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XOne Global Crisis Helped IPO-Bound Winc Sell Wine. Another Poses a Threat.
Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.

Buoyed by a surge in sales during the pandemic, Playa Vista-based wineseller Winc aims to raise as much as $92 million in a public debut that's anticipated this week.
The 10-year-old company expects to price its IPO between $14 and $16 per share and has applied to list on the New York Stock Exchange under the symbol "WBEV."
Like other alcohol purveyors, Winc has seen a "significant increase" in direct online sales since March 2020, according to an SEC filing published last week. As the pandemic shuttered bars and restaurants, more people splurged on bottles of wine and spirits to drink at home. Excessive drinking spiked during lockdowns, too.
Winc's executives say the online frenzy reflects a "permanent shift in consumer behavior," away from buying bottles at brick-and-mortar stores.
Winc produces its own wines in collaboration with vineyards and other wine brands, such as Yes Way Rosé. And in a sense, Winc can be thought of as a wine-brand factory. It aims to pop out as many as ten new brands per year based on the data it gathers on customers and their ordering habits. To that point, Winc says its mission is to "become the leading brand builder within the alcoholic beverages industry."
The majority of Winc's revenue today comes from its subscribers, who pay monthly for bottles tailored to their palates, but the company also sells its brands through wholesalers. In all, Winc says it sold more than 430,000 cases of wine in 2020, up 80% from the prior year.
While the pandemic has been a boon for Winc's sales, another global emergency poses a threat to its bottom line.
Photo by Klara Kulikova on Unsplash
Climate Change and Wildfires
Winc warned in its filing that destructive events linked to climate change, such as wildfires and extreme weather, "could negatively impact the quality and quantity of grapes available to us and our producers for wine production."
The wine industry at large has already suffered from fires and extreme weather. For example, smoke taint has ruined harvests and rising temperatures have disrupted growing regions.
"We are already beginning to see the effects of climate change on wine in many regions of the world," Columbia University climate scientist Dr. Benjamin Cook told dot.LA. For example, droughts and wildfires in the West are "linked in part to climate change, and these events are having impacts on grape growers and harvests in California and elsewhere in the region," said Cook in a comment on the wider industry.
But Winc sells a ton of California wine. All five of the company's "core brands" — which each bring in between "$1 million and $10 million in annualized revenues" — feature California grapes, though not always exclusively. Winc's "Wonderful Wine Company," for example, sources grapes from California as well as Spain, Argentina, and Chile. For its part, Winc says it is "not reliant on any one vineyard or geographic" because it outsources production.
As the impacts of climate change nevertheless grow clearer, climate-related disclosures such as Winc's have also "grown dramatically" in the U.S., the Securities and Exchange Commission said earlier this year.
And wine is one among countless industries affected by the climate crisis.
Google, for example, has cautioned that hotter temperatures could drive up the cost of cooling its data centers, while drugmaker Eli Lilly has said the warming Earth may boost demand for some of its medicines.
Winc's Footprint
While noting the threat of climate change, Winc also laid out in some detail how it limits its carbon footprint. The company said in the filing that it uses "flexi-tanks" to pack more wine into shipping containers and it plans to embrace corks that are "100% plant based, 100% sustainable and made from discarded materials."
Winc also says it strives to produce 75% of its wines "from sustainably farmed grapes by the end of 2021." The wineseller advertises many of its bottles under a sustainability banner, but it offers little information on how it determines whether a bottle of wine was produced sustainably.
Winc did not respond to requests for comment on its coming IPO.
Editor's note: Winc has reportedly postponed its IPO. The firm did not immediately respond to a request for comment.
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Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.
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Old Guard on High Alert as Streaming and New Tech Storm Upfronts
Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.
Are the upfronts turning into TV execs’ personal “Black Mirror'' episode?
The annual feeding frenzy—in which C-suite television executives auction off highly-viewed (and costly) advertising time slots— is changing as new streaming behemoths shake up the market. The event often gives viewers and industry watchers insight on what shows are poised to become cultural phenomena, but that too seems to be disrupted at this year’s proceedings.
It’s been two years since major networks and television players convened in New York for a week, and it’s clear that technology is going to change a lot about how the process works.
Streaming, a popular way to view content, doesn’t follow traditional ad slots the way broadcast does. Nonetheless, last year ad-enabled streaming services–including Peacock and Hulu–slurped up a large slice of ad dollars. But this year may prove a turning point, as services like HBOMax and Disney Plus begin tinkering with ad-laced streaming, and Netflix promises to quickly roll out an ad-supported subscription tier. Large networks like ABC and NBC will have to start competing with streaming for the favor of companies and their ad money.
Another thing changing the market: the ads themselves. With more data at their fingertips, streaming services can offer far more personalized and targeted services than their network counterparts. Netflix and Disney collect mountains of data that can gauge what ads are most relevant to their viewers. That’s a huge plus for advertisers, even if streaming services like Disney restrict what kind of ads it will show.
Legacy TV companies have already taken note. NBCUniversal took great pains at Monday’s pitch meeting to offer their Peacock streaming service as an example of a dual streaming-and-broadcast model and lambasted streaming services that once showed disdain for advertisers and ad breaks.
“At those companies, advertising could seem like an afterthought… or even worse, a new idea for a revenue stream, but not here,” NBCUniversal’s ad sales chief Linda Yaccarino said, according to The Hollywood Reporter. “At NBCUniversal, advertising has always been an asset for our business… designed to enhance your business.”
Adding to the instability, Nielsen ratings, which has been the universal standard for measuring viewership, is being challenged. The company’s ratings were once the gold standard used, in part, to determine the time slots and networks that had the most viewers (and which became the most coveted by advertisers).
Last year, Variety reported major networks complained that the company was likely undercounting viewership due to pandemic-related restrictions, like being unable to go into peoples’ homes and making sure the data-collecting technology was properly working. In its wake, software-enabled startups have popped up to better gather data remotely.
Washington-based iSpot.tv received a $325 million investment from Goldman Sachs after acquiring similar companies including El Segundo-based Ace Metrix and Temecula-based DRMetrix. Pasadena-based tvScientific raised $20 million in April to glean adtech data from smart tvs. Edward Norton’s adtech firm EDO raised $80 million in April and booked a deal with Discovery ahead of the upfronts.
Nielsen also lost its accreditation with the Media Ratings Council, and without a standard ratings guide for the industry, navigating the upfronts will be a far more uncertain and nebulous process for both networks and advertisers.
With tens of billions of dollars on the line, advertisers are demanding more than just well-produced shows networks and streaming services alike—sophisticated ad placements is the name of the game.
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Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.
Explore Los Angeles Like a Tourist with Atlas Obscura's New Guide
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Samson is also a proud member of the Transgender Journalists Association. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
The Los Angeles Tourism Department partnered with curiosities and travel website Atlas Obscura for a first of its kind digital interactive map of L.A. County’s top attractions, just in time for the summer influx of tourists.
Visitors to L.A. – or locals looking for a fun reason to leave their apartments – can scroll the interactive map on a browser or download the app.
Image courtesy of the L.A. Tourism Dept.
The “Discover Los Angeles” map can be broken down by neighborhood or by a series of “guides,” which all feature as part of the larger promotional campaign roll-out known as the Explorer’s Guide to L.A
Atlas Obscura and the Tourism Department also published a hardcover edition of the Explorer’s Guide, along with several other speciality breakout guides, including the Meeting Planners Guide, artistic Visitor’s Map and, for those with more expensive tastes, the L.A. Luxury Guide to the city’s pricier pursuits. The paper versions of the guides have QR codes for travelers to scan and take information with them on the go.
This year’s collaboration with Atlas Obscura gives the Tourism Department’s previous guide a much-needed update – it was previously a whopping 136-page PDF document created in 2020.
The Explorer’s Guide includes a mix of places you’d expect to see on the map, like Griffith Park and the museum at the La Brea Tar Pits. It also has some unlikely spots sourced from Atlas Obscura’s network of local explorers who recommended their favorite places to visit: the Palos Verdes Peninsula, Venice Canals or the Watts Towers, a stunning, monumental public art exhibit of mosaic steel towers that was built by one Italian immigrant over a 34-year period.
30 neighborhoods are discussed in the guide, from classic tourist destinations like Hollywood and beach cities like Santa Monica and Venice to lesser-known but still exciting enclaves like Leimert Park, Frogtown and Little Ethiopia. There’s also several maps for specific interests – taqueria lovers will find new spots to nosh with the taco map, and there’s also a map of the Downtown Arts District, spots to stargaze and sports venues.
“For myself and the writers and editors on this project, many of them L.A. natives, getting to write and curate the official visitors guide to the city of L.A. was an absolute dream,” Atlas Obscura co-founder Dylan Thuras said in a statement. “We hope that these guides will inspire all the curious travelers arriving in L.A., to try new things, as well as providing new adventures for longtime L.A. residents. There is really no limit to what L.A. has to offer.”
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Samson is also a proud member of the Transgender Journalists Association. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
Tech Groups Push Back Against Texas’ Controversial New Social Media Law
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
Two groups representing social media giants are trying to block a Texas law protecting users’ political social media content.
NetChoice—whose members include the Culver City-based video-sharing app TikTok—and the Computer & Communications Industry Association (CCIA) filed an emergency application with the Supreme Court, the Washington Post reported Friday. HB 20, which went into effect Wednesday, allows residents who believe they were unfairly censored to sue social media companies with over 50 million U.S. users. Tech companies would also have to integrate a system for users to oppose potential content removal.
The law, which was initially signed by Governor Greg Abbott in September, was previously barred by a federal district judge but was lifted by the U.S. Court of Appeals for the 5th Circuit in New Orleans. NetChoice and CCIA claim the law violates the First Amendment and seek to vacate it by filing the application with Justice Samuel A. Alito Jr.
“[The law] strips private online businesses of their speech rights, forbids them from making constitutionally protected editorial decisions, and forces them to publish and promote objectionable content,” NetChoice counsel Chris Marchese said in a statement.
The two lobbying groups also represent Facebook, Google and Twitter. The latter is undergoing its own censorship conundrum, as Elon Musk has made it a central talking point in his planned takeover.
Tech companies and policymakers have long clashed on social media censorship—a similar law was blocked in Florida last year, though Governor Ron DeSantis still hopes it will help in his fight against Disney. In the wake of the 2021 insurrection in the capital, Democratic lawmakers urged social media companies to change their platforms to prevent fringe political beliefs from gaining traction.
Conservative social media accounts like Libs of TikTok have still managed to gain large followings, and a number of right-wing platforms have grown from the belief that such sentiments lead to censorship.
Having citizens enforce new laws seems to be Texas’ latest political strategy. A 2021 state law allows anyone to sue clinics and doctors who help people get an abortion, allowing the state to restrict behavior while dodging responsibility.
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.