Report: Amazon's wine business partner runs into trouble

Amazon.com's long-awaited foray into the wine business has apparently hit a snag. New Vine Logistics, the Napa Valley company Amazon picked to help it with shipping wine, "has suspended operations amid financial problems," the Wall Street Journal reports.

Reports from last September indicated Amazon was poised to begin selling bottles of wine online. The company had tapped New Vine Logistics to help it navigate the confusing patchwork of interstate wine sale laws. Since then, there's been no word on the fate of the Amazon wine program, and New Vine's troubles add another bit of uncertainty.

Amazon does sell wine through its Amazon Fresh grocery delivery service, though the service is currently limited to the greater Seattle area. CEO Jeff Bezos, in a recent shareholder meeting, described Amazon Fresh as an "experiment" and gave no sign that it is expanding geographically, at least yet.

Update: New Vine Logistics issued a statement that reads:

New Vine Logistics is currently working with customers to transfer all services to another means of legal direct shipping, and in the meantime, is finalizing all work, including compiling of reports, reconciling inventory and invoices, and performing all of the necessary business operations for the months of May and June.

It also quotes New Vine founder Kathleen Hoertkorn as saying, "We deeply apologize for the situation, and we pledge to work with our customers to make as smooth and expedient shipping transition as possible." (Full text of New Vine statement was posted in the comments field below.)

New Vine spokeswoman Charlotte Milan had no comment on the company's work with Amazon.

Follow my updates on Twitter.

About Eric Engleman

ERIC ENGLEMAN is senior technology staff writer for TechFlash and the Puget Sound Business Journal, covering online retail giant Amazon.com. Engleman tracks Amazon's increasingly complex business, spanning ecommerce, Kindle, cloud computing, and more. He's been covering technology and other industries for the Business Journal since 2003.

READ FULL BIOGRAPHY

206-876-5430

@ericengleman

Recent Sponsor Posts

Attention Web Developers

Join the Microsoft WebsiteSpark program and get software, support and visibility – at no upfront cost. You’ll benefit from fast and easy access to current Microsoft development tools, platform technology and server products including Visual Studio, Expression Studio, Silverlight, Windows Web Server 2008 and SQL Server 2008 Web.

Seattle-based Adhost is a WebsiteSpark hosting partner providing dedicated servers with free Windows Web Server 2008 and SQL Server 2008 licensing for three years to Web developers enrolled in WebsiteSpark. Servers are located in our secure data center with SAS 70 Type II certification, 24x7 technical support and 24x7 client access.

Join today.

MORE INFORMATION

WTIA 15th Annual Industry Achievement Awards

Held on March 4^th at the Showbox SODO, this casual event celebrates and recognizes some of the best emerging and established companies in the Washington Tech Industry. The evening will feature a finalist company technology showcase and a variety of coffee, chocolate, and wine samples from local companies. More than 800 attendees are expected to be present at the celebration. Public online voting for Technology Leader of Tomorrow Scholarships will open February 3^rd on the WTIA site.

We congratulate the 2010 finalists and look forward to unveiling the winners on March 4^th. REGISTER NOW!

Beyond the iPhone

Mobile applications are a cutting-edge way to extend your brand’s reach into the hands of consumers 24/7. Increase loyalty and customer engagement by developing a targeted and effective mobile application. Learn the basics about mobile applications by reading our white paper Beyond the iPhone: Engaging Customers with Mobile Applications.

If you’re considering a mobile initiative for Q1-2010, now is the time to get started. The white paper covers: Venturing into Mobile Application Development, Typical Problems to Avoid, and Developing the Solution. Reaxion is a Seattle-based mobile application development company focused on start-to-finish project management and cost-effective development. Download Beyond the iPhone: Engaging Customers with Mobile Applications.

MORE INFORMATION