VinTank, the "digital thinktank" for the wine industry, issued a new Pulse Report yesterday on the launch of Vinfolio's Marketplace and its "potentially high" market impact for wineries and importers. While the Marketplace is fundamentally about systematically aggregating fine wine supply from wine collectors and enthusiasts to create a scalable secondary market supply channel, it is equally applicable to the trade.
Marketplace helps the Trade optimize revenues
In particular, the Marketplace may be used by the trade as a low-cost, direct-to-consumer sales channel (via Vinfolio) for both new releases and library wines to optimize revenues. For example, wineries or importers with allocated wines may decide to anonymously sell some portion of their wine at above mailing list or "official" prices when secondary market demand is strong. Or, if facing an oversupply of an item, they can discreetly choose to sell wine at below official prices without fear of negatively impacting their brand position.
Home state of Trade participant doesn't matter
All wine sold through the Marketplace must physically pass through Vinfolio in California. If a winery or importer has no supply already located within California, Vinfolio's CA type 9 importing license provides us with a blanket right to bring wine into California from any jurisdiction within the U.S. (provided we pay CA import excise taxes and the wine is legally registered for sale within the U.S.)
Trade license of Marketplace sellers is not relevant
Anybody can sell using the Vinfolio Marketplace because it is operated as an auction in California. The relevant statute permits wine sold by "any person" and removes all vintage-related limitations on what wine may be sold.
Why consumers benefit from Trade participation
Consumers will have access to more choices, including new releases, wines from closed mailing lists, and potentially bargains from wineries and importers looking to sell excess supply.
Bottom line: As VinTank's report says, "any healthy alternate route to market that causes margin release is favorable. This is the case with the Vinfolio Marketplace." If you're a member of the trade and would like to learn more, please contact trade@vinfolio.com.
