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

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