TOASTING HIGH PROFITS

Biz demystifies wine while it uncorks $50 million a year.

With adult per capita consumption of table wine at a 20-year high, and consumer demand expected to rise over the next decade, an innovative new franchise concept is poised to capitalize on the growing $25 billion retail wine industry. Employing a simple marketing strategy that takes the mystery and “snobbery” out of finding a great bottle of wine at a reasonable price, Vino 100 projects to open more than 50 franchise locations by the end of 2005. Systemwide sales are projected to hit $50 million in 2006.

Vino 100 was founded and developed by Gary Blumenthal as a kinder, friendlier way to purchase top quality wines at a price point that embraces both the casual and core wine drinker. Each store offers more than 100 varieties of wines, champagnes and cognacs all priced under $25 in a comfortable and fun atmosphere.

According to Blumenthal, who also serves as president of Vino 100’s sister company Tinder Box, the country’s oldest and largest retail chain of cigar and gift shops, the inspiration for Vino 100 came from personal experiences. 

“I became very frustrated with wine stores that were all too often intimidating, snobbish and expensive, and wine “superstores” that offer a virtual ocean of wines but little information or service to help make sense of it all,” said Blumenthal. “Our customers tell us how much they love the ease, simplicity and value. These enthusiastic reactions motivated us to franchise this concept around the country.” 

No Wine Snobs Here
As more Americans discover and incorporate wine into their daily lives, consumers seek high quality, more interesting wines that are easily accessible and reasonably priced. With this in mind, Vino 100 stores boast simple designs with information-based, user-friendly features that take the guesswork out of choosing a bottle. 

Each wine is showcased on a pedestal accompanied by a “Vino 100 Wine Barometer,” a graphic, easy-to-understand wine rating and information system that visually charts a wine’s flavor and body, as well as describing the wine in laymen’s terms. This information is also captured in the Wine Palate Computer System, which is used to tailor marketing efforts to further strengthen relationships with individual clients.

Vino 100 is currently offering single unit locations as well as multiple unit development opportunities across the United States. The franchise fee to own and operate a Vino 100 is $30,000, and it is not necessary for prospective franchise owners to have previous wine knowledge. 

“The ideal franchise owner has proven success in business, and a passion for developing relationships with people,” Blumenthal said. “We provide franchise owner support that begins with site selection and training, and continues with ongoing training in inventory management, retail store operations, marketing, and merchandising.”

Vino 100 is economical in terms of its size, personnel and inventory requirements. The featured wines are small batch, artisan brands from around the world, rather than more commercialized, heavily discounted major brand names.

“Vino 100’s business approach is to attract customers who become our friends,” Blumenthal said. “We help them discover and trust their likes, dislikes and preferences in order to cultivate ongoing relationships. Most importantly, we know we’ve done our job when someone walks into Vino 100 looking for a bottle of wine and leaves with three bottles after learning something and saying ‘thank you’ for the experience.”

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