Idea

Introduction

Humble Grape, an existing and profitable wine merchant and events company are raising funds to take their brand to the high-street.

Humble Grape already has an existing private and corporate client-base in London, along with an extensive portfolio of 130+ unique wines, directly imported from boutique, family-owned, vineyards.

The plan is to pilot a retail premises in/near Shoreditch, London. In a stylish and relaxed environment, customers will be able to discover Humble Grape wines. They will be able to buy bottles to take home (or cases to be delivered or stored in bond) or to drink on the premises offered with a menu of small plate artisan high-quality food.

After the pilot site we plan to have 4 sites within 5 years. Investors will have a stake in Humble Grape, the existing company. The retail premises will be part of this company.



Because Humble Grape wines are purchased directly, the margins remain very profitable while at the same time retaining attractive prices for customers.

Intended impact

Our aim is to democratise and demystify wine for all, through the development of a high-street brand.

With a commitment to delivering high-quality and unique customer experiences, Humble Grape expects to achieve an 80% customer retention rate. We plan to take this ethic to the high-street, offering a highly curated experience to all customers, whatever their wine knowledge.

We will use a blend of outstanding hospitality and user-friendly technology to engage customers, facilitate their discovery of wine and foster brand loyalty.

Humble Grape wine experiences are unpretentious, educational and a fun way to allow individuals of all levels of knowledge to connect with wine. Humble Grape is developing software which will not only teach and offer suggestions but will also remember and develop clients’ preferences and flavour profiles. Think automated wine diary.

Easy to use mobile apps will enhance the client interaction with the brand and capitalise on the shift to mobile consumer spending. The experience delivered by the application will be highly curated and relevant to each individual and thus trusted more. The client experience will be continuous. From the retail premises to their living rooms, clients will be able to stay connected to Humble Grape using innovative apps. Functionality will also allow a seamless purchase and storage of wines in virtual cellars for those with little or less than ideal storage conditions.

Connecting wine buyers directly to small vineyards and their winemakers strengthens the brand proposition and means vineyards spend less money on marketing and instead reinvest to make better quality wines.

The idea is not to have the most high-tech wine business but to create a highly curated and high-touch customer experience with technology as both the enabler and connector to a previously under served sector.

Substantial accomplishments to date

Corporate clients include Deutsche Bank, JP Morgan, ICAP, HFI, IBM, Dassault, SH Legal, Linklaters, DataArt and RLAM Monthly orders from 3 catering firms, 7 restaurants and 5 independent merchants.

Including our corporate events, we aim to host 1,500 guests at our events each year.

Humble Grape hosts monthly tastings which are regularly sold out at 50 seats.

Founded in August 2009, Humble Grape was a hobby (passion) business of James Dawson, then MD of a finance company who started out delivering his favourite wines strapped to the back of his motorcycle. With no external investment to date, the company has generated significant profits with strong growth year on year.

Humble Grape exclusively imports wine from family-owned vineyards in France, Italy, Spain, Germany, Portugal, Australia and South Africa. All of our wines are organic, biodynamic or sustainably produced are of outstanding quality and are frequently awarded 5 stars by Decanter Magazine.

Monetisation strategy

Humble Grape aims to build on existing revenue streams plus maximise new revenue from the retail premises. The premises will have an existing client base and high footfall plus be close to finance and technology corporates.

In our experience, traditional wine bars and champagne bars in London could turn over between £500k and £1.2m/year without the added revenue streams that Humble Grape expects to be able to generate.

Existing revenue streams:

1. Monthly private client tastings

* 35-50 tickets sold at around £45pp - in addition to wine sold per night

* Hosting these bi-weekly in our own premises is expected to double this revenue

2. Bi-Monthly private client winemaker dinners

* 15-40 tickets sold at around £90pp, in addition to wines sold per event

* Hosting these monthly at our own premises is expected to double this

3. Corporate events from £1,000 to over £12,000 per night. Using our own premises is anticipated to reduce venue rental costs by £4,000 - £6,000/year

4. Wine sales: We sold a total of over 23,000 bottles in 2013, an average of 160 cases per month

New revenue:

5. On site sales of wines, foods and experiences. Humble Grape has an extensive portfolio of wines from £9 - £75/bottle. Currently our main source of wine sales is events (tastings and dinners). The premises will allow us to sell 7 days a week instead of 2-3 days a month. Current home-delivery model only allows wine sales by the case (6 or 12 bottles). The premises will enable sales of wine by the bottle and glass.

6. Online. Currently only a fraction of our of sales are online. Following a recent website upgrade, we plan to invest in a targeted digital marketing strategy, and expect strong growth via this channel. A premises will further enhance customer engagement online, using apps for wine discovery, food matching and purchases. Virtual cellar building - wine selection via smartphone to be stored in bonded warehouse.

7. Wine-tasting experiences to be sold in packages for people to replicate at home. Incentives will be provided to run these experiences.

Use of proceeds

£100,000 - existing restaurant rights

£40,000 - rent, taxes and salaries covering period from signing lease to opening

£30,000 - refurbish and refit of premises

£20,000 - software (apps and website for premises)

£25,000 - results-driven marketing campaign

£15,000 - enomatic machines (http://www.enomatic.co.uk/wineelite.php)

£10,000 - stock

£10,000 - miscellaneous

Total: £250,000

As outlined in the introduction, we plan to open an additional 4 sites over the next 5 years following the success of the initial site. We have assumed that the expansion post the initial site, will be fully financed from operating cash flow and external bank debt.