Consolidation In The Wine Industry – This Acquisitive Player Has Added To Its Offerings Ahead Of Q4's Gifting Season As It Aims For Market Leadership

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Splash Wines is making strides in the wine industry, aiming to become a leader and revolutionize the market. The company is adopting a strategy of acquiring key competitors, which will ultimately solidify its position as a dominant force in the industry. The market, which is currently fragmented with no clear leader, provides an opportune space for Splash Wines to consolidate its presence and emerge as a frontrunner.

Founded in 2014, Splash Wines is a family business with three generations of experience in the wine industry. The company has been at the forefront of the internet wine industry for the past 15 years, which has allowed it to establish itself as a prominent player in the D2C space. By directly selling to consumers, the company is able to eliminate the need for middlemen and offer wines at competitive prices. 

With great TrustPilot ratings and a customer base of over 800,000, Splash Wines has been shown to prioritize customer satisfaction and loyalty. The company focuses on exceptional customer service – it does not rely on chatbots or automated messages when talking to customers. The company has also experienced notable growth over the past few years, tripling revenue in just three years. In 2022, their revenue reached $30 million, and they have set the ambitious goal to reach $50 million by 2025.

In their first major move towards market consolidation, Splash Wines successfully acquired Wine Awesomeness last year. With this acquisition, the company not only added $1.5 million in annual revenue but also expanded its reach into new markets, presenting fresh opportunities for growth and innovation.

Building upon this success, Splash Wines recently announced the acquisition of Vine Oh!, a company specializing in wine gifting. This strategic partnership further enhances Splash's offerings by tapping into the lucrative gift subscription box space. With Vine Oh!'s expertise and connections, Splash can leverage its consumer-facing approach and integrate it with its own operations, bolstering areas where it wants to expand its offering, such as ready-made gifting. This acquisition opens up new avenues for synergy and allows Splash to provide customers with access to quality wines at competitive prices while enhancing their gifting experience.

Another notable acquisition by the company is JA Imports. As an importer, national wholesaler and holder of a California Winery License, JA Imports brings considerable value to Splash Wines. By acquiring JA Imports, Splash Wines strengthens its compliance position and gains the flexibility to expand its production facilities within the United States, signaling a commitment to domestic growth in the upcoming year. The acquisition of JA Imports also unlocks various partnership opportunities, including potential collaborations with QVC – among other partners – adding even more value to Splash's expanding network of alliances.

These acquisitions represent significant milestones in Splash's journey towards becoming an industry leader. By strategically integrating companies like Wine Awesomeness, Vine Oh! and JA Imports into their operations, Splash aims to unlock new synergies, tap into untapped markets and elevate its offerings to a wider customer base. The company's vision for growth and innovation is further emphasized by its commitment to making acquisitions a key focus of its Start Engine raise as it continues to build momentum and solidify its presence within the industry.

Splash Wines is seemingly trailblazing a path in the wine industry by consolidating the market and positioning itself as a leading player through strategic acquisitions. Each acquisition contributes unique value to the company, whether it be in terms of revenue generation, market expansion, compliance strength or the ability to unlock key partnerships. As Splash Wines integrates these companies into its operations, it will be able to further solidify its position as an innovative force in the wine industry.

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Featured photo by Hermes Rivera on Unsplash.

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