January Wine Club Sales: Why They Happen

If you’ve signed up for any wine club emails, you already have seen the offers: sale, after sale, after sale, after sale. You might be wondering why.

To start, you have to understand there’s one single rule in the wine club game in December: sell as much as you can. A corollary is to ship it i fast. Both of those depend on having the wine in stock.

Sure, some people want to have the “perfect” Christmas season and adjourn around the 23rd, with a few stray bottles sitting around. Why the 23rd? UPS and Fedex don’t pick up on Christmas Eve and even between Christmas and New Year’s, pickups are tough to come by for smaller accounts (and all wine clubs are smaller accounts in the grand scheme of things).

Anyway, so most wine clubs have a pretty solid number of cases, or pallets sitting around. They want/need to get rid of them ASAP. Why? Because of taxes.

The way most wine clubs and frankly all retailers pay taxes is based on inventory counts. Taking a bottle of wine from one calendar year to another, makes it count as income. It’s stupid I know, but ecommerce founders aren’t writing the tax code. So your wine club is going to be very, very interested in moving as much as possible right before they have to file their taxes.