NEW YORK, NY, SevenFifty, the online platform for wholesale alcohol sales, today announced that it has closed a $8.5M Series A round.
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The round of funding was led by Formation8, with participation from additional investors including Pritzker Group VC. The investment reinforces SevenFifty's position as the leading platform using technology to modernize and streamline the wholesale buying and selling process, enhancing the human connections and relationships that are an essential part of the business. As part of the investment, Drew Oetting from 8VC joins SevenFifty's board.
SevenFifty was launched in 2012 by veterans of the bar and restaurant industry who experienced first-hand an inefficient wholesale wine and spirits supply chain that had not changed since Prohibition ended. To fill a glaring void, they teamed with a Stanford CS Ph.D. and built a robust and real-time database that standardizes disparate data sets and provides educational information on a wide variety of wines and spirits including product details like vintage and region, labels, and more.
Today over 700 distributors across 30 states are present on the SevenFifty platform, representing roughly $20B in combined annual sales. Additionally, over 30,000 buyers are sourcing wines and spirits through SevenFifty, ranging from small and local bars and retail locations, to fine dining restaurants, restaurant chains, and large retailers.
'In the past, buyers at restaurants and wine and spirits stores worked exclusively through a highly incomplete printed phonebook-style directory of brands and products,' said SevenFifty CEO Aaron Sherman. 'Buyers would text or email their distributor reps about what products were available, the cost of those products, shipping and delivery details and more. SevenFifty streamlines this unwieldy and time-consuming process and gives both buyers and sellers access to better information and more time to run their business.'
SevenFifty's platform adds value to all three tiers of the wholesale wine and spirits supply chain:
Wholesale Distributors: Makes complete portfolios easily accessible to top buyers at restaurant and retail locations; Provides CRM tools that enable reps to better educate buyers on products and tasting events, track customer relationships, and reach new customers.
Retail and Restaurant Buyers: The most powerful search tool available in the industry offers the ability to navigate a comprehensive listing of available products; Standardizes disparate data sets and provides detailed product information and pricing.
Suppliers: Provides more visibility into how distributors are marketing and positioning their products; Offers a holistic and highly accurate view of what is available on the market.
'Using SevenFifty has provided tremendous value to our business and has led to a closer and more efficient relationship with our distributors,' said John Ragan, Director of Wine and Restaurant Operations and Master Sommelier from Danny Meyer's Union Square Hospitality Group. 'We can now operate more efficiently when building wine and cocktail programs, and bring a more comprehensive selection to our diners.'
'SevenFifty is bringing technology to bear in an industry that is still operating largely via pen and paper,' said 8VC partner and SevenFifty board member Drew Oetting. 'We are excited to partner with a company that is introducing meaningful innovation and new operating efficiencies to a massive market.'
SevenFifty is the online platform for the wholesale wine and spirits industry. The company's technology platform offers a robust and real-time database that standardizes disparate data sets and provides educational information on a wide variety of wines and spirits including product details like age and region, labels, and more. Launched in New York in 2012, SevenFifty streamlines the buying and selling process across all three tiers of the wholesale alcohol supply chain, enhancing the human connections and relationships that are an essential part of the business. For more information, visit www.sevenfifty.com/ or follow on Twitter @SevenFiftyHQ.