Wineshipping LLC of Napa and 24 Seven Enterprises of New York, industry leaders in direct-to-consumer (DTC) wine fulfillment solutions, have merged.
The combined entity will be part of Wineshipping’s parent, DTC Logistics, and creates what a news release called the nation’s largest alcohol beverage DTC logistics provider.
“The new venture is a perfect fit combining complementary capabilities and expertise into a best-in-class partner providing DTC solutions to wine producers, retailers, e-commerce and wholesale companies,” a news release stated.
Through a combined national network of temperature-controlled locations in every region of the country, the new enterprise will have the capability to serve consumers with same-day delivery to major metropolitan areas and one- to two-day ground delivery to all other locations.
Eric Lewis, who joined Wineshipping in January 2020 from recent executive positions at Amazon, Google and Casper, will continue in his role as chief executive officer of DTC Logistics.
“DTC Logistics will drive more winery and e-commerce sales with same day and overnight delivery. By offering the delivery standards that consumers have come to expect, we predict that customers will adapt their beverage alcohol buying behaviors, purchasing more products, more often,” said Lewis.
“Today, more than 50% of most product categories are purchased online and delivered directly to the consumer,” said Lewis.
Moving from brick-and-mortar to mobile devices allows consumers to shop more frequently and easily, he said. “Consumers demand their goods faster and with more visibility. These demand shifts are driving an increased need for speed, accuracy and innovative solutions in the wine and spirits industry where less than 10% of sales are direct to consumer.”
Lewis believes that the growth in DTC shipping for wine and alcohol will increase even after COVID-19 shelter-in-place rules are no longer in effect and will permanently change the marketplace, according to a spokeswoman. Wineshipping saw its business increase by more than 25% in March.
“This combination of companies brings together two very talented like-minded teams that will be dedicated to delivering operational excellence and unsurpassed customer service,” said James Delaney, 24 Seven Enterprises, Inc. founder and CEO.
“Our partnership provides producers and retailers the ability to efficiently scale their DTC businesses. We are pleased to offer the tools we have developed to better manage inventory, accuracy, forecasting and the overall consumer experience.”
The board of directors of the combined company will include Charlie Baxter as chairman, James Delaney, Jason Eckenroth, Eric Lewis as well as Rachel S. Foltz and John von Schlegell of private equity firm, Endeavour Capital.
Founded in 1998, Wineshipping LLC is a direct-to-consumer wine logistics and fulfillment company in North America. The company provides fulfillment, storage and transport services tailored specifically to the wine industry. The Napa office is located at 50 Technology Court.
Founded in 2003, 24 Seven Enterprises, Inc. is a direct-to- consumer alcohol e-commerce third-party logistics company in the United States. 24 Seven Enterprises is the parent company of both Vynapse LLC dba Pack n’ Ship Direct and Vin-Go LLC.
Founded in 1991 Endeavour Capital invests in Western U.S. based, middle-market companies in partnership with founders, family owners and managers.