Geoff McFarlane, Xander Oxman and Mark Lynn founded
Club W in 2011 to fill what they saw as a massive void in e-commerce: wine. Of the $35 billion in wine sold in the U.S. annually, only about one percent is sold online versus about 10 percent of all retail sales.
The move has paid off. Club W grew to 11 employees in 2012 on the back of $2 million in revenue since its launch in early 2012. The company will likely hire three more employees to help with customer service and support by mid-2013.
McFarlane, Oxman and Lynn “wanted wine to be much more approachable, to democratize wine,” says Ari Tye Radetsky, Club W's vice president of marketing. “A lot of people have this perception of wine that it's kind of intimidating.”
Targeting a younger, less experienced market, Club W's six curators handpick wines for members based on "Palate Profiles” determined via a six-question online quiz. The company's curators include sommeliers from Denver's Table 6 and Napa Valley's French Laundry.
“These are people who really know wine,” Radetsky says. “We'll get to know your palate and send you wines based on that. Wine isn't about drinking what experts tell you – it's about your personal tastes.”
Club W's winemaking partners are all over the world and are “just as eager to work with us as we are to work with them,” says Radetsky.
Selling wine online is logistically thorny and its weight makes for expensive shipping, but Club W ships to 44 states. Memberships start at $39 for three bottles a month plus shipping.
Radetsky says Club W has largely been angel-funded to date, but the company is interested in additional outside capital. The company is headquartered in Denver with its distribution center in the California Bay Area.
Enjoy this story?
Sign up for free solutions-based reporting in your inbox each week.