Yesterday’s Reuters announcement that Amazon.com, the world’s biggest online retailer, will be selling wine starting next month hit the industry by storm. I got through to Terry Hall, the communications director for Napa Valley Vintners, late in the day.
SH: What role is NVV playing?
TH: We held a workshop for 29 wineries on Sept. 4 for them to meet the Amazon folks, and we’ll have another one on Sept. 12, with 50 wineries signed up.
Has Amazon been meeting with wineries in other parts of the state?
Well, 26 states are part of the program, based on reciprocity or on in-market pass-through distribution. Amazon’s been talking to wineries up and down the West Coast. They were in San Luis Obispo and were able to go door-to-door, but because of the number of wineries in Napa Valley, we did the workshops as a member service.
Can you tell me which wineries signed up for the workshops?
That’s not for the public record, but it ranges from small family wineries to large wineries.
Have people been expressing skepticism, or excitement, or what?
It’s information-gathering now.
How will the logistics work?
It’s a traditional Amazon direct-to-consumer model. They’ll use New Vine Logistics, the former wineshopper.com, in American Canyon, which has an incredible fulfillment facility. Amazon will store the wine in a temperature-secured location, and then sell it, through orders from the Amazon hub. Amazon makes money because they buy the wine FOB and sell at retail.
Why would a winery sell to Amazon instead of through their own direct-to-consumer program?
They don’t have to worry about staff or packaging. And Amazon’s staff will be able to make recommendations.
Amazon has a wine staff?
They have a group of wine buyers. The head is a guy named Nate Glissmeyer, based in Seattle. He contacted us for the program.
How much quantity is Amazon expected to handle?
It’s sort of infinite. They’re trying to get as many American wines online as possible.