A Legacy of Innovation in Online Wine Retailing
Wine.com stands as the largest online wine retailer in the United States, a success built on a category-defining domain name and decades of industry innovation. The company’s history is a story of vision, strategic acquisitions, and the evolution of wine e-commerce.
The journey began in 1994 when Robert Olson, along with Master Sommelier Peter Granoff and Information Architect Harry Max, founded Virtual Vineyards in Los Altos, California. Their mission was to sell wine directly to consumers via the Internet, a groundbreaking concept at the time. On January 24, 1995, Virtual Vineyards sold its first bottle of wine online, one of the earliest e-commerce wine transactions.
At the same time, in 1995, David Harmon launched Wine.com as an information platform for wine enthusiasts. The value of a strategic-grade domain like Wine.com was apparent early on, and in 1999, Virtual Vineyards acquired Wine.com for over $10 million, integrating the domain into its growing business. The following year, VirtualVineyards.com merged with WineShopper.com, operating under the Wine.com name. However, despite its strong branding, financial difficulties led the company to bankruptcy in 2001.
The eVineyard Acquisition and the Birth of Modern Wine.com
While the original Wine.com faced challenges, Mike Osborn had been building his own online wine business. In 1998, he founded eVineyard in Portland, Oregon, focusing on e-commerce-driven wine retail. His software and systems integration background gave him an edge in leveraging technology to improve wine distribution. “That’s how I got introduced to e-commerce software,” Osborn recalls in an interview for MarketWatchMag.
Seizing an opportunity, eVineyard acquired Wine.com’s assets in 2001, including its valuable domain name and intellectual property. This move allowed the company to rebrand as Wine.com while relocating its headquarters to San Francisco, California. “We did that to keep the software out of someone else’s hands,” Osborn says. “We didn’t need a competitor.”
This groundbreaking domain acquisition provided instant credibility and visibility, which helped drive business growth.
Expanding Reach and Strengthening the Brand
In 2006, Rich Bergsund joined as CEO, overseeing a financial and strategic transformation. Under his leadership, Wine.com focused on building valuable relationships with wineries, wholesalers, and customers, ensuring its position as an industry leader. “The more helpful you are to the customer, the more customers engage with your business, click on links, and buy things,” Bergsund explains. “The better you are at doing business with the customer, the better chance you will be included in searches.”
Wine.com’s trusted domain name, easy recall, and strong customer engagement cemented the company’s market leadership and industry credibility. “We benefit from essentially being consummate about wine,” says Osborn, emphasising how the company’s commitment to quality and customer engagement has fueled its success.
Today, Wine.com offers over 13,000 SKUs, selling millions of bottles annually across 41 states and Washington, D.C. The company’s warehouse locations enable fast delivery, enhancing the online wine-buying experience.
Protecting the Brand with a Trademark
With a powerful strategic-grade domain, Wine.com sought to protect its brand by registering the WINE.COM trademark with the U.S. Patent and Trademark Office (USPTO). Initially, the USPTO rejected the application, arguing that the name was generic. However, Wine.com provided substantial evidence that it was a distinct brand, not just a generic descriptor.
Through market research, consumer surveys, sales data, and media recognition, Wine.com successfully argued that its name was synonymous with quality wine retailing. In August 2023, it secured its trademark registration, reinforcing its brand identity and industry dominance.
Looking to the Future
Now majority-owned by Baker Capital, Wine.com continues to lead the digital transformation of wine retailing. With $350 million in annual sales and a growing customer base of 690,000, the company remains committed to expanding its selection, investing in technology, and enhancing customer experience.
We are always looking for ways to improve, whether through technology, partnerships, or expanding our selection. Our goal is to make buying wine online as easy and enjoyable as opening the bottle itself.
Rich Bergsund
Osborn ensured the company would always have a competitive advantage by securing Wine.com. The domain name remains one of the most valuable assets in the wine industry, driving search dominance, customer trust, and market leadership while establishing Wine.com as a leading retailer and go-to online destination for wine lovers worldwide.
The right domain name is an important consideration when it comes to building and protecting your brand. If you’re ready to take the next step and invest in a perfect domain name for your business, contact us to learn more about our available options and how we can help you get started.
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