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TechFortune 500

Amazon Is Selling Its Own Private Label Wines Now

By
Rachel King
Rachel King
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By
Rachel King
Rachel King
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July 6, 2017, 11:24 AM ET
NEXT is the inaugural label under the King Vintners banner.
NEXT is the inaugural label under the King Vintners banner.Courtesy: Amazon, King Vintners

There is nothing outside the realm of possibility for Amazon.

A new day brings another new business opportunity for the tech, retail, and even entertainment giant—and the next business venture appears to be winemaking. Perhaps appropriately named, Next Wines is the inaugural private label from King Vintners, a new subsidiary wholly owned by King Estate Winery (self-described as the “Kings of Pinot”) in Oregon’s Willamette Valley wine country.

The first three bottles available are the 2016 Willamette Valley Pinot Gris, the 2014 Columbia Valley Red Blend, and the 2015 Oregon Pinot Noir, retailing for $20, $30, and $40, respectively. King Vintners plans to add four more brands to its lineup eventually. Recode reports that it appears Amazon (AMZN) inked a deal with King Estate winemakers to develop the wine on the e-commerce giant’s behalf. (An Amazon representative later reached out to Fortune disputing this, saying “This brand is not owned nor developed by Amazon, it is just sold via Amazon Wine.”)

Right now, the wines are sold online exclusively through AmazonWine.com, where oenophiles can already scour a digital cellar housing bottles ranging from sparkling pink moscato to sampler cases themed for HBO’s Game of Thrones. Amazon Prime customers can also get other wines delivered within two hours in areas where Amazon Prime Now delivery service is available.

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But it’s not hard to connect the dots and speculate when—not just if—these will appear at Whole Foods (WFM), which Amazon just bought for $13.7 billion. There are many ways industry insiders and analysts have imagined how Whole Foods locations can serve as new distribution centers for Amazon.com products and deliveries, and Amazon.com already hawks private label goods online.

Many of Whole Foods locations nationwide have extensive and heavily-curated beer and wine sections, which offer tastings and host scheduled events with the producers, both drawing more customers to featured products while also establishing a stronger relationship with local customers. King Estate vintners also said in a recent announcement that the Amazon partnership was a “natural fit” with a direct-to-consumer sales model.

“When people lived in the same village, the wines and cuisine developed together,” said Ed King III, who co-founded King Estate in 1991 with his late father. “Today that direct link is at risk of being lost. We’re launching NEXT on Amazon to re-establish the connection between winemaker and wine lover in today’s ‘digital village.'”

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