Wine Startups Harness The Cloud To Bring Cabernet To The Clueless

Millennials are confused by wine, apparently. The thousands-of-years-old practice of fermenting grapes and putting it into bottles needs to be completely re-imagined for the ever-connected and social-media-obsessed ‘Amazon Prime generation.’ This demographic, loosely characterized as aged 22 – 32, don’t know their Claret from their Beaujolais – but that’s okay, because now there’s an app, an algorithm and a subscription box for that.

“Millennial buyers want to be directly connected to the producer,” says Xander Oxman, Co-Founder and CEO of Club W, which provides a subscription-style delivery service of wines from small-scale producers. Club W, which costs $39 a month, is definitely not your grandmother’s wine club, with an algorithm that matches up taste preferences without the old-world jargon. Wines are curated by a network of ‘tastemakers’ and go for as little as $13 a bottle. Smart phone app users can scan a barcode on the wine bottle to instantly play a video giving you even more tidbits about the wine’s provenance and possible complementary pairings. Club W netted just over $3 million in financing from Los Angeles-based Crosscut Ventures early in 2013.

Oxman plans to expand into bottling wine in 2014, buying up juice on the global market and operating as a winery. He hopes these efforts will reduce distribution costs, allowing users to get “the best value from around the world,” he said.


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