Innovative Startup Sets Out to Revolutionize the Complex Direct-to-Consumer Wine Sales Industry Chris Lehoux, September 25, 2024 A rapidly expanding startup based in Southern California with connections to the North Coast is seizing the challenges faced by the wine industry to aggressively acquire and revitalize direct-to-consumer brands and platforms. The founders aim to overhaul how the wine industry manages DTC operations through their innovative approach. Launched just 14 months ago, Full Glass Wine Co. has quickly grown its collection, acquiring several well-known DTC wine platforms: Winc in June 2023, Wine Insiders in October, Bright Cellars in March of this year, Splash Wines in June, and Scout & Cellar in August. Moreover, an associated entity of Full Glass Wine successfully secured a $3.2 million offer on September 17 in U.S. Bankruptcy Court for three brands from the bankrupt Vintage Wine Estates: Cameron Hughes and Windsor Vineyards wines, and the Vinesse club, including an unspecified quantity of bottled wine. This transaction was among eight approved by the court that Tuesday. “We’re really focused on improving wine DTC, beyond what’s been done before,” said Neha Kumar, cofounder and chief operating officer of Full Glass Wine. “A big part of that is getting all these companies on the same tech stack to streamline operations and better serve customers.” By consolidating brands onto shared infrastructure, Full Glass Wine aims to optimize inventory management, shipping logistics, and customer data — key “pain points” that have plagued many DTC wine startups. The company has already moved Winc, Splash, and Bright Cellars to a network of three strategically located fulfillment centers, reducing costly “zone skipping” and enabling faster deliveries. One of those hubs is operated by third-party logistics provider Wineshipping in Vacaville, strategically positioned to serve West Coast customers. “We were able to get Winc profitable within 60 days of acquiring it,” Kumar said. Before Winc fell into bankruptcy in late 2022, it had collaborated with North Coast wine grape growers and wineries to create its own branded wines. Full Glass acquired Winc from Los Angeles-based Amass Brands, which had bought the club following its bankruptcy. However, Full Glass Wine aims to do more than just enhance operations. The company is also aiming to broaden its brand portfolio to protect against the unpredictable costs of acquiring customers and changing tastes among consumers. Its acquisition of Scout & Cellar, a direct-to-consumer wine brand known for its devoted customer base and upscale products, marks a significant shift in strategy. “Scout & Cellar is somewhat more upscale, with an average bottle price between $30 and $35,” explained Kumar. “Accessing a different marketing channel and customer demographic is crucial for us as we plan for the future.” Similarly, the acquisition of the Splash wine label, known for its budget-friendly 15- and 18-bottle packages, is aimed at a specific market segment that prefers economical, readily available wines. “We’re really aiming to grasp the subtle differences among various demographic groups and how to engage with them effectively,” Kumar stated. “It extends beyond marketing and branding—it’s about establishing the necessary infrastructure for an excellent customer experience.” Looking forward, Full Glass Wine is focusing on attracting the upcoming generation of wine enthusiasts. “There’s a lot of negative sentiment about young individuals not being interested in wine, yet we see significant potential,” Kumar remarked. “The goal is to make the industry appealing and vibrant for them.” With a growing stable of brands, a focus on operational excellence, and a strategic vision for the future, Full Glass Wine is positioning itself as a formidable player in the rapidly evolving DTC wine landscape. As the company continues its acquisition spree and brand development, the industry will be watching closely to see how this ambitious upstart reshapes the direct-to-consumer wine market. Full Glass Wine was founded in early 2023 by Kumar and Louis Amoroso. Kumar had been chief operating officer of Create & Cultivate until its acquisition by Corridor Capital for $22 million in 2021. Amoroso for over 27 years helped found beverage alcohol DTC ventures including Beverage Solutions, acquired by Direct Wine, and tech provider Drinks. Full Glass acquired Wine Insiders from Drinks. Full Glass is projecting revenues of $125 million this year and $180 million next year, a 44% annual increase. The company also closed a $14 million series A round of funding earlier this year. “We’re really excited about the growth we’ve achieved in such a short period of time,” Kumar said. “By leveraging our operational expertise and diversifying our brand offerings, we believe we can continue to drive significant value for our customers and shareholders.” Jeff Quackenbush covers wine, construction and real estate. Reach him at jquackenbush@busjrnl.com or 707-521-4256. About the Author: Chris Lehoux Meet Chris Lehoux, an experienced wine connoisseur and dedicated blogger with a deep passion for all things wine-related. With years of expertise in the industry, Chris shares insightful wine reviews, valuable wine tasting tips, expert pairing advice, and captivating tales of vineyard visits. Join Chris on a journey through the world of wine, where every sip is an adventure waiting to be savored! Wine