The fastest growing segment of wine drinkers is in the age bracket of 20-35 and they are, we believe, currently the most poorly served. We believe they are motivated by quality and expect convenience, control and instant gratification.
We believe it is a market wide open for disruption and modernisation with only just over 11% (£800m) of the wine consumed at home (£6.6bn) being bought online. From our research, it suggests that large segments of the target market are interested in learning more about wine and are prepared to pay a little bit more for better quality. In our view, most are put off by a dated and complex offering from traditional suppliers.
sippWINE (sipp) combines great wine, direct from winemakers, and smart technology to make quality wine accessible and to remove the pretence around wine. It has developed a solution that combines quality, technology and convenience in a proposition that could be compared to the likes of Deliveroo, Graze, Uber and Hello Fresh.
Founded by Moez, who was looking to marry his passions for both wine and technology, sipp has developed proprietary technology that helps you search for and learn about the wines in the sipp range.
The unique augmented reality interface offered through the sipp mobile app enhances the drinking experience, making it fun and informative.
sippSEARCH allows the consumer to find the perfect wine they might desire for any occasion. By scanning the label of a sippwine with the sipp app, the consumer is able to discover more information about how it was produced. We are also planning to launch an Alexa powered wine tasting at home.
For an affordable monthly subscription, the consumer will enjoy three carefully selected wines which will be delivered the next day (same day in London) in a beautifully presented box.
We are looking for further investment to substantially grow our subscriber base and to continue our technology development to refine and further enhance the sipp experience.
Substantial accomplishments to date
sipp was launched in July 2017 and has over 140 carefully selected wines in its portfolio as well as intuitive and smart technology in place.
sipp has since sold over 47,000 bottles to over 3,000 customers and successfully processed over 7,000 orders.
Importantly, we have built a team that we are confident can execute our plans. Collectively, the sipp team has built a global supply chain with strong relationships with passionate independent wine producers and strong marketing capabilities. We have implemented fully integrated CRM and Inventory systems to enable smooth management of our customer orders. We are proud to boast a 5* rating on Trustpilot.
We have raised over £1.3m to date in previous rounds, having attracted a strong group of investors and a highly seasoned advisory board. Our advisory board includes Simon Lee (former CEO of FTSE 100 RSA), Trevor Didcock, former CIO of FTSE 100 EasyJet, David Gower, wine lover and former England Cricket captain, and Paul Cable the lead marketer behind the success of Moneysupermarket.com.
sipp generates revenue and profitability through the sale of wine and by driving repeat purchases from happy customers.
sipp’s lead product is a smartly constructed wine subscription product called - the ‘sippCLUB’ - which will drive a core recurring revenue stream. Revenue will also be supplemented by upselling wine and gift boxes to our subscribers. Wine can also be purchased spontaneously through the sipp website or the sipp app without subscription.
With the sippCLUB priced at £29 per month (inc. delivery), our customers can have 3 quality artisan wines (RRP between £12-£15 each) delivered to their door (or a nominated collection point). With the sipp app, you can learn more about wine you are drinking and build your confidence about wine in general.
We believe sipp is one of the most innovative new wine propositions in the UK for decades. We are excited to invite you to join us in our success (wouldn’t it be nice to tell your friends you own part of a wine company?!).
Use of proceeds
Investment will be used to drive growth and to:
Scale up sales and marketing activities to drive customer acquisition and brand awareness – c.40%.
Accelerate technology development – c.20%.
Operational expenses and working capital – c.40%.
We believe we can become a household name and we also believe that we will become an attractive acquisition target and will be looking to realise shareholder value through a trade sale.
This investment round will enable us to take a substantial step forward towards our customer acquisition program and achieving our ambition to reach 100,000 active users by 2021.
Sipp has loans worth £180,000 which will be repayable when further funds (committed) by an existing shareholder will be received. Any funds used for repayment of these loans will be held outside of the campaign.