The Winetasting Network, which grew from a small Napa wine catalog company to a sales and distribution arm for 100 California wineries, has been bought by 1-800-FLOWERS.
The purchase will provide the Winetasting Network's catalog sales division, Ambrosia, access to 1-800-FLOWERS' 15 million customers, along with financing to expand the entire company's technology, said Lesley Berg-lund, Winetasting Network chief executive officer and founder.
"If we are attached to a larger customer base, it will help us grow," Berglund said. "It is expensive for us to acquire customers, but they have an $800 average price per order. It is expensive to get customers, but once that you get them, they are loyal."
Terms of the sale were not released.
In 1991, Berglund founded Ambrosia, a catalog and e-commerce wine sales company that now has 1,500 customers and $2 million in sales.
In 2000, Berglund founded Napa-based Winetasting Network, which has an e-commerce wine site and also handles wine club and direct shipping services for 100 wineries. Its annual revenues are $9 million.
The company has 85 employees and a 70,000-square-foot warehouse in Napa.
Berglund said it will retain its name, Winetasting Network, and be a wholly owned subsidiary of 1-800-FLOWERS. She will remain as chief executive officer and all other managers and employees will be retained.
1-800-FLOWERS, based in Westbury, N.Y., was founded 25 years ago and is a direct marketer of flowers, plants, gourmet foods and gift baskets. It had $97.5 million in revenues in its last quarterly report.
Jim McCann, chief executive officer, said 1-800-FLOWERS had been looking for a wine company to expand its gift line.
"The Winetasting Network fits all of our criteria: Strong leadership, deep wine industry contacts, a respected wine catalog and the infrastructure to accommodate growth," McCann said.
The company's stock closed Thursday at $8.40, down 6cents.
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