critical for long-term growth and profitability, allowing Free Spirits to scale efficiently without burning excessive cash.

The Brutal Reality of Scaling a Consumer Brand

Scaling a brand—especially in a category that didn’t exist before—isn’t easy.

  • Retail is expensive: Getting on store shelves is one thing. Staying there requires marketing support, slotting fees, and retailer promotions.
  • Customer acquisition is constantly shifting: AI and privacy changes are making paid media more unpredictable.
  • Fundraising is brutal: While Free Spirits has raised some capital, they’ve done so conservatively—operating with 1/10th of the funding of competitors while driving higher revenue.

“I never wanted to be a company that just burned cash to acquire customers. That’s not sustainable.”

Milan deliberately avoided the “grow at all costs” venture capital model, instead focusing on profitability, operational efficiency, and long-term brand building.

How Free Spirits Competes Against Both Alcohol and Non-Alcoholic Brands

Unlike other non-alcoholic beverage companies, Free Spirits straddles two categories:

  1. Alcoholic spirits – Competing for shelf space in liquor stores next to traditional whiskey, gin, and tequila.
  2. Non-alcoholic alternatives – Competing against brands like Athletic Brewing, Seedlip, and Ritual.

“We’re not just competing with other brands—we’re competing against old habits and consumer apathy.”

This dual battle requires constant education and creative marketing—including hilariously turning negative comments into marketing opportunities.

Example: After someone said Free Spirits was like “hiring a hooker for a hug,” the team hired a professional sex worker to give people free hugs and cocktails, turning the criticism into viral content.

Mental Resilience and Durability in Business

Every founder faces rejection, doubt, and failure—and Milan is no exception.

  • Raising capital involves endless no’s. Every rejection can feel personal, but Milan reframed them as validation that he was onto something different.
  • Business challenges are unavoidable. Legal threats, supply chain issues, and cash flow problems are all part of the game.
  • Mental strength is key. Milan embraces Stoic philosophy, Ryan Holiday’s The Obstacle is the Way, and the idea that growth comes from discomfort.

“I used to take rejection personally. Now, every ‘no’ just gets me one step closer to a ‘yes’.”

By building resilience, he’s turned Free Spirits into a brand that’s durable, profitable, and built to last.

Lessons for Ecommerce and Consumer Brand Founders

If you’re building a consumer brand and want to drive growth and profitability, here’s what you can learn from Milan’s journey:

  1. Use ecommerce as a discovery channel. Even if retail is your end goal, DTC helps validate your brand before expanding into stores.
  2. Profitability matters more than just growth. Avoid the trap of spending VC money recklessly just to scale quickly.
  3. Turn obstacles into marketing opportunities. Negative comments? Use them to create brand moments and viral content.
  4. Build mental durability. Business is tough—embrace discomfort and keep moving forward.
  5. Compete on multiple fronts. If you’re creating a new category, be prepared to educate customers and challenge old habits.

Final Thoughts: The Future of Free Spirits

Free Spirits is more than just a product—it’s part of a cultural shift toward smarter drinking.

  • The non-alcoholic market is booming. Consumers are looking for premium, functional alternatives that still feel exciting.
  • Retail and ecommerce will continue to fuel each other. The brand is positioned for long-term omnichannel success.
  • It’s about offering options, not eliminating alcohol. Most Free Spirits customers still drink alcohol, but they now have a choice.

“We’re not anti-alcohol—we’re pro-experience. Drink what you love, without the downsides.”

Where to Find Free Spirits

A huge thanks to Milan for sharing his journey. If you’re looking to grow an ecommerce brand while staying profitable, take a page from Free Spirits—stay lean, get creative, and never stop adapting.