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Grape2Glass
Trophée de l’entreprise ambassadricede la France
#LetsgoFrance
December 12, 2017 - San Francisco
Yves Mégret
ETH-X
Alexandre Person
ESSEC
Zoé Le Meur
ESSEC
2
Grape2Glass
3
Low bargaining
power
Low brand control
Lack of time
Lack of resources
Small & Mid-Sized
WineriesWine Amateurs
Limitedaccess
Lack of time
Distributors Retailers
Problems
4
Higher Profitability UnsualWines
Innovative online platform that connects the wineries with consumers
Small & Mid-sized
WineriesWine Amateurs
Solution
5
Existing Product
6
7
Market validation
8
World World
Online
California
Online
DtC
California
Online
DtC
Wine lovers
TAM SAM Target Beachhead
$300
Bn $11
Bn $50
Mn $5
Mn
Market size
9
15% commission from the winery on each bottle
Business model
10
Benefit for the winemaker
Consumer online
experience
Competition
210 interviews in 4 months
Partnerships with 3 wineries
Revenues US $ 435
Ecole42Full Stack Engineering
11
Test Market Target Market
Go to market
Hiroshi Kavin
Strategy: Consumers → Wineries
12
US $ 1.4 Mn
Serie A
Product Development&
Partnerships
Growth&
Expansion
US $ 60K
Pre-Seed
2018
Roadmap
2019 2022
13
“Wine distribution is bankrupt.WineSmith is at your service and I can also rally a few other wineries.
We have nothing to lose”
Jenny Manley BrokawJérôme ThaïClark Smith
Wine maker Consumers
“My husband and I just ordered a couple of bottles and really
enjoyed the experience”
“It's always a pleasure to buy through G2G. I feel close to the
brand and the team”
Testimonials
14
Anyone can find online
the perfect wine
Appendix Outline
Problem
● The wine industry
● Pain Points
● Customer Discovery
Solution
● Concept
● Product
Market Assessment and Go-to-Market
● Market Validation
● Market Size
● Competition
● Criteria
● Differentiation
● US vs France
● Roadmap Q1 2018
● Roadmap 2017-2018
● Our 3 Personas
● Customer Journey
15
Business and Financial Model
● Business Model
● Winery VP
● Funding Need
● Financial Forecasts
Team
● Team - Co-Founders
● Team - New Members
Demonstrated Progress over the semester
● Our Story
● Our Iterations
● Canvas
● Sales
● Our Prototypes
● Our Vision
● Our Challenges
Investors
● Potential Advisors
● KPIs
● Potential Partnerships
● Potential Exits
16
Wineries
Distributors
(30% margin)
I. Club Membership, Tasting Rooms, Winery Website
II. Wine DTC platforms
Consumers
Retailers
(physical or online, 50% margin)
US $50 Bn
2016 wine retail
value in the us
US $ 2.3 Bn
2016 DTC retail
value
$ 18.5 % CAGR
Problem: The US wine industry
17
Problem: Pain Points
Distributors RetailersLow
bargaining
power
Low brand
control
Lack of
time
Lack of
resources
Wineries Wine Amateurs
Lack of time
Limited offer
Problem: Customer Discovery
18
Online survey: 33 answers
210 customer interviews
Discovery
Belong to the G2G community
Explore new wines
Easy
2-day delivery at the doorstep
Fast & Secure payment
Easy-to-use recommendation algorithm
User friendly interface
19
Wineries
Authenticity
Quality
Discovery
Grape2Glass Wine Amateurs
Solution: Concept
Grape2Glass (G2G) is an innovative platform that connects the wineries with Consumers
G2G eases and bolsters Direct to Consumers (DtC) sales channels in the wine business
Marketing
Online brand visibility
Low cost marketing
Customer Acquisition
Profitability
Higher margins
Reduced operational business risks
Online RecommendationsDynamic & personalized algorithm
Online StoreSmart sheets, Interview with winemakers,
Checkout and Delivery to your doorstep
Solution: Product
20
Market and Go-To-Market: Market Validation
21The US Direct to Consumers wine market is booming
G2G first focuses on the US wine marketConsumption and sales are solid and continuously growing
22Sources: Wine Institute, G2G
Market and Go-To-Market: Market Validation
The US Direct to Consumers wine market is boomingThe small and mid-sized wineries take advantage of this opportunity to sell more at a higher margin
23Sources: Wines & Vines Analytics and ShipCompliant
Market and Go-To-Market: Market Validation
Sources: Wines & Vines Analytics and ShipCompliant
The US DtC wine business took off in 2016
24
2015 2016
Volume
In Mn cases a year 4.29 Mn 5.02 Mn
Growth+733 K cases
+17.1%
Value
In Bn US $ $1.97 $2.33
Growth+US $ 363 Mn
+18.5%
Market and Go-To-Market: Market Validation
Sources: Wines & Vines Analytics and ShipCompliant, BW 166
The DtC channel is a much more profitable business than the traditional retail channel
25
Average price per bottle in 2016
Retail: $9.29 vs. DtC: $38.69
Market and Go-To-Market: Market Validation
Sources: Wines & Vines Analytics and ShipCompliant
The Millennials and the Gen Xers would overtake the Baby Boomers in 10 years from now
26
Market and Go-To-Market: Market Validation
Market and Go-To-Market: Market Size
27
$ 300 Bn
Total Available Market
Worldwide wine retail value
$ 50 M
Target Market
- CA online DTC
retail value
- S&M wineries
$ 5 M
Beachhead
- CA online DTC
retail sales value to
“wine lovers”
- Small wineries
(<50k cases/year)
Served Available Market
Worldwide online wine
retail value
$ 11 Bn
28
Benefit for the
winemaker
User friendly
Low
Basic Consumer
online
experience
High
Volume driven
retailers
Specialized retail stores
with e-commerce websites
User friendly online
marketplaces
User friendly online
retailers
Market and Go-To-Market: Competition
Market and Go-To-Market: Competition
29
Grape2Glass Online retailers Online marketplace Online wine stores
Incentive
for the
winemaker
Financial +++ --- + -
Brand control +++ --- + +
Consumer
online
experience
Enjoyable UX +++ + ++ --
Quality/Price +++ - + ++
Grape2Glass competitive advantage
Winery
➔ Best margins on the market
Wine consumers
➔ Ultra personalised experience
Market and Go-To-Market: Criteria
30
Criterion 1 - Proximity with the winemaker
● Online
○ Number of newsletter subscriptions
○ Number of wine Club Memberships
○ Interaction with the winemakers: Chat, Email, Call
○ Video Interview available
● Offline
○ Number of wine tasting a year
○ Number of wine tour a year
○ Location: Physical distance with the winery
Criterion 2 - Online User experience
● Fast
○ Number of clicks before checkout (and delivery)
● Quality-Price Ratio
● Layout
○ User Experience Design: modern, fun, pleasant,
dynamic
● Content
○ Step by step approach: easy to use for beginners and
still consistent knowledge for amateurs
● Delivery
○ Track the status of the shipment online (Amazon is the
world class leader)
○ Price of the delivery services (ratio prices
Bottle/Delivery)
○ Number of days from order to delivery
● Social
○ Peer-to-peer review
Market and Go-To-Market: Differentiation
31
➔ Best margins on the market ➔ An ultra personalised experience
➔ best quality/price ratio
Wineries Wine Amateurs
Apr 18
Market and Go-To-Market: Roadmap Q1 & Q2 2018
32
Concours Petit
Poucet 2018
Customer Interviews
Wineries & Consumers
V2
Launch & Testing
Dec 17
Jan 18
Incubation at
Schoolab in
France
Partnerships
with wineries in
Bordeaux
Feb 18
Partnerships with
delivery services
companies
Series A Fund
Raising Preparation
Recruit 2 full stack
developers + 1 UX
designer (interns)
Entrepreneurial
competitions
March 18
PR & Communication
Campaign
May 18
Customer
Acquisition
June 18
Cumulative Q1 Q2
Revenues: $11K
Costs: $70K
Funding needs: $59K
(Love Money,
Competitions, BPI)
Break Even
Net Income = $0
Customer Discovery
Paris/Bordeaux
Market and Go-To-Market: Roadmap 2018-2022
33
2018 2019 2020 2021 2022
US $ 1.4 Mn
Series A
Closure
Hiring
3 Full Stack Dev
1 UX Designer
5 Sales
1 Marketing Product
1 Digital Officer
V2 Launch
Testing
Iteration
5%
Market Share
Online Wine
Retail
US$ 1 Mn
Annual Revenue
40 K
Wineries on
G2G platform
FY 2022
Revenues: $30.0Mn
COGS: $25.5Mn
Net Income: $2.4 Mn
Market and Go-To-Market: Our 3 Personas (1/3)
34
Market and Go-To-Market: Our 3 Personas (2/3)
35
Market and Go-To-Market: Our 3 Personas (3/3)
36
Market and Go-To-Market: Customer Journey
37
Business and Financial Model: Business model
38
Basic* Premium Platinum
Other revenuesCommission based
15% commission on each bottle
*Currently being tested with 3 wineries
20% commission on each bottle
G2G takes care of compliance
30% commission on each bottle
G2G takes care of compliance &
shipping
Wine club on G2G
Exclusive wine supply for events
Data leverage
3-Tier
39
Volume sold (in cases)
Threshold → DTC is saturated
DTC
3T
With G2G
3T
G2G
= Higher Margin
= Higher controllability
= Higher transparency
High margin
Threshold
Volume sold (in cases)
DTC
Low margin
Added Value for the winery: Optimizing the margin
*G2G survey: threshold @15,000 cases per winery
Business and Financial Model: Wineries Value Added
Business and Financial Model: Funding Need
40
Funding need: US $ 1.4 Mn
Sales & Marketing $ 4 Mn
IT $ 1 Mn
Other $ 0.7 Mn
Total Costs $ 5.7 Mn
Key Metric
CAC: From $100 to $2
Key Metric
LTV : From $30 to $1,500
Revenue $ 47.7 Mn
COGS $ 40.6 Mn
Gross Margin (%) 15%
Gross Margin $ 7.1 Mn
Cumulative sum over the period 2018-2022
Business and Financial Model: Financials Forecasts (1/2)
41
Business and Financial Model: Financials Forecasts (2/2)
42
43
Investor
Relations
Growth
Hacking
Wineries
Network
Business
DevelopmentTechnology Strategy Marketing
Data
AnalystFinance
Team: Cofounders (1/2)
Yves Mégret
ETH-X
Alexandre Person
Centrale Marseille - ESSEC
Zoé Le Meur
ESSEC
Yves Mégret
ETH-X
Alexandre Person
Centrale Marseille - ESSEC
Zoé Le Meur
ESSEC
Team: Cofounders (2/2)
“Inspired by the shift to Direct to
Consumer in the luxury industry, I
enjoy creating innovative go-to-market
strategy and marketing strategy for
wine professionals. I believe in the
quality & authenticity of the product. I
graduated from ESSEC Business
School and studied entrepreneurship in
UC Berkeley.”
“I grew up in the region of Bordeaux, an
exceptional terroir for winemakers in
France. Over the years, my interest to
wine has been flourishing. Today, I make
wine a passion and a business. From
mathematics to business, through
languages and economics, I always
challenge my mind with new areas of
learning and knowledge. Engineer, I
graduated from Ecole Centrale Marseille
and ESSEC Business School.”
“I study Engineering, Innovation, and
Entrepreneurship at l’Ecole Polytechnique
Paris and UC Berkeley. Previously, I
worked for two Venture capital funds and
as a business developer in two startups. I
am a French-Swiss citizen who lived in five
different countries (Germany, France, UK,
Switzerland and US) and I speak French,
English and German. I am passionate
about endurance sports, technology and
innovation.”44
Hiroshi Usui
Ecole 42 Silicon Valley
Anna Vinogradova
General Assembly UX DesignKavin Tjhan
Ecole 42 Silicon Valley
45
Team: New Members
UX DesignFull Stack EngineeringFull Stack Engineering
Portfolio
annavinogradova.com
Demonstrated Progress over the semester: Our story
46
Market discovery
➔ 200 interviews
➔ 3 full immersion
days in wineries
Operations
➔ Partnerships with 3
wineries
➔ First E-commerce
website launched
Customer Acquisition
➔ Online wine community
➔ Physical stand
3 potential customer targets identified Transactions generated!
www.grape2glass.us
Revenues US $ 435
# bottles sold 12
Margin 15%
Demonstrated Progress over the semester: Our iterations
47
1. Marketplace to connect wineries with retailers
2. B2B software for market analysis and sales channels optimization
3. Marketplace to connect wineries independant consultants
4. B2B backend solutions to enable DTC sales“DTC is the way to go”
“Current systems for wine distribution are bankrupt for small producers”
“We have nothing to lose”
Demonstrated Progress over the semester: Our Canvas
Key Partners Key Activities
Key Resources
Value Propositions Customer Relationships Customer
Segments
Channels
Cost Structure Revenue Streams
Distribution partner
* Fedex/UPS
* Startups (deliveroo,
etc.)
Compliance partner
* ShipCompliance
Other
* Coqovins
(recommendation
algorithm)
* Wineaccess
(Sponsor)
* Gonzague Choquet
(Wine expert & advisor)
Wine marketing
- Identify consumer
segments
- Market wine
Build wine maker
community
Wine marketing
- Identify consumer
segments
- Market wine
Build wine maker
community
OutsourcingProduct
development
Marketing Commission
Club
membership
fees
Wine
consultancy
for exclusive
events
Producer
- Higher margin
- Higher control on
brand
- Trust
- Community
Consumer
- A new wine
experience
-> enjoy their wine
purchasing (& tasting)
experience
Producer
- In person
- Email & phone
- Trust relationship
Consumer
- Online (platform,
instagram, mailing
list, etc.)
Wine producers
- S&M wineries
- Produce good
quality wine
Consumer
- Wine amateur,
50s
- Head of
household, 40s
- Urban
millennial, 30s
Online platform (website
+ app)
For producers: physical
meetings
48
Demonstrated Progress over the semester: Sales
49
Demonstrated Progress over the semester: Our Prototypes
50
Demonstrated Progress over the semester: Our Vision
Grape2Glass …
… is the heart of a new distribution system for wine
… gives back to the producers higher margins and control over their brand
... makes wine fun, easy and accessible to everybody
… and makes the world a tastier place ;)
51
52
Be the leader
in wine digital marketing
Demonstrated Progress over the semester: Our Ambition
Demonstrated Progress over the semester: Our Challenges
53
● Crowded market, no clear incentive for the consumer to buy online
● Our challenge: Finding a true differentiation, value proposition to
make our personas come to our platform
54
Investors: Potential Advisors
BPI
Bernard Magrez
Milken Institute
Potential Investors
Schoolab
ESSEC Ventures
33Entrepreneurs
Aidan O’Brien
Michael Claggett
Enrico Bernardo
Gérard Basset
Potential Advisors
55
Investors: KPIs
● Web metrics
○ Total Visits, New Sessions, Channel-Specific Traffic, Bounce Rate, Total Conversions
● Business metrics
○ Revenues, COGS, Gross Margin
● Sales metrics
○ Cost of Acquisition of a Customer/Cost Per Lead, Life Time Value, Retention Rate, Churn Rate
○ Projected ROI: Return On Investment = Average Customer Value - Cost per Lead/Lead to close ratio
56
Investors: Potential Partnerships
FedEx, UPS
Wine Scholar Guild
Napa Valley Wine Academy
WSET
The Institute of Masters of Wine
Court of Master Sommeliers
La Wine Tech
Silicon Vignoble Bordeaux
Ecole du Vin de Bordeaux
57
Investors: Potential Exits
Online Retail PlatformOnline MarketplaceFrench Négociants
