Why We Invested in GRATSI: Wine that Reminds Us to Live Slow and Live More
Born from the love and appreciation for a simple, stress-free life, GRATSI is an ideal fit for our thesis of investing in innovative consumer companies that cultivate joy. A zero sugar, American-vineyard sourced, sustainably packaged brand, GRATSI is based on a deep conviction that the public deserves good quality, premium boxed wine, for which we see great future success.
The global alcohol market is valued at over $1.6 Trillion, and the U.S. wine market size was estimated at roughly USD 60 Billion in 2023, more or less stable depending on different sources of forecast. What is interesting, though, is not to know whether we are seeing slight market growth or decline, but how the pieces are moving within this large industry and the resulting opportunities that innovators can tap into. Millennials are the most involved age group in the wine category, and boxed wine is 2x to 5x less expensive than its bottled equivalent, which appeals to these financially savvy, socially conscious consumers, as does its substantially smaller environmental impact: Boxed wine is approximately half (or less) the weight of its bottle equivalent, and compared to the packaging required to put that same wine in 750ml glass bottles, the carbon footprint of the bag-in-box package is 84% less, with the carbon footprint of distributing this lighter, more compact package being 60% less.
There is no one better than Stephen Vlahos to lead this particular pioneering brand. Stephen is an experienced entrepreneur and a straightforward, no-nonsense CEO who knows his business intimately. Before GRATSI, Stephen founded and led Bellhop for 14 years, a tech-enabled provider of on-demand moving services offering low-stress shifting and home services. Backed and supported by TopShelf Ventures, a New York-based alcohol-only VC fund, and Newbound, a consumer product/tech fund with a consumer thesis similar to Joyance, Stephen is laser-focused on continuing to grow his large subscriber base and rolling out a massive retail opportunity.
On the back of a vibrant, resonating brand that brings that Italian riviera, slow morning, table wine culture, GRATSI has built a very smart and strong go-to-market playbook that we believe will make GRATSI boxes widely available in stores across the nation soon, as suggests their first in-store tasting and retail launch in Connecticut, which far exceeded expectations.
Based on traction, this is one of the most attractive consumer companies we’ve seen as a fund. With a strong tailwind from a growing segment, consumer consumption behavior shift, and a clear product-market fit, GRATSI is also a very attractive potential M&A target, with large incumbents actively on the lookout. We’re thrilled to support them on their journey.
By Investment Partner Thibault Vanvincq
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