Boxed wine startups are trying to build viable DTC businesses

Friday, 25 August, 2023
Modern Retail, Gabriela Barkho
Boxed wine startups are trying to learn from the previous mistakes of DTC wine businesses.

Digital wine clubs have struggled to maintain the momentum gained from at-home drinking during the onset of the pandemic. Winc, which invested heavily in private labels and its tech platform, filed for bankruptcy last December — less than a year after going public. SommSelect, an online wine club founded in 2014, also filed for bankruptcy that same month.

Now, more boxed wine startups are trying to make a go at building a viable online business. The boxed format is not only cheaper than per-bottle prices but also offers conveniences like longer shelf life and less waste. Founders of boxed wine businesses say these advantages also make production and fulfillment — especially online — much easier than selling wine bottles. Coming off the at-home habits the pandemic helped create, a new class of boxed wine startups say they’re better equipped to do digital wine sales. Founders of new brands like Juliet Wine, Boxt and Gratsi say they’re offering a better bang for buck, more sophisticated wines than past boxed varieties and more sustainable packaging.

Much of this recent success is due to a slowly-changing perception shift. From the Tank is a boxed wine brand by wine importer Jenny & François Selections that’s been around since the early aughts. The brand was one of the earliest examples of upstart players disrupting the stagnant category, which at the time was dominated by corporate names like Franzia, Bota and Black Box. “Things have developed a lot since we launched,” said Jenny & François co-founder Jenny Lefcourt. “It’s a format I really believe in.”

Lefcourt explained that while boxed wine’s reputation has improved over the past decade, the reasons behind its demand have changed. For instance, she said, “with the economy the way it is this year, people are looking for less expensive options.” At the same time, she noted that wine production has become more expensive following a glass bottle shortage in the past couple of years.

As a result, boxed wine is gaining traction among more serious wine drinkers — including millennials and Gen Z. “Now it’s less about having to convince retailers to carry boxed wine, and more so competing with the growing number of brands on the shelf,” Lefcourt said.

The growing trend hasn’t gone unnoticed by the industry, as evidenced by a slew of boxed newcomers.

Boxed wine startup Juliet Wine launched in summer of 2022 with three California varietals, Pinot Noir, Sauvignon Blanc and Dry Rosé sold at $35 per box. Co-founders Allison Luvera and Lauren De Niro Pipher said they consciously set out to create wine in a box due to several factors. For one, the company says the packaging creates 84% less waste than glass bottles and helps the wine stay fresh for up to six weeks after opening.

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