Right now there are 44 Alcoholic Beverage Companies raising across the various Reg CF Portals and Platforms. This is only growing each and every day. Alcohol has always been known to be a solid investment, especially when the economy dips and times are tough. And as true as Fargo, ND is cold in the winter- the Alcohol Industry is booming, especially the online beverage sector.
Honestly- due to age old regulations it has traditionally been difficult to sell alcohol online. But with scrappy entrepreneurs, ecomm exploding and some easing on legislation the door is starting to bust wide open in this sector.
Let's take a deeper look at a specific part of the alcoholic beverage sector.
I’m talking about one of the oldest types of alcohol in the world.
You know it, most of you love it, and you’d be hard pressed to live without it.
See what I did there…
In case you couldn’t tell by my horrible Dad Joke, I’m talking about the Wine industry!
The global wine market was valued at USD 417.5 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2021 to 2028. While this isn’t some groundbreaking number that you might see in other industries. I prefer this steady, positive growth when evaluating industries for potential investment. It is important to balance your portfolio with industries that have huge, exponential growth and with industries that have steady consistent momentum. Wine definitely falls into the category of steady, consistent momentum.
Source: Grand View Research
When you dig a little deeper into the wine sector, you can see that there is some major potential within the Direct to Consumer Wine Sales sector. Direct to Consumer refers to companies that ship directly from a winery to a consumer's home for personal use. This often equates to lower prices for consumers and more customers for wineries.
According to the Direct to Consumer Wine Shipping Report, The Direct to Consumer sales channel grew by an amazing 27% in 2020 when compared to 2019. While the 2021 report at least one writer at Forbes believes that 2021 could be a game changing year for Direct to Consumer Wine companies. Check out that article here.
This positive momentum has me constantly looking for new startups and investment opportunities within the Direct to Consumer Wine industry.
Recently, I spent some time with Jacob Ner David, the co-founder of Vinsent. An online vineyard to consumer platform. You can check out that interview HERE. As someone who has their ear to the ground in the private capital markets- I’m very intrigued how alcohol companies like Vinsent are going to disrupt the status quo and change the way the consumer experiences purchasing alcohol.
Something very interesting to keep an eye on is how companies like Vinsent aren’t just bringing the vineyard directly to the people- they are beginning to become storytellers. Through the power of blockchain technology and the vast amount of content being created, a consumer can not only enjoy the wine itself, but can also follow the journey of that particular bottle of wine with some really exciting, revolutionary e-commerce technology.
If you want to learn more about Vinsent (which recently switched portals and is now raising on Wefunder), you can view their Exclusive Friends Invest First campaign page here.
For those of you who have been with us for a while you know that the Friends Invest First portion of a campaign is where friends, family, and customers are allowed to invest before the general public.
Why is this beneficial? Early investors have a better shot at getting early bird perks, which can include better financial terms. Investing early can also help the company raise money faster. The Friends Invest First portion of the campaign is normally reserved for those who have close relationships with the founders, but as a StartupWire reader, we are excited to share this exclusive opportunity for you to learn more about Vinsent prior to the public launch of their campaign.
Overall, I am excited about the growth of the alcoholic beverage industry and know that there is some serious potential for investors and consumers to benefit from the incredible work happening in this sector.
What do you think about the wine sector? Is this a sector that you’ve invested in? Do you think that the future of the wine industry is poised for massive growth because of e-commerce? Let me know in the comments.