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By segregating the value of a wine into two components, the physical bottle, and a digital token, the cost impact of import tariffs and excise taxes can be ameliorated. |
The wine pricing problem
Wine producers face a unique challenge, in part because they are beholden to this three-tier supply-chain. Despite built-in scarcity, elasticity, and quality variability, wine producers lack mechanisms for dynamically adjusting their prices.
Once a wine producer provides a suggested retail price, it is very difficult for them to increase price, to accommodate scarcity and demand, nor can they readily slash prices on slow moving wines, or wines that are reaching the end of their drinkability.
Boutique wine shops complain that supermarket chains undercut prices below the cost distributors provide. Wine stock that has failed to sell quickly becomes unsellable, and wineries cannot dump product without using the grey-market, thus competing with their existing channel. And the few wineries that do sell DTC, cannot be seen as competing with their retailers. For this reason, buying wine directly from the winery is rarely a good deal for the consumer.
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With dynamic tokenized pricing, wineries no longer have to “enforce” suggested retail pricing (SRP) upon their supply chain. |
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For the supply-chain
Risk reductionForwarder
A wine distributor or retailer who purchases large volumes of tokens at an attractive price, can choose to redeem small amounts at a time, maintaining the option to liquidate the tokens if the wine is not selling as expected, or if the token price increases beyond the threshold they consider acceptable.
Fulfillment - Access to new customer base
A wine importer that works with OpenVino wineries can choose to be act only as a forwarder, fulfilling orders from token holders, without being part of the sales cycle. But the importer still gains access to the delivery customer data.
Imprinting customers as new crypto users
People remember when they buy their first crypto-currency. Wineries that onboard new crypto users imprint their brand on this memory.
Ability to pay brand ambassadors / influencers / markets in wine tokens
Marketers promise the moon to their customers, but are rarely held accountable for moving the needle in sales. By paying marketers in the assets they are meant to be selling, their success or failure is immediately compensated.
Regulatory friction reduction
Wine regulators are
Fraud reduction
For the consumer
Price authenticity
Belonging to the community
First NFT and DAO tokens, risk-free entry into crypto
Attestation authenticity
Gifting, prizes
Liquidity farming and P2P lending
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