Napa tech-driven wine club’s sales pass 700,000 cases
Philip James, a computational chemist by training, and Erik Steigler in 2015 started Penrose Hill Ltd., which operates the subscription wine club now called Firstleaf.
The venture’s business model is to tailor recommendations for shipments based on member taste preferences, ratings of previously tried wines, budget and schedule for how often they want to get wine. Firstleaf said on its LinkedIn profile that it has over 150,000 active members.
The company said it sold over 700,000 12-bottle cases of wine last year, and nearly 1 million consumers have tried out the club since it launched.
Firstleaf said it works with winemakers in 12 countries on five continents then blends its own wines in Napa Valley. The company offers its members wines at roughly $15 a bottle, according to its website.
James got into the wine business in 2005 after graduating with an MBA from Columbia University. Through a friend he was asked to step into management of The Wine Messenger, a small New York state wine importer direct-to-consumer retailer, according to an interview in Authority Magazine and James’s LinkedIn profile.
During his nearly two years there, he started Snooth Media, which grew to a large wine review and lifestyle portfolio of sites. In 2010 he left after founding wine club Lot18 and was CEO there for nearly four years.
Firstleaf raised $10.9 million in funding in 2017 and 2018, in addition to a seed round, according to venture backing tracker Crunchbase.
The Napa company returned to the Inc. 5000 list of fast-growing companies this year, placing at No. 1,725 with 357% revenue growth from 2018 through last year, the list’s main ranking metric. The Napa company debuted on the list last year at No. 1,020, with 473% revenue growth in 2017–2020.
“Firstleaf's expertise in winemaking and technology allows us to offer the best wine selections for every consumer, from beginners to experts,” James said in an announcement about Firstleaf’s return to the Inc. 5000 list. “We look forward to continuing to grow in this $70 billion wine market and offering wine that's personalized to each individual's taste.”
Firstleaf was named one of Fast Company magazine’s “World's Most Innovative Companies” in the data science category and was recognized as one of Wine Business Monthly's 50 largest wineries. Last year, the company was named Wine Company of the Year in Winemaker Challenge International's competition, judged by professional producers.
Company officials could not be reached for this story.
Jeff Quackenbush covers wine, construction and real estate. Before coming to the Business Journal in 1999, he wrote for Bay City News Service in San Francisco. Reach him at jquackenbush@busjrnl.com or 707-521-4256.
Correction, Aug. 24, 2022: Firstleaf offers to subscribers wines that it produces. The original version of the story said the club is a third-party provider, sourcing wines from other vintners.
