There was a time when shopping for wine in a supermarket was a stressful ordeal. And for many casual wine drinkers, the last thing we want is a confrontation with the overwhelming wall of wine bottles, each vying for our attention with their fancy labels and sometimes cryptic gibberish.
But that all changed for the better when serial entrepreneur Heini Zachariassen decided that he was sick of playing wine Russian Roulette. Today, as the co-founder of Vivino, the world’s largest online wine marketplace and app, the Danish innovator has transformed how the world chooses and enjoys wine.
In his latest endeavour, opening the first-ever global flagship store in Raffles City, Singapore, Tatler Dining uncovers how he turned the once daunting task of selecting a bottle for an occasion into a stress-free yet informed experience, and why he is now ready to take the plunge into physical retail.
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Think outside of the box
When asked about how Vivino came about in the beginning, Zachariassen recalls, “I thought, there must be a better way to make a decision than just the price or a fancy label.” The global wine industry is valued at over US$330 billion dollars, and is notorious for being extremely traditional and complicated. But Zachariassen saw an untapped market ready to be disrupted.
Vivino’s concept is simple yet revolutionary: scan any wine label with your phone, or simply type in the name shown on the bottle, and you’ll be instantly greeted with official tasting notes, prices, purchasing options via the app, and even ratings from a global wine community. “Everything else has ratings—movies, books, even taxi drivers—so why not wine?” he muses.
Heini Zachariassen is the co-founder of Vivino, the world’s largest online wine marketplace and app (Photo: Vivino)
Vivino was founded in 2010 but only went to market via the Apple App Store in 2011. At the time, around 600 wine apps were already in existence. So how did it edge out its competition? Zachariassen grew up on the Faroe Islands in the North Atlantic, where there was no wine industry and “most people barely knew what wine was”. He offers a bold perspective: “As an outsider, you can see things the insiders can’t. Use that to your advantage!”
Zachariassen, a self-professed casual wine drinker, realised that most wine apps were made by passionate oenophiles and seasoned experts, and it was likely that they were disregarding a demographic that didn’t necessarily understand wine as much as they did.
Harnessing his expertise in software technology, Zachariassen identified the pain points of the everyday consumer and addressed the issues that caused shoppers anxiety with Vivino. The app quickly gained relevancy and popularity, which led to securing their first vote of confidence when they raised an initial Series A round of funding of US$10.3 million dollars in July 2013. “The early investment validated our belief that we could win in this space,” he shares.
Then in January 2016, a sizeable US$25 million dollars was raised in a Series B round of funding, giving Vivino prominence as the largest global wine app. Zachariassen reveals, “By then, we had no real competition, and we’ve only continued to grow ever since.” The steady momentum saw them raise another US$20 million dollars at a Series C round of funding in February 2018.
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The Covid-19 pandemic was the biggest growth opportunity Vivino experienced (Photo: Vivino)
Shutting the door on adversity
The looming Covid-19 pandemic, one that proved detrimental to most businesses globally, was in fact the biggest growth opportunity Vivino experienced. “People stayed home and couldn’t go out to enjoy wine. And with the disposable income to spare, they started ordering more for home consumption,” he explains. “It was such rapid growth that we doubled and tripled in no time.” Relying on external partners to fulfil orders presented Zachariassen with new challenges, including having to match the shocking demand with fewer hands on deck due to safety restrictions.
Furthermore, the growth allowed Zachariassen keen insights into shifting consumer preferences. “Younger generations are more open to trying new things,” he notes. Gone are the days when older consumers clung tightly to familiar brands. Now, even casual wine drinkers aren’t afraid to be adventurous and are swiping right on wines rated positively on Vivino without hesitation. This shift reflects a broader trend toward trusting community reviews over traditional marketing—an evolution that Zachariassen is thrilled to witness.
Vivino’s first-ever global flagship store in Raffles City, Singapore (Photo: Vivino)
Breaking the mould
In 2021, Vivino successfully raised US$155 million dollars at a Series D round of funding. “In the post-pandemic era, while sales have levelled off, we’ve found new revenue streams that have been equally successful,” reveals Zachariassen. One of which was to explore Vivino offline, blending digital innovation with the tactile experience of in-person shopping. “We wanted a space where customers can physically interact with wines and receive personalised recommendations,” he adds.
And why Singapore? “It’s cosmopolitan with a discerning population,” he says matter-of-factly. “Plus, it’s an ideal launchpad for further expansion in Southeast Asia.” The store promises an immersive experience where every bottle is rated and recommended by Vivino’s 70-million-strong community. Before committing to a bottle, guests can also try a rotating selection of wine by the glass at the in-house wine-tasting bar, fostering the spirit of exploration.
Vivino’s in-house wine-tasting bar in Raffles City fosters the spirit of exploration (Photo: Vivino)
Reaffirming his commitment to helping people pick and drink better wine, he warns, “The wine industry must recognise that the new generation won’t behave like the previous one. Producers and retailers who fail to adapt to younger audiences will be left behind.”
In a world where choices are endless and traditions often hold sway, Zachariassen is proving that sometimes all it takes is a fresh perspective—and perhaps a well-rated bottle of wine—to spark real change.
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