IBG Joins Forces with WTN Services to Create WineDirect
Overview and General Questions
- Is this a merger or acquisition?
- Why have you selected the name WineDirect?
- Why are the two companies joining forces now?
- What is the mission of the combined companies?
- What are the benefits of this merger?
- What do you see as the opportunities for the newly combined company going forward?
- Has something changed in the way either of the two companies view their individual fulfillment businesses?
- What does this mean for the future of direct shipping?
Questions Regarding Customers and Partners
- When will customers know who will be managing their account?
- Will the merger affect September wine club shipments?
- Why is this good for customers?
- What does this mean for business partners of either IBG or WTN Services?
- How will this affect current fulfillment rates for customers of either company?
Questions Regarding WineDirect Organizational Structure
Questions Regarding Products and Service Lines
- What opportunity are these two companies addressing by combining forces?
- What are the benefits of combining product lines?
- Are there areas of duplication and how will they be addressed?
- Will you continue to operate Call for Wine?
- Will WineTasting.com be a part of the combined company?
- Will the fulfillment business be run from the IBG or the WTN Services facility?
- Will you continue to operate the Cleveland warehouse?
- Both companies offer a 3-Tier solution. Will this new partnership affect current label registrations or price postings for customers of either company in any way?
- Will you be combining the online portals?
- How long do you anticipate the full integration of product lines taking?
- Will this affect IBG’s licensing agreement with Vin65 in any way?
- Are compliance services included in the combined offering?
- Will the new company offer international shipping?
- Will the new company continue to offer Direct-to-Trade services?
Overview and General Questions
Q. Is this a merger or acquisition?
A. IBG and WTN Services are joining forces to form a new company: WineDirect, Inc.
Q. Why have you selected the name WineDirect?
A. Our vision is that of combining technology and services to empower wine businesses to maximize the direct-to-consumer channel. We believe the name WineDirect embodies that vision.
Q. Why are the two companies joining forces now?
A. We see a real opportunity to couple the leading technology solution in the wine industry today with the marketplace opportunities of WineTasting.com to provide customers the greatest market reach, the best customer service, flawless execution and new marketing opportunities.
Q. What is the mission of the combined companies?
A. We’re creating an industry leader in the winery direct sales arena. The new company will be able to fully serve the needs of wineries as they increase their direct sales business, from customer acquisition and order processing to fulfillment and outbound telesales.
Q. What are the benefits of this merger?
A. We have an opportunity to create a top-tier solution which meets a broader range of customer needs. For wine businesses operating in the direct-to-consumer channel, the benefits are numerous, as we are able to combine the service offerings of our two companies to form a true all-in-one solution:
- A state-of-the-art facility and technology driven fulfillment system
- An extensive 3-tier network
- A leading edge eCommerce platform
- The Call for Wine telesales service
- A marketing partnership with 1-800-FLOWERS® through affiliates such as WineTasting.com and Fannie Mae Chocolates
- A long history of providing excellence in Direct-to-Consumer services to the wine industry
Q. What do you see as the opportunities for the newly combined company going forward?
A. We see a tremendous opportunity to help wine businesses maximize their direct sales via a top of the line service offering and support structure and to create and support extended marketing opportunities to help clients sell more wine.
Q. Has something changed in the way either of the two companies view their individual fulfillment businesses?
A. Not at all. In fact, we see a number of similarities between what the two organizations are doing, which is why joining forces makes so much sense. This provides an opportunity to create a stronger and more focused solution, one which combines the strengths of both organizations.
Q. What does this mean for the future of direct shipping?
A. We’re very bullish about the future of direct-to-consumer and this partnership is our way of demonstrating our commitment to the industry to take full advantage of the improving DTC sales momentum we are currently experiencing.
Questions Regarding Customers and Partners
Q. When will customers know who will be managing their account?
A. There won’t be any changes in our Client Services department. Customers will continue to work with the same Account Management team that they have worked with in the past, whether from IBG or WTN Services.
Q. Will the merger affect September wine club shipments?
A. No it won’t. There will be no disruption of service for customers of either company.
Q. Why is this good for customers?
A. Our coming together will benefit customers in numerous ways. New sales and marketing opportunities will arise as a result of the 1-800-FLOWERS.com® relationship as well as through access to our Call for Wine telesales services. Perhaps most exciting, however, are the opportunities for creativity, innovation and forward-thinking with respect to the various direct-to-consumer services that we offer. With the passion and creativity of our team, we are confident that we can change the way wineries operate within the direct-to-consumer channel. By building much tighter integrations between sales and marketing, order capture, and fulfillment, we can better serve our customers and enhance the way they manage their own customer relationships.
Q. What does this mean for business partners of either IBG or WTN Services?
A. We believe the combination of our two companies represents a tremendous opportunity for future expansion into complementary business lines, presenting new ways for us to work together and enhance our current partner relationships.
Q. How will this affect current fulfillment rates for customers of either company?
A. There will be no change to the fulfillment rates currently in effect.
Questions Regarding WineDirect Organizational Structure
Q. What will the management structure of the combined company be?
A. While the final organizational structure is still being determined, Joe Waecther, who is currently IBG’s CEO, will serve as CEO of WineDirect, and many of the current executives from both companies will assume key leadership roles in the new company.
Questions Regarding Products and Service Lines
Q. What opportunity are these two companies addressing by combining forces?
A. This is a decisive move that will allow us to offer significant value to our mutual customers and partners. The clear benefits of combining two highly complementary service companies place us in a position to shape the industry, with a dedicated focus on customer success and all-inclusive service. Together, as WineDirect, our two companies can service a wide range of customer needs. By addressing most of the direct-to-consumer service needs of wineries, from marketing and sales through operational services, we not only make it more efficient, but also more cost effective for wineries to focus on and build this aspect of their businesses.
Q. What are the benefits of combining product lines?
A. With respect to the direct-to-consumer channel, there are a number of synergies among our products and service lines, meaning that by combining, we can focus on tighter integrations between marketplace services, telesales, eCommerce, wine club, and fulfillment. This not only streamlines the process, but creates better visibility into order history, for a true 360° view of the customer.
Q. Are there areas of duplication and how will they be addressed?
A. There are some. However they are relatively few and will be addressed in the weeks and months ahead. For now, we stand by our commitment – there will be no disruption in service for our mutual customers.
Q. Will you continue to operate Call for Wine?
A. Yes, we will. Call for Wine is a very important component of our Direct-to-Consumer sales suite as it helps our customers to engage members of the wine club, thereby building loyalty and increasing sales.
Q. Will WineTasting.com be a part of the combined company?
A. WineTasting.com remains a business unit of 1-800-FLOWERS.com®. WineDirect will manage fulfillment and telesales for WTN/WineTasting.com and we will work together to access sales opportunities for winery customers through 1-800-FLOWERS.COM® affiliates such as Winetasting.com and Fannie May Chocolates.
Q. Will the fulfillment business be run from the IBG or the WTN Services facility?
A. In the near term, nothing will change for customers of either company. There will be no disruption in service, and customers will continue to enjoy the same level of service they are accustomed to, with both facilities remaining operational. Naturally, over the longer term the facilities will be merged into one.
Q. Will you continue to operate the Cleveland warehouse?
A. Yes we will. This is just one example of the many advantages of the new partnership. By reducing the time and costs involved in shipping to consumers on the East Coast, our mutual customers can sell Direct-to-Consumer more efficiently and cost effectively.
Q. Both companies offer a 3-Tier solution. Will this new partnership affect current label registrations or price postings for customers of either company in any way?
A. We don’t anticipate any issues, as both companies work with the same provider for 3-Tier compliance services. While there may be some instances where clearing wholesalers and retailers will change, WineDirect will be responsible for managing those relationships.
Q. Will you be combining the online portals?
A. Yes we will. And while the transition will not happen immediately, we are happy to say that all customers will soon have access to the most advanced online portal in the industry. IBG has invested heavily in fulfillment technology over the past couple of years and customers of both companies will soon be enjoying the benefits of those technology improvements.
Q. How long do you anticipate the full integration of product lines taking?
A. That is difficult to say. Customers will begin to experience some of the benefits right away, but full integration of product lines may take many months.
Q. Will this affect IBG’s licensing agreement with Vin65 in any way?
A. No, it won’t. And customers of WTN should contact their Account Managers if interested in learning more about our eCommerce services.
Q. Are compliance services included in the combined offering?
A. We will continue to offer the 3-Tier label registration and price posting services that we do now. In addition, we are fully integrated with ShipCompliant through fulfillment and through our eCommerce services.
Q. Will the new company offer international shipping?
A. Yes, we will continue to offer international shipping.
Q. Will the new company continue to offer Direct-to-Trade services?
A. We do offer Direct-to-Trade services to fulfillment customers via their own Vin65 eCommerce module. If interested, customers should contact their Account Managers for more information.
