Digital wine club Winc files IPO

Digital wine club Winc is going public, filing an initial public offering on the New York Stock Exchange under the symbol WBEV. The initial public offering price is currently expected to be…

between $14 and $16 per share.

BofA Securities and Canaccord Genuity are acting as joint lead book-running managers for the IPO. Craig-Hallum and Roth Capital Partners are also acting as book-running managers, and Benchmark Company is acting as co-manager. Winc plans to offer 5 million shares of its common stock and will grant the underwriters a 30-day option to purchase up to 750,000 additional shares of its common stock at the public offering price.

According to the S-1 filing, Winc sold more than 430,000 cases of wine in 2020, and the company’s subscriber base stands at approximately 120,000 members as of June 30, 2021.

And in line with higher direct-to-consumer wine and liquor sales during the pandemic lockdown, Winc said it has experienced “a significant increase in DTC demand” since March 2020. Revenue grew by 77.5% from $36.4 million at the end of 2019 to $64.7 million at the end of 2020, and then another 20.4% from $29.2 million over the first six months of 2020 to $35.1 million for the first six months of 2021. Losses narrowed from $8 million at the end of 2019 to $7 million at the end of 2020.

Founded in 2011 and based in Los Angeles, Winc has been at the forefront of a new group of wine clubs that emerged in the past decade as an upgrade to the old guard of programs attached to the likes of credit cards, airlines, and similar sources. To start, rather than just sending six reds or six whites (or some mix of the two) in a single box every few weeks or months, Winc homes in on a prospective member’s palate. Even if the consumer isn’t a wine expert, Winc’s opening questionnaire solicits responses about their tastes in food, spices, and other beverages (such as coffee or tea) to produce a more comprehensive preference profile. From there, members can still make a final decision on which bottles they want or not.

While Winc underscored in the S-1 that it sells across all price points with a special interest in highlighting premium wines (bottles priced between $10 and $30), the Summer Water rosé stood out as one of the company’s bestselling wines annually. Cases of Summer Water sold increased from 29,000 in 2019 to 45,000 in 2020, representing…

 

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