LQR House Inc. Maintains Steady Year-Over-Year Revenue Despite Eliminating Paid Advertising, Showcasing SEO Strength While Advancing Profitability Strategy

Rhea-AI Summary

LQR House (NASDAQ:YHC) reported that its flagship website, CWSpirits.com, experienced only a 1.309% year-over-year revenue decline in January 2025 ($151,635.94) compared to January 2024 ($153,647.17), despite completely eliminating paid advertising on Google and Meta.

The company's strong performance, particularly during the traditionally slower 'Dry January' period, is attributed to its advanced search engine optimization (SEO) strategy. As of February 14, 2025, CWSpirits.com ranks within the top five positions on Google US for key industry terms including 'Tequila,' 'Brandy,' 'Bourbon,' and other major spirits-related keywords.

To enhance profitability, LQR House is focusing on optimizing cost of goods sold (COGS) to below 50% while prioritizing organic traffic growth and conversion optimization. This strategy aims to reduce dependence on paid advertising while maintaining sustainable growth in the spirits e-commerce market.

Positive

• Minimal revenue impact (only -1.309%) despite eliminating all paid advertising
• Strong SEO performance with top 5 Google rankings for major industry keywords
• Strategic cost reduction through elimination of paid advertising expenses
• Optimization of COGS targeting below 50% to improve margins

Negative

• Year-over-year revenue decline of 1.309% in January 2025
• Seasonal weakness due to 'Dry January' affecting sales performance

Insights

E-commerce & Digital Marketing Analyst

The minimal revenue impact from eliminating paid advertising reveals a sophisticated digital strategy that many e-commerce companies struggle to achieve. While most online retailers depend heavily on paid acquisition, LQR House's organic search dominance for premium spirit categories demonstrates rare platform maturity. Their top-5 Google rankings for major spirit categories like "Tequila," "Bourbon," and "Whiskey" represent valuable digital real estate that typically costs competitors millions in annual advertising spend.

The timing of this strategic shift is particularly noteworthy. Testing during "Dry January," when industry sales typically drop 15-20%, provides a conservative baseline for performance. The minimal 1.309% revenue decline suggests their organic traffic channels may actually outperform paid acquisition during normal seasonal periods.

The focus on reducing COGS below 50% while maintaining revenue indicates a sophisticated understanding of e-commerce unit economics. By eliminating paid advertising costs (which typically range from 15-30% of revenue in e-commerce) and optimizing COGS, LQR House is attacking profitability from both the revenue and cost sides. This dual approach could potentially double gross margins compared to traditional e-commerce models.

However, this strategy isn't without risks. Organic-only growth can be slower and less predictable than paid acquisition. The company will need to maintain its superior SEO positioning against increasing competition and potential algorithm changes. The real test will come during peak seasons when scaling organic traffic becomes more challenging without paid support.

MIAMI BEACH, FL / ACCESS Newswire / February 24, 2025 / LQR House Inc. (the "Company" or "LQR House") (NASDAQ:YHC), a niche ecommerce platform specializing in the spirits and beverage industry, today announced that despite completely eliminating paid advertising on Google and Meta in January 2025, its flagship website, CWSpirits.com, experienced only a 1.309% year-over-year revenue decline compared to January 2024. The Company believes that this outcome demonstrates the powerful impact of LQR House's advanced search engine optimization (SEO) strategy, as well as the strength of its proprietary UI/UX design and high-converting product offerings.

In January 2025, LQR House recorded revenues of $151,635.94, compared to $153,647.17 in January 2024, despite halting all paid digital marketing. Notably, January is historically a slower month for alcohol sales in the U.S. due to the "Dry January" movement, an annual health campaign encouraging people to abstain from alcohol. Even amid seasonal headwinds, the Company's minimal revenue decline highlights its ability to drive organic traffic and maintain customer engagement without relying on paid acquisition channels.

SEO: A High-Value, Long-Term Competitive Advantage

Unlike short-term paid ads, SEO provides sustainable, compounding value by ensuring a brand remains highly visible in search engines without ongoing advertising costs. As February 14, 2025, CWSpirits.com ranks within the top five positions on Google in the U.S. for high-value industry keywords such as "Tequila," "Brandy," "Bourbon," "Vodka," "Whiskey," "Cognac," "Scotch," "Best Tequila," "Best Bourbon," " Vodka Brands," "Tequila Brands," "Remy Martin," and "Don Julio." These coveted rankings position the website for consistent organic traffic and strong sales conversion rates, further reinforcing LQR House's strategic emphasis on long-term digital growth.

"When our new board members proposed cutting paid ads to optimize costs and focus on profitability, January-historically a slower month for alcohol sales-was the perfect time to test the impact," said Sean Dollinger, CEO of LQR House. "I have to say, I'm incredibly impressed with the results. A mere 1% decline in year-over-year sales, without any paid advertising, is a testament to the power of our SEO strategy and platform optimization. I've always been proud of our top-ranking positions on Google for major spirits-related keywords, but this data proves just how valuable that really is. The ability to maintain strong revenue numbers organically sets us apart in the industry and positions us for long-term, cost-efficient growth."

By prioritizing organic traffic growth, conversion optimization, and operational efficiency, LQR House is strategically cutting back on traditional paid advertising and doubling down on SEO-driven profitability. To further enhance margins, the Company is optimizing cost of goods sold (COGS) to below 50%, ensuring a sustainable path to profitability. This cost-efficient strategy allows LQR House to reduce reliance on Google Ads, fully leverage the power of organic search, and scale inventory strategically to meet growing consumer demand-solidifying its position in the competitive spirits e-commerce market.

About LQR House Inc.

LQR House intends to become a prominent force in the wine and spirits e-commerce sector, epitomized by its flagship alcohol marketplace, cwspirits.com. This platform seamlessly delivers a diverse range of emerging, premium, and luxury spirits, wines, and champagnes from esteemed retail partners like Country Wine & Spirits. Functioning as a technology-driven hub, LQR House utilizes software, data analytics, and artificial intelligence to elevate the consumer experience. CWSpirits.com stands out as the go-to destination for modern, convenience-oriented shoppers, providing a curated selection of alcohol products delivered to homes across the United States. Beyond its role in an e-commerce sector, LQR House is a marketing agency with a specialized focus on the alcohol industry. The Company measures campaign success by directly correlating it with sales on CWSpirits.com, demonstrating a return on investment. Backed by an influential network of over 550 figures in the alcohol space, LQR House strategically drives traffic to CWSpirits.com, enhancing brand visibility. LQR House intends to disrupt the traditional landscape of the alcohol industry, driven by its dedication to providing an unparalleled online purchasing experience and delivering tailored marketing solutions.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Shareholders can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. Forward-looking statements contained in this press release are made only as of the date of this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in other reports and documents that the Company files from time to time with the United States Securities and Exchange Commission (the "SEC"). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the headings "Risk Factors". Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in other reports and documents that the Company files from time to time with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. References and links to websites have been provided as a convenience, and the information contained on such websites has not been incorporated by reference into this press release.

Investor and Media Contact:

info@lqrhouse.com

Contact Information

Sean Dollinger
CEO
info@lqrhouse.com

SOURCE: LQR House

View the original press release on ACCESS Newswire

FAQ

What was YHC's revenue in January 2025 compared to January 2024?

YHC reported revenue of $151,635.94 in January 2025, compared to $153,647.17 in January 2024, representing a 1.309% decline.

How did eliminating paid advertising affect YHC's performance in January 2025?

Despite eliminating paid advertising on Google and Meta, YHC experienced only a minimal 1.309% revenue decline year-over-year.

What is YHC's strategy to improve profitability in 2025?

YHC is focusing on optimizing COGS to below 50%, eliminating paid advertising costs, and leveraging SEO-driven organic traffic growth.

What are YHC's key SEO achievements as of February 14, 2025?

CWSpirits.com ranks in the top 5 Google positions for major industry keywords including Tequila, Brandy, Bourbon, Vodka, Whiskey, and Cognac.

How is YHC addressing the seasonal impact of 'Dry January' on sales?

YHC is focusing on SEO and organic traffic growth to maintain sales performance during the traditionally slower 'Dry January' period.