Do you like wine? wants to make sure that you can pour yourself another glass when you so desire. The company has raised $15 million in Series B funding to advance its platform and direct-to-consumer businesses. The round, led by Beverly Pacific with participation from and others, brings Drinks’ total funding to $25 million, according to the company.
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Founded by veteran entrepreneur and his colleagues in late 2013, Drinks is better known for its businesses Martha Stewart Wine Co. and (acquired by Drinks in 2014). The company also operates what it calls a 鈥減lug and play鈥 platform for digital merchants and brick-and-mortar retailers in the U.S., which it launched in mid-2017.
鈥淲hat we saw with the wine industry and alcohol, in general, is that the players that are existing are entrenched and behave in an archaic fashion,鈥 Brandenberg told 小蓝视频色情网页版 News.聽鈥淭he interaction between the retailers and the marketing community with the wine producers or the distilled spirits producers hasn鈥檛 really changed much either.鈥
With the Drinks platform service, the company has aimed to bring technology to that process by partnering with unlicensed and licensed retailers to 鈥渙ffer wine as an adjunct service to their customers.鈥 In plain English, Drinks facilitates the relationship between alcoholic beverage licensees, like a winery, and retailers鈥揵oth ecommerce-based and brick and mortar鈥揳nd between those retailers and their customers. Think of it like the middle man that could power an online wine delivery service for a company like Sun Basket or Boxed, or even a local store.
On the direct to consumer side, the company has focused on changing customer behavior in the wine industry, much like ecommerce did for individuals who would have normally shopped at a mall. Instead of going to Trader Joe鈥檚 or a local grocery store, consumers would buy online. But what about all of the other players doing that in the wine space? Brandenberg told us that he believes that the subscription approach those companies are taking is not effective because they aim to change more than one aspect of purchasing behavior鈥揵oth moving to online purchasing and to a subscription-based model.
While the company does have a continuity program like , Brandenberg said that subscription program constitutes less than 5 percent of what the company does in total. Instead Drinks focuses on using a matching algorithm to present an appropriate selection of wines from which consumers can choose. The company says on average customers purchase 6 to 12 bottles per package a couple of times a year, and its target consumers are those looking to purchase bottles in the $8 to $28 price range.
鈥淲e don鈥檛 look at squeezing out 2.3 total shipments to a consumer before the attrition kicks in as a metric we need to hit,鈥 Brandenberg explained. 鈥淲e look at a multi-year relationship with them.鈥
For both its direct to consumer and platform services, Drinks features anywhere from 300 to 450 individual products sourced from 150 to 180 individual partners located in the U.S. (mostly California) and globally. With its funding, the company plans to invest heavily in engineering and compliance for its plug and play platform, while focusing on marketing and advertising for its direct to consumer properties.
Drinks has attempted to carve out a space for itself in the direct to consumer space both facilitating connections for existing retailers in the industry while also serving its individual customers. The industry as a whole has been met with funding growth in the past year as our desire for shopping convenience becomes more prominent, and wine certainly is not an exception.
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