Full Glass Wine Co. has added to its direct-to-consumer wine operations with the acquisition of US peer Bright Cellars.
The California-based business announced the deal alongside news it had closed a Series A funding round worth $14m.
In a statement, Full Glass Wine said the purchase of Bright Cellars and its funding highlights its "commitment to become the dominant player in the evolving D2C wine market”.
According to Full Glass Wine, Bright Cellars will allow the business to cater to a "broader range of consumer needs and preferences", offer different price points, and “solidify its position as a one-stop shop for all things DTC wine”.
Full Glass Wine’s D2C portfolio includes two US businesses – Winc and Wine Insiders.
Neha Kumar, the co-founder and COO of Full Glass Wine, said: "This Series A funding and the acquisition of Bright Cellars are significant milestones for our growth, putting us on track for a projected $100 million-plus revenue run-rate in 2024.”
Louis Amoroso, a fellow co-founder and Full Glass Wine's CEO, added Bright Cellars has an "innovative approach to personalisation". He said: "We are confident that together, we can create an even more engaging and rewarding experience for wine lovers everywhere.”
The Series A funding round was led by Shea Ventures, the corporate venture arm of J.F. Shea Company.
Full Glass Wine said the investment will be used to support its plans to buy D2C platforms and invest in marketing and technology.
The deal comes as D2C wine sales have seen uncertain times in the US in recent years, according to a report by software business Sovos ShipCompliant and media group Wine Business Analytics.
Last year, the value of the market inched up 0.1% to $4.1bn. Volumes dropped 6.5%, or by 500,000 cases, the report said, without providing a total volume figure. Shipments to California fell more than 14% in volume terms.
However, the average price per bottle of wine sold rose for the third consecutive year. The average price stood at $48.35 in 2023, a 7.1% increase in cost.
The declines were driven by bottles $30 and under, which represent around 43% of the D2C channel.
"Despite this downturn and in a sign of the shipping channel’s resilience, the value of the direct-to-consumer shipping channel remained steady at $4.1bn, due largely to demand for the highest-priced wines remaining stable," the report noted.
