Some of the most interesting people I’ve ever met might be described as restless. They’re not afraid to take a few chances (and maybe make a few mistakes) in an effort to improve things. That’s why I’m excited to introduce an occasional series of posts featuring innovators in the world of wine. Today’s subject: crowdfunding independent winemakers via Naked Wines.
— Stephanie
I’m a multitasker, which means any opportunity to accomplish something—anything, really—while simultaneously drinking wine gets my attention pronto. For the last two years, I’ve been helping to fund start-up wineries as an “investment angel” for Naked Wines. Talk about doing good while drinking wine!
Started in the UK, Naked Wines cuts out the middlemen by giving wine drinkers a way to fund winemakers. It’s like Kickstarter for vintners. As an angel, you pay $40 a month into an account. When you’re ready, you spend that money on wines made by producers located all over the world who are chosen for support by the gang at Naked Wines.
There are lots of options from a variety of winemakers, and Naked usually throws in a free bottle or so each month. No wonder Naked Wines has about 150,000 angels around the world and is growing by 50 percent a year. In fact, there’s a wait list to become an angel right now . (Don’t worry. You can still buy the wines. See the Naked Wines website to find out how.)
Naked Wines is a disruptive force in the wine industry, and I love most anything that tries to shake things up for the better. So I got in touch with their PR guy (and winemaker), Ryan O’Connell, to get the bare facts on Naked. Here’s an edited excerpt of our conversation:
Q: How did the idea of supporting independent winemakers through Naked Wines come to fruition?
A: In 2007, Rowan Gormley [a seasoned wine guy in the UK] wanted to start a wine company that was different. He asked himself how others had become successful in the industry. You had to be big so that you could strong-arm your suppliers [i.e. winemakers] to negotiate low margins, use those savings for sales and marketing and then charge your customers a really high margin so that you could continue to grow. So he set out to turn the tables by taking the risk out for suppliers by managing the sales and marketing of their wines while at the same time creating greater value for their customers by offering wines at a much lower cost. And the way he decided to do this was by getting customers to become “angels” and effectively crowdfund the wine.
Q: How do you choose the winemakers you are going to support?
A: It’s not one size fits all. We want to be flexible enough to fund the most talented, most deserving winemakers who have compelling stories. Our chief winemaker looks for talent, passion, back story and work ethic. Sometimes we fund total up-and-comers like Matt Iaconis who is straight out of UC Davis and super talented. He worked a bit at Antinori, so he gets to use the same fruit and make epic Napa wines. He just needs a custom crush facility, cash and help starting his business. Sometimes we fund winemakers with huge pedigrees who want a break from the traditional model. An example is Daryl Groom, the much lauded former head winemaker for Penfolds Grange, which according to Wine Spectator has produced one of Australia’s most collectible wine.
Q: How do you fund them?
A: It varies winemaker to winemaker, but we identify their obstacles and pain points and then work to make it better. In many instances we start early and buy the grapes and provide production facilities, but in other cases the winemakers already have their own vineyards and wine and really need more help selling and distributing their wines so that they can focus on winemaking.
Q: Once a winemaker has partnered with Naked Wines, what is their typical trajectory?
A: It varies. Some stick around for a long time. We still have winemakers that have been with us since the company launched, for example, Stephen de Wet in South Africa. Others use us as a launching pad into their own brand.
But How Does It Taste?
After reading that interview, you might be saying to yourself, “That sounds really cool, but how is the juice?” That is the rub, my friends. The quality of the wines varies wildly (though it’s worth noting Naked offers a money back guarantee if you don’t like a wine choice). And if you find something you love, chances are it will be gone when you get around to buying more. Because Naked Wines is on a huge growth curve, demand for their wines sometimes outstrips supply. And even though the website you use to order your wine includes recommendations from the crowd, you have no way of knowing what tribe they are in or how their palate matches up to yours.
Here’s how I manage it. I experimented with my first two cases to get a sense of the different winemakers. Now, I tend to re-order from winemakers whose wines I like rather than trying to re-order the specific wine itself.
I’ve also learned to put all of their red wines away for a while—like six months to a year—so that they can age a bit. It delays gratification, but it’s worth it once you open the bottle.
Four Reasons I Get Naked
Despite these annoyances, I have stuck with Naked Wines. Why, you ask?
- The wines are inexpensive, roughly $8 to $15 a bottle.
- Having a wine fund that magically builds up is awesome—like having a 401K but a lot more fun.
- It is convenient to have a case of wine shipped (for free) to the house.
- I like the notion of helping to fund winemakers. And what hack doesn’t want to say she’s an angel investor?
So check it out and let me know which wines and winemakers you like. Cheers!