1. with online retail in South
Africa still very much in
its infancy, some of the
most compelling suc-
cess stories have come from ‘e-tailers’ that have
chosen to specialise in and serve niche markets.
From organic and natural food products
(Faithful to Nature) to limited edition luxury
men’s socks (Nic Harry), specialisation has thus
far proven to be a smart strategy in a young but
fast-evolving local e-commerce sector.
Given SA’s legions of wine
lovers and world famous wine-
ries, it is unsurprising that wine is
having its own cyber moment –
with a plethora of both new and
established retailers launching
online platforms to peddle wine
both locally and internationally.
According to Nicolò
Stortiglione Pudel and Vincent
Bührer, co-founders of start-up
Port2Port, a specialist fine wine
e-tailer, online wine represents
a unique opportunity to combine advances in
technology, commerce and marketing – and
ultimately transform the local sector.
“In South Africa, the wine industry is far
behind other categories such as fashion and
electronics [with regard to e-commerce],”
explains Pudel. “Added to this, SA e-com-
merce is between five to 10 years behind the
By Jessica Hubbard
trendthe week
12 finweek 8 September 2016 www.fin24.com/finweek
From cellar to cyber:
SA’s fine wine is moving online
Founders of Port2Port, an e-tailer specialising in fine local wines, talks about their
company’s phenomenal growth.
legacies of local wineries with tech expertise
to provide a highly curated online showcase.
According to Pudel, Port2Port has formed close
partnerships with eight wine farms and four
established wine retailers.One of these retailers
isWineCellar, which was established in 2000
and made its own move online two years ago.
Roland Peens, directoratWineCellar, echoes
the positive sentiment at Port2Port regarding
the potential of e-commerce forwine mer-
chants, noting that about 20% ofWineCellar’s
sales now originate online.
“This is far more than I had expected, and
I think we will hit the 30%-mark next year,”
he says. “We think there is a tenfold growth
opportunity online, and the tipping point is
coming soon.”
Peens states that it’s the millennials and
youngerconsumers who are driving the shift to
buying online, although he addsWineCellar’s
online platform is attracting the oldergeneration
as well.
“People enjoy having access to a wider
variety online, and they can easily do their
research and read reviews before purchasing,”
he explains.
“Also, the fact that it can be delivered to your
doorstep within hours is huge.”
As with Port2Port’s tech-orientated team,
Peens emphasises the importance of custom-
er service and timely trouble-shooting – with
smart logistics underpinning the online offering.
“If you’re not willing to invest in customer
service then you will fail – you will not get repeat
orders,” cautions Peens. “Being online requires a
firm commitment and dedicated resources.”
This is surely good news foreven the most
casual of wine drinkers, as both new and
established retailers scramble to bring the best
ofSA’s bubbly straight to theirdoors. ■
editorial@finweek.co.za
US and Europe – so as newcomers, we have a
double advantage.”
Equipped with formidable backgrounds in
digital marketing, technology and commerce,
the founders of Port2Port essentially built a
technology company first – and then added
the fine wine component with a laser beam
focus on customer service.TheCapeTown-
based start-up officially launched in January
2015, with the backing of former FNB CEO
Michael Jordaan. Jordaan, whose love forfine
wine is well known, invested in
Port2Port through his venture
capital firm MontegrayCapital.
Despite the fact that local
e-commerce is still tiny, and has
yet to surpass 1% ofSA’s total
retail, Pudel and Bührer insist
that there is massive growth
potential.This potential,they say,
can already be seen in the quick
and enthusiastic take-up of
the Port2Port platform, having
enjoyed a 46% customer return
rate since inception. In addition, the founders
note that the business is growing at a rate of
30% to 35% perquarter, along with a rapidly
expanding portfolio and the beginnings of an
intricate international networkof distributors.
“We are tapping into a market that is small
but hungry for new innovations,” adds Bührer,
also highlighting that Port2Port has global
ambitions and will ultimately be a showcase for
fine wines on an international scale.
Bottleshock
With an eye on the remarkable success of digi-
tally driven platforms such as Uberand Airbnb,
Port2Port is looking to replicate theirdisruptive
approach by leveraging technology – and an
“open source” attitude – to cut out the middle
players and bring prices down.
“Wine has a very complex and sporadic
distribution process attached to it, and there
are multiple players involved,” says Pudel. “In
ourview, there are two stakeholders who lose
out as a result: the consumer (who pays a high
price) and the producer, who comes out with
the lowest margins.”
By collaborating with the major retailers and
suppliers, Port2Port aims to pairthe established
The founders note that the
business is growing at a rate of
30%to
35%per quarter
“People enjoy having access
to a wider variety online,
and they can easily do their
research and read reviews
before purchasing.”
Nicolò Stortiglione Pudel and Vincent Bührer
Co-founders of start-up Port2Port