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.
Club W, a wine club that sells private label wine directly to consumers, has raised $9.5 million in its latest round of funding. The company, led by CEO Xander Oxman, had previously raised $3.1 million in a seed round. The WSJ reports that Bessemer Venture Partners led this round; the previous round was led by Crosscut Ventures. The WSJ did not state the company’s valuation at either round.
Part of the Club W pitch includes calling themselves a “global winery” that cuts out all the tiers of the wine biz, including winery, importer, wholesaler, and retailer to offer wines at about $13 each (three a month for $39). Wines have names such as “So this happened…” and “Alchymist noir red blend.” Their web site does not state how they have cracked the perennial wine shipping nut though if the LA-based company is acting as a bonded winery and a licensed importer, the number of states they could ship to could run into the dozens.
In the recent wine venture capital beat, Club W has now soaked up the most funding. Coravin, which stuck its needle into the biotech community, is second. Vivino, the wine app based in Denmark, is running third. Silicon Valley’s Delectable, which closed a $3 million round in May, is fourth.
Lot 18 raised the most venture capital for a wine business post-recession at $44 million. But the company has had layoffs and abandoned the “flash sale” model. In other private equity news, The Wine Advocate sold an controlling stake for reportedly $15 million in late 2012.
Domaine Faiveley of Burgundy has announced the acquisition of Billaud-Simon for their first vineyard purchase in Chablis. The 50-acre estate includes 4 acres of Grand Cru sites in Vaudésir, Les Clos, Les Preuses and Blanchots. They also have 22 acres of premier cru sites. Domaine Faiveley now has 350 acres in Burgundy.
I have always liked Billaud-Simon’s wines, so it is sad to see the end of an era. However, Erwan Faiveley (who chatted with us a few years ago), has really steered S.S. Faiveley in a good direction since taking the helm. So I will look forward to seeing the results of this acquisition.
Have you ever wondered about wine economics–what are the costs of a bottle of wine? While the industry, made up mostly of private companies, often keeps margins shrouded in mystery, I spoke with one vintner who broke down the price of barrels, corks, grapes as well as the three tiers for me. And since that vintner was Bo Barrett of Chateau Montelena and Barrett & Barrett, he offers perspective on a range of (higher-end) wines. I also dig up some info on lower-end wines.
Margins are something that always pique the interest of consumers. So check out the piece over on wine-searcher.com and let us know your thoughts.
Elon Musk is an innovator–probably everyone who’s picked up the business pages recently knows that. Not that I’ve ever driven a Tesla, but I am a huge fan of everything he’s doing. While the gigafactory, the hyperloop and the electronic car that goes 0 – 60 in 5.6 seconds may have gotten most of the attention, he’s also taking on a lot of entrenched interests.
First and foremost is how cars get sold in America. States regulate the sale Read more…