What is better than a cold glass of white wine on a warm summer evening or a glass of red wine in front of the fireplace at Christmas time? Not much.
When it comes to wine, let’s be honest, most people feel the same way (except for this one consulting friend who attended a wine seminar in his spare time and now calls himself #sommelier), in front of the big shelf you get overwhelmed by the selection and get anxiety… When in doubt… go for the prettiest label. When in the restaurant, hmm the cheapest bottle would seem like I’m only going by price and more expensive certainly means better…or not?. This does not have to be this way, the solution: Vivino.
This app has truly changed my life: Better buying decisions without headaches (literally) in the supermarket, direction in the jungle of the wine list in the restaurant, and the recognition of friends and family: “Laura decides the wine, she knows her stuff”.
Wine sales are immense but online pentration is still very small at only 3%. Vivino took advantage of this gap in the market by matching people with wines they really like and making the buying process as easy and convenient as possible.
Vivino is a wine marketplace, which was founded in 2009 in Denmark, and is now headquartered in San Francisco. Their mission is to democratize wine.
The mobile app includes wine ratings, reviews, prices, tasting notes and suggested food pairings, through its unique features such as scanning a label and then providing a matching percentage for the user, the app has already acquired over 60 million users and is actively selling wine in 17 global markets. The app works with over 250 thousand wineries and has received over 250 million reviews on their wines. The monthly active user base is on-par with major delivery platforms such as doordash. 95% of Vivino’s user base is reported to have been organic, with no paid marketing.
How it works.
Find As mentioned earlier, almost any wine, whether in the store, restaurant or wherever can be scanned by taking a photo of the label, alternatively the name can be entered. Vivino then shows the user a personal match probability (based on the user’s previous ratings), as well as an average rating of all Vivino users in stars, comments from them, and descriptions and statistics about the wine. The recommendation algorithm (similar to Netflix) always recommends new wines based on past ratings and purchases.
Remember The user can then rate the wine and save it, place it in a virtual cellar (Wish List) or order it directly from the winemaker.
Share Furthermore, the platform allows users to network with other users or friends, sharing reviews, comments and photos.
In addition, Vivino offers features such as curated local bestsellers or the Vivino Wine Style Awards to keep recommending new wines to users. For particularly loyal users, there is also a subscription service (the Wine Club) that sends six wines every six weeks. Vivino also has a separate platform for winemakers, where they can enter detailed information about their wines and receive personalized insights.
Lets talk about money.
The App is free for both the sellers and the users of the app. Vivino’s role is to curate the individual wines and to manage the payment process. The wines themselves are sold and distruted by the winemakers. But how do you earn money in the process? Vivino as a marketplace has different revenue streams, on the one hand marketing fees (enabled by reaching a larger target group for the winemakers, the promotion of the wines, as well as the educating part), through advertising on the platform, through the sale of aggregated data to other businesses, as well as subscription services (vivino wine club).
The online wine business is booming. Especially due to the Covid pandemic, Vivino could more than double its sales in 2020. This value is also recognized by investors, currently Bloomberg assumes a valuation of around 800 million dollars. Until now the app recognizes wines and sparkling wines, but I personally see further potential for other types of alcohol, such as whiskey or gin. How do you see that? How can Vivino continue to grow?
Medium.com, Vivino.com, Bloomberg.com