Winery focuses on lowering the prices of quality wines that might cost US$10-20 abroad and getting these to consumers in the Philippines for the same price
Winery.ph, a curated online wine marketplace in the Philippines, announced today that it has raised an undisclosed amount in funding from a consortium of high net-worth private individuals.
Although the exact valuation remains undisclosed, the latest deal places Winery at a modest “seven-digit US dollar” valuation, as per a press note.
The fresh investment will be used to accelerate the startup’s sales and marketing activities, as well as to fund operational capacity to service customers and vendors.
“While venture capital has poured into Chinese wine and spirits marketplaces over the past five years, smaller but promising markets like the Philippines are still off the radar for many investors. Our backers see the chance to establish early market leadership amidst thinner competition, higher margins and a small but profitable and fast growing segment,” said Chris Urbano, Founder and Managing Director at Winery.
Launched in June 2017, Winery connects small-scale wine sellers directly with consumers. The startup does not list mass-produced, factory-made wines, but instead focuses on lowering the prices of quality wines that might cost US$10-20 abroad, and getting these to consumers in the Philippines for the same price.
Wines are sourced from Australia, France, the US, Italy, Portugal, New Zealand and Chile, direct from the wineries and from the best Manila wine suppliers to ensure only the best boutique, quality wines.
Currently, it serves a majority of customers in Metro Manila but is growing order volume from provincial areas and second tier cities, where access to quality and value for money wine is even more limited.
Additionally, the company has launched Kavino Club, a subscription programme that allows consumers to receive a curated range of two, three or six bottles monthly at discounts, in addition to wine information cards, year-round freebies and perks.
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“Being an emerging wine market, there is already considerable and growing interest in learning about and drinking great wine in the Philippines,,” said Urbano. “But the problem is that Philippine wine drinkers at large don’t have access to good quality wines and prices are often poor value for money compared to buying elsewhere due to the monopolised and high cost nature of retail distribution in the Philippines.”
According to him, the high prevalence of distribution gatekeepers in the supermarket and hotel and restaurant scene limits the ability of smaller boutique quality wine importers to get their goods to market.
“Winery.ph is well positioned at the nexus of rapidly increasing consumer interest in wine and wine knowledge, the blistering rate of growth of e-commerce, and amidst a backdrop of strong macroeconomic growth — with the Philippines now trading places with China as the fastest growing economy in Asia,” he added.
Retail wine revenue in the Philippines amounts to US$300 million and is expected to grow annually by nine per cent, up to US$400 million in 2021, with three to five per cent (US$12 million to US$20 million) estimated to be derived from online sales channels. High demand for wine is sustained by the growing number of middle- and higher-income consumers.
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