A rapidly growing startup from Southern California, with connections to the North Coast, is actively seizing the opportunity to acquire and rejuvenate direct-to-consumer wine brands and platforms, adapting them into profitable businesses.

The company’s founders are aiming to transform the direct-to-consumer approach within the wine industry.

Established just 14 months ago, Full Glass Wine Co. has quickly enlarged its brand collection, acquiring several well-known DTC wine platforms: Winc in June 2023, Wine Insiders in October, Bright Cellars in March of this year, Splash Wines in June, and Scout & Cellar in August.

On September 17, an affiliate of Full Glass Wine successfully secured a $3.2 million bid at a U.S. Bankruptcy Court auction for Cameron Hughes and Windsor Vineyards wines, along with the Vinesse club – all formerly belonging to the now-defunct Vintage Wine Estates. This acquisition also includes a certain quantity of bottled wine. The court approved the sale among others on Tuesday.

“We’re really focused on improving wine DTC, beyond what’s been done before,” said Neha Kumar, cofounder and chief operating officer of Full Glass Wine. “A big part of that is getting all these companies on the same tech stack to streamline operations and better serve customers.”

By consolidating brands onto shared infrastructure, Full Glass Wine aims to optimize inventory management, shipping logistics, and customer data — key “pain points” that have plagued many DTC wine startups.

The company has already moved Winc, Splash, and Bright Cellars to a network of three strategically located fulfillment centers, reducing costly “zone skipping” and enabling faster deliveries. One of those hubs is operated by third-party logistics provider Wineshipping in Vacaville, strategically positioned to serve West Coast customers.

“We were able to get Winc profitable within 60 days of acquiring it,” Kumar said.

Before Winc fell into bankruptcy in late 2022, it had collaborated with North Coast wine grape growers and wineries to develop its unique brands. Full Glass acquired Winc from Los Angeles-based Amass Brands, which had purchased the club following its bankruptcy.

However, Full Glass Wine is not solely focused on operational enhancements. The firm is keen on broadening its brand assortment to mitigate the risks associated with fluctuating customer acquisition costs and the changing tastes of consumers.

Its purchase of Scout & Cellar, a direct-selling wine brand known for its devoted customer base and upscale products, signifies a tactical pivot.

“Scout & Cellar targets a slightly more upscale market, with an average bottle price of about $30-$35,” Kumar stated. “This variety in marketing channels and customer demographics is crucial for our future plans.”

Moreover, the acquisition of the Splash wine brand, noted for its budget-friendly wine packages in quantities of 15 and 18 bottles, is geared towards a particular market segment that prioritizes affordable and approachable wine options.

“Our goal is to deeply understand the varying preferences of different customer groups and to engage with them effectively,” Kumar explained. “It extends beyond mere marketing and branding; it involves constructing a solid framework to ensure an exceptional customer experience.”

Moving forward, Full Glass Wine is focusing its efforts on appealing to the emerging demographic of wine enthusiasts.

“There is a prevailing skepticism about wine consumption among the youth, yet we perceive significant potential,” Kumar remarked. “Our strategy is centered on revitalizing the wine industry and making it appealing to this upcoming demographic.”

With its expanding portfolio of brands, dedication to operational superiority, and a forward-thinking strategy, Full Glass Wine is establishing itself as a key contender in the dynamic direct-to-consumer (DTC) wine sector. As it continues to expand through acquisitions and brand development, observers within the industry are keenly tracking how this emerging company will impact the DTC wine scene.

Founded in early 2023 by Kumar and Louis Amoroso, Full Glass Wine made its mark quickly. Kumar previously served as the chief operating officer of Create & Cultivate, which was sold to Corridor Capital for $22 million in 2021.

Having a background of more than 27 years in founding DTC ventures in the beverage alcohol sector, Amoroso’s ventures include Beverage Solutions, which was acquired by Direct Wine, and a tech provider named Drinks, from which Full Glass acquired Wine Insiders.

This year, Full Glass is on track to achieve revenues of $125 million and anticipates a growth to $180 million the following year, marking a 44% increase annually. Additionally, the company successfully secured a $14 million series A funding round earlier this year.

“We’re really excited about the growth we’ve achieved in such a short period of time,” Kumar said. “By leveraging our operational expertise and diversifying our brand offerings, we believe we can continue to drive significant value for our customers and shareholders.”

Jeff Quackenbush covers wine, construction and real estate. Reach him at jquackenbush@busjrnl.com or 707-521-4256.