Los Angeles Business Journal

Club W Launches Original Wine Line

By Natalie Jarvey Tuesday, June 11, 2013

Club W has made a business selling other companies' wines for a monthly subscription fee. Now the company will start selling wines made specifically for its customers.

The El Segundo wine retailer announced Tuesday that it has partnered with Brooklyn, N.Y., boutique winemaker Wonderful Wine Co. to produce a line of six wines.

The wines, which were created based on data that Club W has received about its customers' preferences, are priced at either $13 or $19. They include four red wines – a cabernet, a pinot noir, a merlot and a red blend – and two white wines – a chardonnay and a sauvignon blanc.

Xander Oxman, Club W’s chief executive, said creating its own line of wines is better for the business.

"There is a better margin in there for us," he said. "A wine maker doesn't have to take the financial risk closing stuff out and doesn't have to spend the money on brand building."

Wonderful Wine Co. was founded by winemaker Brian Smith. Club W named Smith as its chief wine officer in March.

Club W's subscription plan provides customers with 3 bottles a month for a $39 monthly fee (plus a $6 shipping rate). Subscribers can buy additional bottles, which retail at $13 or $19.

The Wonderful Wine Co. wines will be sold individually through Club W's subscription plan or together in a pack of six.

Oxman said the company plans to continue to work with winemakers to create lines specifically for Club W.

"We'd like to be able to participate in the upside of bringing these largely unknown brands to a very receptive audience," he said.