Friday, March 23, 2018

Another One Bites the Dust


Kuvée, an IoT for wine startup that had raised $6mm of venture capital, announced that it was shuttering this week.  The company produced Wifi-enabled bottles with a touch-screen display; the bottles contained wine in a cartridge that supposedly kept the wine fresh for up to 30 days.  The initial bottle with four wine cartridges cost ~$180, which I think is well above the price point that most casual drinkers are used to – and if you’re more than a casual wine drinker, you probably don’t care as much about wine staying fresh for 30 days (it never lasts that long in my house!).  The cartridges, which were the same size as a standard 750mL bottle of wine, cost between $15 and $50 each to replace.

The company had received some hype (its preorder sold out on Indiegogo in 3 hours) but also some criticism (basically that it was the “Juicero” of wine).  It seems like consumers didn’t believe there was enough substance to merit the investment of totally switching to the Kuvée system.  I myself had seen advertisements and had looked into it, but I was reluctant to purchase something that required such a wholesale switch.  I like to be able to purchase wines from wineries I’m interested in and as part of wine clubs, and this wouldn’t be compatible with standard bottles.

It looks like they are trying to sell the assets of the company, so maybe this technology will be reborn as the many others we’ve seen in this class.  Either way, it’s a reminder of how important it is to make sure you have a good customer value proposition – just hitting a lot of IoT buzzwords is not enough.

Here’s a few articles if you’re interested:

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