As a consumer, I have found Lot18 to be the most c...

2011-04-13T20:34:57.518-07:00

As a consumer, I have found Lot18 to be the most compelling, with WTSO and Wine.Woot coming in behind it. As part of their growth strategy, Lot18 is offering occasional coupons on deal sites like LivingSocial to drive traffic, resulting in hard-to-find wine at 50-60% off an already competitive price. Can they survive this way? Obviously not, but they can certainly increase traffic.

The wineries are not losing out with the coupons...Lot18 takes the hit. Yes, the wineries have to be careful about devaluing their brand through association with sites such as these, but the fleeting state of a flash deal minimizes the impact.

As the economy picks up, I agree that these companies will be challenged to reinvent themselves. I see Cameron Hughes' business model working better in the long term....he buys excess inventory from the wineries and private labels the wine. The winery is able to offload excess juice and maintain the integrity of their brand by not being visibly associated with a discounter.

Lot18 is invitation only, but you can use the following link to access their offerings:

http://www.lot18.com/i/FriendsandFamily

Comments on True Fabrications: Flash Sale Websites for Wine

As a consumer, I have found Lot18 to be the most c...