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From: lewis.perdue@wineindustryinsight.com

Subject: IBG: REthink Engine Out, Vin65 In - WINE INDUSTRY INSIGHT

Date: 2010-06-02 22:42:36

To: Emailing List Subscriber
Please use CMD+F (Mac) or CRTL+ F(Windows) to find your specific search term within this issue of NewsFetch. This "double search" is due to our links sourcing from websites not within WineIndustryInsight.
EDITOR'S NOTE: I apologize for sending two emails this evening, but this news came in after the Nielsen article was sent to you. This is not a frequent event. I hope I have not inconvenienced you. --Lew Perdue


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EMAIL EDITION - VOLUME II, NUMBER 22 - June 2, 2010

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IN THIS ISSUE:

  • IBG: REthink Engine Out, Vin65 In



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IBG: REthink Engine Out, Vin65 In

Inertia Beverage Group (IBG) has scrapped its REthink Engine and signed a deal to license the Vin65 eCommerce and marketing platform for its customers to use for direct sales efforts, according to an email sent out to IBG clients late June 2 by IBG President & CEO, Joe Waechter.

British Columbia-based Vin65 is owned by K1 Technology Corp and began business in November 1999 building content management and ecommerce systems for small businesses.

IBG’S CURRENT FEATURE SET INADEQUATE

“While our focus has shifted over the past year to fully integrating our newly acquired fulfillment assets,” said Waechter’s email, “we realize that our own eCommerce platform has lacked some much needed attention.  And we understand that as a consequence, the current feature set does not always meet your expectations in terms of what is necessary to run your business efficiently.   We hope to rectify that through our agreement with Vin65.”

LEGACY CODE FROM MID-1990S AGGRAVATED SITUATION

IBG has struggled for several years to modify, patch and expand legacy code. Some of the code was created for Virtual Vineyards and was the pinnacle of ecommerce software in 1995. That code was acquired and further modified when Virtual Vineyards was acquired by wine.com. The code, bearing the source code equivalents of duct tape, bailing wire and chewing gum wound up at New Vine Logistics which IBG acquired in the summer of 2009.

The repeatedly patched software has been a burning source of frequent employee and customer frustration, and often required manual re-entry of data.

WTN SAYS IBG MOVE VALIDATES BUSINESS M ODEL

“This is exciting news,” Chris Edwards, VP and General Manager of the Winetasting Network/WTN Services told Wine Industry Insight, “Vin65 is a platform we believe strongly in. They have developed our retail websites with great social media capabilities that are allowing us to grow our consumer direct business and that of our winery partners on the Vin65 platform. We are glad to see IBG/NVL validate our philosophy and business model. Clearly, the old NVL/IBG strategy of a “one-stop-shop, wholly-owned solution is a failed business model.”

PHASED MIGRATION FROM REthink TO VIN65

According to Waechter’s email, IBG  it will take several months to move from the REthink Engine  to Vin65. “Over the coming months we will be working with you to transition your eCommerce store and club tools from the REthink Engine to the Vin65 platform. We’ll be following a phased migration schedule,” said Waechter. “At the moment, as you can imagine, we are in the early planning stages of that migration.  However, as we iron out all of the details over the next few weeks, your Account Manager will be able to provide much more information.”

WAECHTER CITES ADVANTAGES OF MOVE

“To give you a sneak preview, you’ll get a better shopping cart with features like upfront display of shipping rates, guest checkout (i.e. registration is not required), and product ratings and reviews,” said Waechter’s email. “You’ll also find that the content management system is easier to use and much more flexible, with items like self-managed navigation and photo galleries.  You’ll receive advanced customer segmentation, list building and email marketing tools.  And finally, many of you will be pleased to know that the Vin65 platform is integrated with Napa Valley POS as well as with some of the newer online reservation applications.  In terms of compliance, you’ll have your choice of Compli or ShipCompliant, both of which are integrated.”

FULL TEXT OF IBG EMAIL

Dear Valued Clients,

I’m writing you today to share some very exciting news regarding our eCommerce services.

We’ve entered into a licensing agreement with Vin65 that will enable us to make the Vin65 eCommerce and marketing platform available to you for use in your direct sales efforts.

Vin65 is a provider of eCommerce, customer relationship management (CRM), content management and club processing systems for wineries. They’ve been in business since 1999 and have supplied eCommerce technology to numerous wineries and wine retailers over the years.

Why have we partnered with Vin65?

Our goal is to provide you with the best technology and services available for management of your direct sales program. For us, delivering on that promise means providing you with:

a. Advanced sales and marketing tools to help you sell more wine

b. Compliance capabilities to make management of the direct sales channel easy and cost-effective

c. An efficient, accurate, and responsive logistics team to make sure your wines are delivered promptly and your customers are happy

While our focus has shifted over the past year to fully integrating our newly acquired fulfillment assets, we realize that our own eCommerce platform has lacked some much needed attention. And we understand that as a consequence, the current feature set does not always meet your expectations in terms of what is necessary to run your business efficiently. We hope to rectify that through our agreement with Vin65.

Our licensing of the Vin65 platform means that some of the most advanced eCommerce features in the wine industry today will be available to you, allowing us to drive real value to your business. Ecommerce is, and will continue to be, a very important part of our business model, as we believe that effective sales and marketing tools are essential to your success in the direct sales channel.

What does this agreement mean for you?

Over the coming months we will be working with you to transition your eCommerce store and club tools from the REthink Engine to the Vin65 platform. This movement means a tremendous boost in your ability to effectively market your wines directly.

To give you a sneak preview, you’ll get a better shopping cart with features like upfront display of shipping rates, guest checkout (i.e. registration is not required), and product ratings and reviews. You’ll also find that the content management system is easier to use and much more flexible, with items like self-managed navigation and photo galleries. You’ll receive advanced customer segmentation, list building and email marketing tools. And finally, many of you will be pleased to know that the Vin65 platform is integrated with Napa Valley POS as well as with some of the newer online reservation applications. In terms of compliance, you’ll have your choice of Compli or ShipCompliant, both of which are integrated.

How will the transition happen?

To facilitate a smooth upgrade experience for you, we’ll be following a phased migration schedule. At the moment, as you can imagine, we are in the early planning stages of that migration. However, as we iron out all of the details over the next few weeks, your Account Manager will be able to provide much more information regarding scheduling, migration details, and additional benefits you’ll realize as a result of the new eCommerce platform. We appreciate your patience and support as we make this transition. We think you’ll agree that the reward is great.

Going Forward

We’re very excited about the future and this agreement is just the beginning. Going forward we’ll continue to stay abreast of the latest in loyalty based marketing, social media, conversion tactics, eCommerce technologies and more. And we’ll be working closely with Vin65 to ensure that your eCommerce platform remains at the forefront of leading technologies.

I hope you share in our excitement and I look forward to talking with you in person at one of the many summer events coming up. Thank you for your continued partnership.

Best Regards,

Joe Waechter

President & CEO


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Lewis Perdue
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