A fast-growing Southern California startup with ties to the North Coast is taking advantage of a tough wine business environment by aggressively acquiring direct-to-consumer brands and platforms and turning them into viable businesses.
In the process, the founders hope to revolutionize how the industry approaches DTC.
Since its founding just 14 months ago, Full Glass Wine has rapidly expanded its portfolio, acquiring a series of prominent DTC wine platforms, including Winc in June 2023, Wine Insiders in October of the same year, Bright Cellars in March of this year, Splash Wines in June and Scout & Cellar in August.
Also on Sept. 17, an affiliate of Full Glass Wine won a bid in U.S. Bankruptcy Court to acquire the Cameron Hughes and Windsor Vineyards wines, as well as three Vine Club brands, from the defunct Vintage Wine Estates portfolio for $3.2 million. The bid also included an undisclosed amount of bottled wine. The sale was one of eight sales approved by the court on Tuesday.
“We’re focused on making DTC wine better than it’s ever been,” says Neha Kumar, co-founder and chief operating officer of Full Glass Wine, “and a big part of that is integrating all of our companies onto the same tech stack to streamline our operations and better serve our customers.”
By consolidating brands on a shared infrastructure, Full Glass Wine aims to optimize the key “pain points” that have plagued many DTC wine startups, including inventory management, delivery logistics and customer data.
The company has already transitioned Winc, Splash and Bright Cellars to a network of three strategically located fulfillment centers, eliminating costly “zone skipping” and allowing for faster delivery. One of these hubs is operated by third-party logistics provider Wineshipping in Vacaville, strategically located to serve customers on the West Coast.
“We were able to make Wink profitable within 60 days of the acquisition,” Kumar said.
Wink was working with North Coast wine grape growers and wineries to produce its own brands before emerging from bankruptcy in late 2022. Full Glass acquired Wink from Los Angeles-based Amus Brands, which bought the club out of bankruptcy.
But Full Glass Wine’s ambitions go beyond operational improvements: The company is also focused on diversifying its brand portfolio to keep up with fluctuating customer acquisition costs and changing consumer tastes.
The acquisition of Scout & Cellar, a direct-to-consumer wine brand with a passionate following and premium product lineup, represents a strategic shift.
“Scout & Cellar is a slightly more premium wine, with an average bottle price of $30 to $35,” Kumar says. “Having a different marketing channel and customer base is very important to us as we look to the future.”
Similarly, the company acquired Splash wine brand, known for its value-oriented 15- and 18-packs, catering to a specific consumer demographic looking for affordable wine.
“We are really working on understanding the nuances of different demographics and figuring out how to communicate with them effectively,” Kumar said. “This is not just about marketing and branding, it’s about building the right infrastructure to support a great customer experience.”
Moving forward, Full Glass Wine will be looking to the next generation of wine drinkers.
“There’s a lot of negativity in the public eye about young people not drinking wine anymore, but we see a huge opportunity there,” Kumar says. “It’s important that the wine industry is relevant and attractive to them.”
With a growing range of brands, a focus on operational excellence and a strategic vision for the future, Full Glass Wine has established itself as a strong player in the rapidly evolving DTC wine industry. As the company continues its acquisition and brand development, the industry is watching to see how this ambitious startup will reshape the DTC wine market.
Full Glass Wine was founded by Kumar and Luis Amoroso in early 2023. Kumar served as Chief Operating Officer at Create & Cultivate until the company was acquired by Corridor Capital in 2021 for $22 million.
Amoroso has more than 27 years of experience founding alcoholic beverage DTC ventures, including Beverage Solutions, which was acquired by Direct Wine, and technology provider Drinks. Full Glass acquired Wine Insiders from Drinks.
Fullglass projects revenue of $125 million this year and $180 million next year, a 44% annual increase. The company also closed a $14 million Series A round earlier this year.
“We are very excited about the growth we have achieved in a short period of time,” Kumar said. “By leveraging our operational expertise and diversifying our brand offerings, we believe we can continue to deliver significant value to our customers and shareholders.”
Jeff Quackenbush covers wine, construction and real estate and can be reached at jquackenbush@busjrnl.com or 707-521-4256.
