How two Australian brothers-in-law turned a garage wine business into a $50 million company in 5 years

A business idea that took several attempts to get right eventually turned into a $50 million-a-year wine company. Australian brothers-in-law Justin Dry and Andre Eikmeier started selling wine from their Adelaide garage in 2011. By April 2016, their business, Vinomofo, had more than 400,000 members and 110 staff.

The company’s growth also caught the attention of investors. Five years after its launch, Vinomofo secured $25 million from Australian investment manager Blue Sky Venture Capital as it prepared to enter new international markets, as per a report.

How Vinomofo Turned Daily Wine Deals Into a Growing Business

The idea behind Vinomofo came from the rise of online deal websites such as Groupon. Eikmeier said the founders saw an opportunity to apply a similar flash-sale model to wine.


The website started by offering a daily wine deal. It later expanded its selection, giving customers access to a wider range of brands at bargain prices.

By April 2016, the company was generating $50 million in annual revenue and its membership had grown beyond 400,000 and it had a workforce of 110 people.

The Founders Tried Several Ideas Before Vinomofo Worked

Vinomofo was not an overnight success. Dry and Eikmeier had experienced multiple business failures before finding an idea that gained traction.

Eikmeier described Vinomofo as their fifth version of a business idea that people responded positively to. He also said it took him about six attempts to get there.

In 2012, the founders sold the business to daily deal website Catch of the Day. They bought it back a year later.

Eikmeier explained that the sale was driven by a need to scale quickly and help wine producers deal with pressure from major retailers, including Woolworths and Coles.

How Vinomofo’s Model Helped Wineries Reach Customers

The company’s approach focused on reducing costs along the sales channel by cutting out intermediaries.

In ABC News' April 7, 2016 report, Stephen Harvey, Deloitte’s national wine industry leader, said, "The winery still gets a good return, the consumer gets a cheap price, they're doing a lot of cutting out the middlemen."

Harvey also noted that suppliers selling through Vinomofo operated at much lower volumes than the large wine companies supplying major retailers.

The distinction mattered in a market where major suppliers were selling millions of cases of wine, while Vinomofo’s suppliers operated on a smaller scale.

Vinomofo Secured $25 Million to Enter Six New Markets

In April 2016, Vinomofo raised $25 million from Blue Sky Venture Capital to support plans to expand into six new markets, including the United States and China.

Blue Sky’s Dr Elaine Stead described the company as having a sustainable business model. She said Vinomofo had been growing profitably since its launch in 2011 and that the investment manager saw an opportunity for further growth.

By then, the business had come a long way from its Adelaide garage beginnings. Five years after its launch, Vinomofo had reached $50 million in annual revenue, built a membership base of more than 400,000 and employed 110 people.