UPDATE 2009-06-01: Wine Business News has confirmed the suspension. You can follow the realtime reaction on Twitter.
Someone gave left an anonymous comment to on one of my recent posts which alleged that the bank had padlocked the warehouse at New Vine Logistics (NVL) on Friday morning, May 29th.
I tried to contact NVL on Friday at about 4:30 PM Pacific to confirm the rumor. I did reach David Yewell, one of their two sales managers, who didn't have any information, having been out of the office on sales calls all day. I tweeted looking for another contact to confirm the rumor, without luck.
LarryTheWineGuy tweeted this morning (Sunday, May 31st) that NVL has suspended operations.
If this is true, there will be lots of repercussions. They are believed to be Amazon's partner for shipping and compliance, and have wine in inventory from a whole slew of wineries.
It's not just the wines that wineries are storing with NVL, but NVL handles compliance and reporting for about 200 wineries (02 license) and retailers/importers (17/20 license).
NVL is trying to work out an orderly transition to other shippers, but you know this is going to be a massive headache for a lot of people.
Ship Compliant may also have more info about this.
Posted by: Larry Chandler | May 31, 2009 at 04:33 PM
This is what happens when you try to be hyper compliant and can't quite cover costs...
Posted by: epicuria | May 31, 2009 at 11:28 PM
OK. It's true.
Posted by: anonymous | June 01, 2009 at 08:44 AM
Just received a news flash from Wine Business Monthly that confirms NVL is suspending operations.
Posted by: Jon Bjork | June 01, 2009 at 09:11 AM
Does anyone have a full list of NVL's client wineries?
I did not see it on their web site.
I am curious to know which wineries will be affected.
Posted by: Arthur | June 01, 2009 at 11:58 AM
I'm 99% sure no one will give you a client list, just as I won't indulge any info. I am just so dumbfounded as to how something like this happens and I hope that all of the winery clients can get some shipment fulfillment and compliance under control. This is going to HUGELY affect the wine industry at a time when direct to consumer shipments are SO SO SO crucial.
Posted by: Erica Lauesen | June 01, 2009 at 03:15 PM
Glad I didn't go with Amazon.com and their new boutique wine shop as I'd surely have dealing with this potential nightmare. So I'd imagine all the 02 holders out there need to quickly jump ship and look for another compliance person, esp in lieu of all the new shipping laws each state has erected.
Posted by: Bill | June 02, 2009 at 06:29 AM
Kathleen Hoertkorn, founder of New Vine Logistics, a Napa-based wine shipping and fulfillment company, and Chairman of the Board Homer Dunn responded today to media reports about the suspension of its business operations yesterday, June 2.
New Vine Logistics is currently working with customers to transfer all services to another means of legal direct shipping, and in the meantime, is finalizing all work, including compiling of reports, reconciling inventory and invoices, and performing all of the necessary business operations for the months of May and June.
In response to comments that the company knew it was in financial trouble, Hoertkorn affirmed that they “truly believed that they would have been funded and were not expecting to have to cease operations.”
“New Vine has always been committed to quality, legal service, and built the only service that integrated compliance and fulfillment. It does cost more to be compliant and follow all the laws established by the various states. The company also pioneered many solutions such as temperature controlled packaging. The whole objective was to allow wineries to concentrate on sales and marketing, versus the back end processes from inventory to fulfillment to special services to compliance.”
New Vine was founded in May 2001 by wine industry, technology, and transportation veterans to solve the complex business problems associated with the interstate sale and distribution of wine. The company has developed proprietary fulfillment systems that enable fully compliant consumer-direct shipping in up to 44 states.
Hoertkorn stated that she will keep winery customers, employees and shareholders advised of next steps. “We deeply apologize for the situation, and we pledge to work with our customers to make as smooth and expedient shipping transition as possible.”
Posted by: Charlotte Milan | June 02, 2009 at 12:20 PM
Erica,
is anyone shipping wine in the summer though? If this was going to happen, it seems summer's the time for it as long as the wine's stored in a temp controlled space... most wineries won't ship mid-summer unless they have to, right?
Posted by: rick | June 02, 2009 at 01:14 PM
New Vine had a technology called "Wine Assure" that kept wine cool during shipment even during hot days. They had it exclusively, I think.
Posted by: Larry Chandler | June 02, 2009 at 01:16 PM
Why doesn't someone ask the question about not paying it's employees? Over 75 employees were let go on Friday 5/29 without their final checks or accrued vacation. The employees that are left behind are being told day to day if they will be paid for their work, but have seen no money yet. They are being told last week's pay is still in question, as no one wants to take responsibility for that. The board is washing its hands, and management doesn't want to help. Someone please help the employees get paid! They are not responsible for what has happened.
Posted by: with-held | June 02, 2009 at 02:10 PM
Some small shipping companies lost clients to NVL - some had to file chapter 11. NVL promised these clients proper fulfillment and happy recipients. After only a few years, it's gone. Is it a good idea to become so big that their head wasn't listening to what their pockets was saying?? Wouldn't their clients been happier with the smaller, family owned, personalized shipper than a Mega Shipping Monster"promise to do it all" Company?
Posted by: vinogrl | June 11, 2009 at 11:53 AM