Today, it’s Blue Apron who is adding wine delivery. The Brooklyn startup offers “fresh ingredients, great recipes delivered weekly to your home.” Although I haven’t tried it, lots of people have since the company says they deliver three million meals-in-a-box per month now. Started in 2012, the company closed a $150 million round of funding at a $2 billion valuation.
They have just announced that wine will now be able to be delivered with the ingredient boxes. Sounds great! But which wines? They are mum on that. The only option is to sign up for the $65.99 monthly sampler, which includes six bottles. There’s a catch: the bottles are only 500ml, or two-thirds the size of a regular bottle. This unusual size means that they are not buying wines off the shelf but rather having a (domestic?) winery source the wine and put it in their unusual bottle size.
This particular arrangement could be a good thing–it could reduce prices to the consumer by some form of buying directly from wineries. But without knowing any producers going into the subscription, I’d be leery. Once bitten, twice shy–good thing you can cancel any time. An email to Blue Apron seeking further clarification of sourcing and how they are navigating the regulatory red tape was not returned.
But wait: The story is not over! In their piece on the news, Reuters quotes the Blue Apron CEO, Matt Salzberg, as saying “We think because we already have our large customer base already cooking meals with us on a regular weeknight basis, over time we can be the largest wine e-commerce company in the country.”
Wine e-commerce is mostly a snarl of red tape, and most companies in the space are private so it is hard to get information on revenues. Wine.com’s CEO posted that they had $75 million in sales in 2013. Further, Amazon is testing wine delivery in several markets and they are a formidable competitor in any area. Fresh Direct sells and delivers wines now. Some wine stores do tens of millions of dollars of e-commerce business. So Salzberg must have had a double shot of ambition in his coffee this morning to think Blue Apron wine is going from $0 to $75 million+ with (possibly) unknown wines in 500ml bottles!
Have you gotten wines from them? If so, how are they? Hit the comments!
The Albany Times Union has a detailed account of the wrangling that has led to the suspension (indeed, on the NYT wine club site, New York is not even an option for sign-ups–the wine club continues in other states). The NYT wine club is run by a group called Global Wine Company and does not, as the Club’s web site states, make selections with the NYT wine critic or members of the newsroom. The Club offers six-bottle shipments for $90 or $180 on various monthly schedules. Global Wine Co also fulfills the club shipments for the Williams-Sonoma, the Washington Post and Food & Wine.
The Times Wine Club told its New York subscribers last week that it would have to suspend shipments until July because of uncertainty over New York’s rules and regs about shipping. However, the State Liquor Authority spokesperson told the Times Union that the Club’s local retailer had stopped doing business with them since Global Wine Co, based in California, had received cease-and-desist letters.
I’m not a huge fan of wine clubs in general–I’d opt for spending a monthly budget at a local store where the wine discussion is free and you have more choices to get exactly what you want. But there’s no reason that New York consumers should not be allowed to subscribe.
While this particular incident revolves around the Gray Lady, what consumers and businesses need is to get out of a gray area: hopefully the new head of the NY SLA will clear the air and issue understandable guidelines for businesses to ship into and out of the state.
Wine made Page Six! This should be good, right?
The NY director of sales and the district manager at Southern Wine & Spirits (SWS), one of the country’s behemoth wine and spirits distributors, hold the honor. According to the NY Post, they lost Laurent-Perrier champagnes from their portfolio. So they decided to go to a night club, The Hustler Club, order two bottles of the wine for $1,000, then be photographed dumping the wines out. Oh, and one of the pictures had a stripper fondling the sales director’s crotch.
Badda bing! Then they sent the pix to Sabine Lapatie of Laurent-Perrier. Keepin’ it classy! Small wonder Laurent-Perrier left Southern. See the pix over at nypost.com
Since the Post story, Southern says that the two have been suspended pending an investigation into what it called the “disturbing allegations.”
The Swiss franc surged in foreign currency trading yesterday as the central bank decided to stop defending the 1.20 floor with the euro. Last trade in the EURCHF was 0.99, so that’s a 20% surge for the Swissie. The CEO of Swatch was appalled at the currency move will likely send prices higher in foreign markets for the “Swiss made” watches. James B. Stewart, one of my favorite financial journalists, has an article in today’s Times examining the role of currency moves on various luxury products (and was kind enough to include a quote from Dr. Vino).
The euro hit 1.18 against the US dollar overnight, a level last seen in 2006. One might think that suddenly Barolos, Burgundies and Champagnes will become cheaper here in the US. Well, a European wine lover can dream…Here are eight reasons why we won’t see discounts on wine shelves in the immediate future.
1. Retailers have stock on their shelves already. They have to clear that inventory. On that note: Read more…
The self-proclaimed “Mr. Wonderful” on the ABC show “Shark Tank” reached an agreement to invest $2.5 million in the single-serve wine company called Zipz. That gave Zipz the $25 million they were seeking.
Making the presentation for Zipz was Andrew McMurray. McMurray is more known in the wine world as Read more…
Here’s today’s bit of wine law crazee: back in June, the Sacramento Visitor and Convention Center tweeted a link to a local supermarket’s annual consumer tasting, which has over 300 local wineries (and many breweries) pouring their wares. One participating winery’s account on Twitter retweeted that tweet. And now, they are getting rapped on the knuckles by the Cal ABC, the state’s liquor regulatory authority.
A chill has since frozen the fingers tapping out winery tweets across the Golden State. If a winery’s license could be jeopardized by a generic retweet to a huge tasting, wineries may fear what right to freedom of speech they have. Read more…
Before wine enthusiasts get too excited, it’s worth noting that the beverage is more wine-arita than winery. Let’s break it down. Called Beatbox wines, it comes in a box styled as a beatbox. Nice! Two 5-liter boxes sell on their site for $64.99, which comes out to the equivalent of about $5 a bottle. So they’ve got the value pricing covered. And now, the content: this “wine-based” beverage with 11.1% alcohol comes in several flavors including Blue Razzberry Lemonade and Cranberry Limeade. Oh, and these serving instrux: “Try BeatBox on its own, with a mixer, in a cocktail, or as frozen BeatBoxicles!”
Billionaire Mark Cuban put it best on the show: “You’re not selling wine. You’re selling fun.”
Kevin O’Leary tasted it and proclaimed, “This tastes like S**t!” And then he bid on a slice of the company.
But it was Cuban who came out ahead, giving the Austin-based entrepreneurs five times the amount of money they were seeking for a third of the company’s equity–at a 50% higher valuation than they were seeking.
Given the myriad laws governing wine retail and distributing, here’s hoping that BeatBox doesn’t give Mark Cuban a $1 million hangover.