Enhancing the Enjoyment of Wine Collecting w/ Elton Potts, Vine Vault

XChateau Wine Podcast

Catching the wine bug from the nudge of a physical trainer, Elton Potts, Founder & Managing Partner of Vine Vault, has built a business focused on enhancing the enjoyment of wine and wine collecting. From full-service wine storage to refrigerated shipping to hosting wine events, Vine Vault has grown rapidly and serves six markets in the US.

Detailed Show Notes:

Elton’s background

• A 27-year career in finance & ops ran a global storage and logistics business
• A physical trainer said beer would undo the impacts of training and to substitute it with red wine
• Frustrated with storage and delivery options that existed, he started Vine Vault

Vine Vault

• 1st two facilities launched in Q4 of 2015
• 70% annual revenue growth, doubled in 2021
• Six markets (Napa, LA, Austin, Atlanta, Miami, Philadelphia), >50 team members (incl ~12 sommeliers)
• >75% of wine stored in a full-service storage program

Mission: to enhance the enjoyment of wine and wine collecting (beyond storage)

Additional services

• Fully refrigerated, door-to-door delivery services
• Fulfillment service for high-end wineries, incl pick & pack, hand labeling, wax dipping
• Moving cellars
• Wine events
• Sommelier services

Storage basics

• Climate control with low temp fluctuation
• Humidity - too dry dries corks; too humid creates mold
• Security - feel safe and have ease of access
• Access wine - want availability, but doesn’t risk security
• Clean facility - no chemical smells that can damage wine or rodents that might eat labels and packaging
• Location access - ease of drop off / pick up (e.g., ramps)
• No vibration
• Lifestyle requirements - staff to receive shipments, inventory wines

Pricing varies by location

• Self storage - ~$3-4/case/month
• Concierge / full service - ~$4.5-8/case/month

Scale is not that important for only storage

• Scale supports logistics and events
• Plans to expand into more markets

Arranges pickup & delivery of wines bought from wineries for consumers

• Schedules delivery, refrigerated, no styrofoam
• Winery avoids breakage, returns, and damage
• Winery knows customers get the best experience of the wine

Inflation and supply chain impacts - price not keeping up with cost increases

• Added a fuel surcharge
• The most significant issues are supply chain, e.g., a truck offline for 4 months waiting for a door latch

Developed boxes for storage & shipping

• Cardboard lays bottles flat, sturdy for stacking, and bottles don’t touch each other
• 40-60% recycled material, no styrofoam
• White color to show confidence in the process, won’t get dirty or damaged

Traveling road show for wineries - organize and plan events

Business breakdown - all segments growing

• Wine delivery 40%, storage 30%, wine moving 20%, events 10%
• The biggest opportunity is delivering wine

Trends

• More women collecting wine
• Post-baby boomers collecting wine
• The storage business is still growing, and people are becoming aware of it

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