Here's how NFT Platforms will Transform the Wine Industry
There’s recently been a flurry of announcements in the Wine NFT space. In early June, Winechain.co (relation to winechain.pt unknown) announced its ambition to “create direct links with new generations of wine consumers around the world”. Meanwhile, the “Wine Bottle Club” announced its latest mint day would also take place in June. I’ve been critical of NFT platforms announcements in the past. I however believe the wine industry is a good target for such technologies. Here’s why in less than 300 words.
Wines do not travel well. Shaking may not impact the quality, but light and temperature changes sure will. Being able to age, own and trade a prestigious cru without moving it opens up new commercial avenues for all stakeholders.
Wines are an asset class. Having a bottle linked to a token would allow people to buy bottles they believe will increase in value in time, and resell them when they deem the time right. This may already be the case, but…
Using a smart contract ensuring a percentage of each secondary sale is allocated to the producers will benefit small producers. It will allow them to increase their revenues, and perhaps fund expansions.
Speaking of expansions : having an NFT platform lets people from all over the world discover, buy and trade wines. Some, to drink, others to make a quick buck through their knowledge. This would open new markets to producers, something the industry struggles with due to supply chain constraints.
Using NFTs means having a wine cellar in your phone / crypto wallet. This makes it easier to manage, something people with thousands of bottles might struggle to do today.
Finally, using tokens will open secondary revenue streams for producers. They could give token holders access to unique events, experiences and benefits. This will create communities, enhance loyalty, and make customers more likely to purchase from a producer again.
Obviously, NFTs will only be worth something to prestigious Chateaux; don’t expect to use one to purchase a gaz station wine cooler.
One caveat to the above. While NFTs can be used to democratize access to great wines, putting floor prices too high will do the exact opposite. Rich people will attend rich people events; they will buy, trade and drink rich people wines, and yet another echo chamber will be created in an industry ripe with them.
Only time will tell if this will come to pass. In the meantime, the artwork looks mighty cool.
Good luck out there.