A New Generation of Wine Entrepreneurs

Posted on  | July 1, 2007  
Written by | Ian Griffith

Story by Ian Griffith on 7/1/2007
As the dot com bubble was deflating in 2001, there were few that expected this market correction would be seen as the turning point when the Internet shifted from being a novelty to becoming part of the mainstream. Far from collapsing, it has become clear in the years since 2001 that the Internet is more important than ever and we are left with a landscape that is more stable for Internet startups.

In analyzing why certain companies survived while others failed, Dale Doherty of O'Reilly Associates posited some business principles for the next generation of entrepreneurs. This model was termed Web 2.0 and besides becoming a very successful annual conference it has become the defining model for innovators in the post-bubble Internet.

The Web 2.0 model moves the focus away from the center to the edges of the Internet where the majority of websites exist. It harnesses the collective intelligence of the crowd over the control of specialists. The pioneers of Web 2.0 are businesses like Google, eBay, Wikipedia and Napster that give customers the tools to control their experience. These businesses don't generate the content that adds value but act as intelligent brokers connecting niche groups of customers to each other. Web 2.0 often happens at a smaller scale with cheaper technology so that venture capitalists have been forced to scale down their bets.

Wine 2.0
In as much as Web 2.0 describes a new agenda, a group of wine entrepreneurs has coined the term Wine 2.0 to differentiate them from the early wine websites that “flamed out in spectacular fashion”. Conference co-founder Cornelius Geary describes launching Wine 2.0 in reaction to cynicism from the trade, the media, and investors that “wine on the Internet can be done differently now than 10 years ago.”

In addition to the benefits of cheaper technology and greater adoption of the Internet, a major factor for many of these startups has been the Supreme Court's Granholm decision which has opened new markets for wineries to sell direct to consumers. This issue alone consumed millions during the days of “irrational exuberance” as Wine.com and WineShopper.com attempted to contrive a legal business model for interstate shipping.

This new generation of wine entrepreneurs demonstrates the principles of Web 2.0 as they target niche markets, build their businesses around user generated reviews, and communicate through blogs and podcasts. They include marketing companies that help wineries promote themselves to bloggers and online communities. For retailers, Triggit links bloggers' tasting notes with the inventory of e-commerce sites. CrushPad is a website that lets customers make their own wine by purchasing grapes and specifying the style of their ideal wine. Inertia Beverage links small wineries direct to retailers and restaurants by handling the logistical support required to clear the 3-tier system.

Read more here for ideas on using Consumer Generated Content to promote your Wine Website

As with all start-ups some of these ideas will generate more traction than others, however they can represent some great marketing opportunities for stores looking for links to their products on an e-commerce site.

To learn more about how the Beverage Media can help you Sell Wine Online with a website for your store, contact Ian Griffith at 212 571-3232 x318….

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