Last week, online wine retailer Vinomofo announced its acquisition of fellow Melbourne business Revel, which runs several popular food and drink events, including Pinot Palooza and Mould Cheese Festival.
The move will enable Vinomofo to diversify its revenue stream beyond simply selling wine to consumers as it gears up for a potential IPO. Earlier this year, the retailer reportedly tapped investment bank Jardan to help it prepare for a public float, and brought in executive chairman Paul Edgington as CEO, while co-founder Justin Dry moved into the newly created chief entrepreneur position.
Alcohol and events are a natural pairing, and recent years have seen major players launching immersive experiences, from multi-million-dollar visitor centres, such as Johnnie Walker’s new home in Edinburgh, to hotels, such as Veuve Clicquot’s resort in Byron Bay.
We asked Edgington about the opportunity he sees in events, and how he plans to integrate Revel into the Vinomofo business.
Inside Retail: Will Vinomofo and Revel continue to be run as separate businesses, or do you plan to merge them together?
Paul Edginton: Revel founder Dan Sims and the Revel team will continue running the current suite of Revel events as usual with full access to the team, infrastructure, and audience Vinomofo has built over the years.
Vinomofo owns 100 per cent of the Revel business and all Revel employees will remain with the company including founder Dan Sims who will retain creative control.
We’re super proud of what we do and our impact around the world and we wanted to do more for wine lovers.
The time was right for us to look at new opportunities to add more diverse offers for our tribe. The Revel acquisition allows us to do this.
IR: Given the impact of Covid on in-person events, what made you decide to acquire an events business? What opportunity do you see in this space?
PE: We’ve always had a huge respect for Dan Sims and the Revel brand and have had many discussions about collaboration opportunities. Over the last 18 months the team at Revel managed to navigate a path through the pandemic with innovation, adaption, and sheer determination. We saw that and admired what they achieved.
Earlier this year, the time was right for Vinomofo to look at new opportunities to improve and innovate on the customer experience and add revenue streams outside of wine sales. We’re excited about welcoming Revel to the family and realising the brand’s true potential.
Revel events like Pinot Palooza are legendary and the chance to connect industry legends with wine lovers in a fun, in person format, was irresistible.
It really is a coming together of two industry innovators who share the same passion for creating remarkable experiences. Our customers want engaging, fun experiences and this partnership allows us to build our capabilities and meet this need.
IR: A lot of drinks businesses saw a big uptick in demand during Covid. Can you share what sort of growth you’ve experienced over the last two years?
PE: There was a big shift to shopping online in general during Covid – what was interesting for Vinomofo was that bricks and mortar shops were still open too, whilst many other industries were confined to online.
What we did see was a shift to online and in-home experiences (for obvious reasons), which drove significant growth for the business.
Wine is all about coming together and enjoying life together. With many Australians having experienced ongoing lockdowns and restrictions over the last nearly two years, we know our tribe of Mofos are extremely eager for new experiences and to attend events in real life that complement their online experiences.
Everyone is looking for a sense of normality returning, but we also know that the new ‘normal’ looks very different – and lucky for us, we never deliver something ‘normal’.
We look forward to rolling out new, unique offerings with the team at Revel in 2022, and adding some spark and joy back into the food and wine industry across the country.
The post Why Vinomofo is looking beyond wine sales for future growth appeared first on Inside Retail.
