Home » Businesses » eCommerce Brand | Wine Storage Solutions | Strong Margin Business | Patents & Trademarks in Place | $287 AOV | New Products Ready to Launch
eCommerce Brand | Wine Storage Solutions | Strong Margin Business | Patents & Trademarks in Place | $287 AOV | New Products Ready to Launch
Website Closers® presents a global leader in the lucrative field of Premium Wine Storage solutions. The company has nearly 8 years of experience marketing wine racks made of high-quality timber and designed to last a lifetime.
With the global Wine Cabinet Market now valued at $4.6 million and projected to reach $7.4 million by 2032, the company has quickly become a leader in this field, with sales generated on a global basis to the U.S., UK, and Australia, among other countries. The brand has an Average Order Value of $287 and a rising repeat order rate.
This is a highly turnkey operation. Current ownership works no more than 5 hours per week operating this business, while an experienced team is in place to manage customer service, design new products, and sales. A new owner inherits the company’s strong brand recognition, solid recurring revenue, and reputation for high quality SKUs that includes the use of sustainable material in the crafting of its wine racks. Orders come in steadily throughout the year with peak sales in the holidays since this price point and niche product line make the perfect holiday gift.
The company has both DTC and B2B customers, along with patents and trademarks on their products in six countries. With new products ready to be launched, they are expected to make a serious push into new global markets soon.
This business represents a clear opportunity for a U.S. Buyer to acquire this company and scale it quickly by opening new 3PL facilities in the various countries they market to for faster deliveries, continuing to expand the product line to introduce new and innovative products, and starting an influencer marketing campaign on the company’s social media platforms.
Business Broker Takeaway
Our analysis of this business shows that the value propositions present are strong for a first-time buyer looking to get into the online space. We are excited about this business for 3 important reasons:
1. Sustainability. This brand has developed a strong relationship with consumers who put a high emphasis on environmental protection and sustainability. All its wine racks are made using timber from a sustainably managed forest in New Zealand, considered the most responsible and sustainable timber available. As a result, everything this company does, from manufacturing to production to final delivery, produces no C02 emissions, a major contribution to the environment that customers have come to appreciate. This is a key reason, along with the high quality of its products, that sales continue to grow so quickly.
2. Exclusive Supplier Relationships. A significant benefit this company enjoys is its Exclusive Distribution Agreements with its suppliers, with their main supplier providing them with the lowest available prices, giving this brand a terrific competitive edge that they can pass on to consumers when it comes to pricing. The pricing they pay has also enabled this brand to boost its margins by expanding into new markets, including the U.S. and Canada. Their main supplier only produces products manufactured directly for them, so all products are sold under their brand name. Their supplier also maintains a large production capacity and is capable of ramping up its production for them very quickly.
3. Easy to Scale Operations. There are clear options for scaling this business. One is to further promote sales opportunities in the U.S. There are huge scale opportunities here and in Canada, where the company is already enjoying rising profits. Along with South Africa, these are three nations where there is massive sales potential and limited competition. The company could also continue to focus on growing its B2B sales to wholesalers and brick-and-mortar retailers in each of the countries they’re now shipping products to, and to expand opportunities for boosting the organic traffic to their website, including through expanded social media marketing and the launch of an influencer marketing campaign on those platforms.
The Company
Launched 7 years ago, the company has focused from the start on trying to provide this vertical with superior products that enable them to stand out. This approach has worked, with the company maintaining a large customer base with high levels of repeat purchases.
The brand continues to diversify its products, which now include wall-mounted wine racks, wine cubes, and traditional wine racks, among others. Their products attract healthy sales throughout the year, with major peaks in the weeks leading up to Father’s Day and Christmas, times when their products have become popular gift items.
The company also continues to create new products, with several in the design stage and nearing the point when they can be launched, giving the company major opportunities for upsells and cross-sells to its existing customer base.
The company began sales in the UK in December 2021 and has enjoyed impressive growth since then, while its US store opened in April 2021 and has seen a serious uptick in sales since the company increased its PPC ad spend there.
The company’s formula for offering superior products with low production costs is definitely maximizing profit margins. This has enabled the brand to dominate every market they have entered since first launching. They are now a recognized industry leader for everything related to Wine Racking.
Their digital marketing campaigns have contributed to their growth. While most of their sales have come from their PPC ad campaigns on Google and Facebook, a rising percentage comes from the organic traffic they generate that is bringing 14,700+ unique monthly visitors to their website. That includes 17,000+ followers on Instagram, with regular posts on that site and Facebook, and an informative blog on the company’s website as part of its SEO strategy. The company has also invested $10,000+ in professional photography and videography for future marketing efforts.
There is enormous growth potential for this brand, which operates in a specialized vertical where its products stand out for design, high-quality craftsmanship, and sustainability. Having successfully brought in new sales in the UK and US, and having cultivated a growing B2B base, the company is ideally positioned to grow by leaps and bounds under the ownership of an ambitious investor.
