New Vine Logistics: Accounts & Alternatives
Yesterday the wine industry woke up to the news that one of its key shipping/compliance/inventory management service firms, New Vine, went under. The disruptions this is causing among its many winery and retail clients, as well as consumers who receive shipments of wine via this operation, are significant.
It appears that New Vine's demise was caused by the same thing that causes most other companies to shut down: Financial Crisis. Though I suspect the details of that financial crisis in all its gory details will eventually come out, there has been a good deal of reporting on the issue. Below are links to various new stories and blog along with links to other similar wine service businesses that those affected by the end of New Vine might want to consider.
NEWS ACCOUNTS
UNDEAD: Suitors Sparring Over New Vine's Bones
Lew Perdue's Wine Industry Insight
DEAD! – New Vine Withers After Amazon Bolts & Investors Pull Plug
Lew Perdue's Wine Industry Insight
New Vine Logistics Suspends Operations
Santa Rosa Press Democrat
New Vine Logistics On Hold: Company Suspends Operations, Seeks Capital
Wines & Vines Magazine
New Vine Logistics Suspends Business Operations
San Francisco Business Times
New Vine Collapses; Amazon Deal Unlikely
Wine & Spirits Daily
Shipping Competitors Field Queries from New Vine Customers
North Bay Business Journal
Wine Shipper Halts Orders Jarring Industry
Wall Street Journal (subscription needed)
Compli Offers Free Services To New Vine Customers For May Orders
Wine Business Monthly
BLOGS
New Vine Logistics Suspends Operations
Winery Website Report
New Vine Logistic Aftermath: Questions
PinotBlogger
Wine Logistics Company's Failure Puts Amazon.com Wine Future at Risk
Luxist
New Vine's Demise & The Future of Direct Shipping
Acan Media
Crisis Communications & New Vine Logistics
Caveman Wines
A Canary in the California Wine Cellar
Vinography
Amazon's Wine Business Partner Runs Into Trouble
TechFlash
Notes on what's now and Why Lions Eat Their Young
The Good Grape
ALTERNATIVE SHIPPING & LOGISTICS SOLUTIONS
Bacchus Fulfillment
Copperpeak Logistics
Pack & Ship Direct
Wine Shipping.com
WTN Services
All Ways Cool
Lew Perdue has an excellent post-mortem: http://wineindustryinsight.com/?p=3150
And GoodGrape has the conspiracy theory: http://goodgrape.com/index.php/articles/comments/notes_on_whats_now_and_why_lions_eat_their_young/
Major disruption and heaps of opportunity.
NVL was trying to pilot the dangerous waters of wine shipping compliance, which is filled with as many pirates as the coast of Somalia.
Despite the financial mismanagement that clearly occurred at NVL, I have to mention that when I was working on a small side project last year, NVL took several hours of time with me. Explaining their entire process in minute detail and offering every assistance even though there was little chance of them making much a profit off of that particular project.
In contrast, one of their competitors basically told me they couldn’t be bothered with a project that size.
Cheers
Amy
Does anyone think that it may also have to do with their expansion at a time when it seemed like a good idea and then the economy crashed? I mean, they are a fulfillment center and if wineries aren’t shipping wine, then they don’t get paid. Of course, the expansion may have had to do with Amazon’s direct to consumer wine selling idea, but it’s simple…we have been riding the credit wagon for some time. It’s over. This is not going to be the only business to go under…
Has anybody seen anything official from Amazon on this?
Sorry – I pressed the post button too soon. Hate it when that happens.
Of course the economy is a huge factor.
I heard it was investors, not creditors, that pulled the plug.
wonders if Amazon will come up with it’s own in-house fulfillment solution.
Is it at all possible that part of the demise of this company could result from their overestimation of the demand for directly-shipped wine?
I think this is further proof that almost everybody would just prefer to go to a good, knowledgeable wine store and bring their wine home with them in their hot little hands.
I realize that those wines are forever tainted by the fact that they were most likely bought from a wholesale distributor,
but maybe 99.99% of people don’t object to that fact.
Food for thought, but maybe nobody’s hungry.
Scott:
I dont’ think there is any question that the vast majority of wine is purchased out of a store and the vast majority of people want to make their purchases and get them home with them right away.
Nor do I think there is any taint in this due to the fact that the wines were delivered to the stores either by wholesalers or directly by wineries.
However, direct shipment of wine has been growing at a pretty good clip over the past few years for any number of reasons, though the volume certainly didn’t come close to what was sold in brick and mortar stores.
I think the recession hit hard the direct shipment market as the majority of wine shipped directed tended to be more expensive than the average bottle of wine and it’s this sector of the wine market that direct shippers and logistics companies like new vine deal most often in.
As to what’s objected to, I dont know anyone anywhere who has ever objected to the idea of wholesalers and distributors bringing wines to market and servicing retail stores. There are some, however, who object to the state MANDATE, that wholesalers be the only ones through which wine can eventually flow to consumers, be it direct or via stores.
Put another way, you caught me in a hungry mood.
Tom,
That is, I think, a valuable clarification you just made regarding your stance on distributors. I have had the distinct impression since beginning to read your blog that you have a deep-seated and very personal dislike of the fact that distributors exist at all, and that you’d be happy to see them come to an unhappy end as soon as possible.
Especially when you mount the soapbox in objection to the Wine Wholesale Industry’s claims that they provide a valuable and necessary link in the supply chain for consumers, I have had the impression that you’d prefer they dry up and blow away. I could go back and look up the adjectives from previous posts (evil and stupid come to mind) you’ve used to describe distributors; but now that you’ve set the record straight – no need.
I appreciate your reassessment of this question.
Maybe that vacation was just the ticket.
Scott,
If distributors were to “dry up and blow away”, the majority of wine would not get to market. I love the work distributors do. We need distributors. Wine is heavy. BUT…not everyone needs or wants to use distributors. Unfortunately most state’s mandate their use, whether or not they are necessary to suppliers, retailers, restaurants or consumers.
Now, you and I both understand why the dwindling number of distributors spend so much time, money and effort defending and protecting this unnecessary government subsidy to distributors. By long time beef is with the disreputable way in which distributors make their defense of government subsidy at the expense of the health of the wine industry and the good of the wine consumer.
Yet just another reason for small wineries to go direct to consumers without the help of large corporate distribution centers or mass media outlets like Amazon. If you can’t sell or drink every bottle you produce, maybe you’re producing too much of it…
Adjust your price point to the amount of direct marketing you’re willing to take on (and making a small profit on) and support that marketing. Besides, consumers would rather engage you as the grower or winemaker or owner than corporate sales guy. You’ll make bigger sales and retain them as a club member.
The business model had very thin margins and was expensive to run. Coupled with questionable leadership and you have a ship taking on water.
Has anyone considered that maybe they were just over-sized for the business they were in?
As I heard from one fulfillment house I work with, did they really picture themselves in the fulfillment business?
They were a very expensive solution to the fulfillemt process
Another sign of the times. Its another day and another business going under. Our prayers to the families affected.
I love businesses that post about gourmet products. Gourmet food items are quickly becoming a chosen purchase of wealthy families with internet gourmet stores. Upscale restaurants have also adhered to more gourmet food buying from ecommerce food stores as well. Gourmet food purchased through the internet will go on to grow.