California Keg Player Free Flow Wines Looking To Boost Portfolio And National Reach
January 27, 2015Free Flow Wines, the Napa, California-based wine-on-tap player, is now eyeing an East Coast facility as its business rapidly expands. Last year, Free Flow shipped 160,000 nine-liter case equivalents in kegs. The company has doubled its sales volume in each of the past three years, and it expects similar growth this year.
Founded in 2009 by wine industry veterans Jordan Kivelstadt and Dan Donahoe, Free Flow now has about 220 premium wine brands in its portfolio. Its kegs, which hold the equivalent of 26 750-ml. bottles, are sold in roughly 3,500 restaurants, hotels, sports and entertainment venues nationwide. Free Flow now has 80,000 reusable stainless steel kegs in its fleet across the United States, up from 50,000 kegs a year ago.
Thus far, Free Flow’s business has centered on independent, chef-driven restaurants, which comprise about 85% of its client base. This year, the company will aim to make a significant impact in national accounts. It currently works with hospitality operators including Marriott, Starwood Hotels and Resorts and Delaware North, as well as restaurants ranging from Shake Shack to Thomas Keller’s Bouchon.
Another key goal this year will be diversification into the import segment, which now makes up less than 10% of Free Flow’s business. “As we continue to grow and build a stronger presence on the East Coast, we’re seeing higher demand for imports,” Kivelstadt says. “We cap out at around a $33-retail bottle, because not many restaurants will spend more than that for a by-the-glass wine.”
This spring, Free Flow will launch its first-ever premium sparkling kegged wine, following the yearlong development of a special system for maintaining sparkling wines in keg format. The company is also branching out with a new draft service division callled TAP’D Draft Solutions, which will provide wholesale clients with draft system design, installation, maintenance and line cleaning support. Following the acquisition of San Francisco-based Cuff’s Tap Services last July, the company now also has on-tap options beyond wine—including cocktails, coffee and cider.
Among Free Flow’s biggest markets, California, Texas and New York are leading the way, while the Denver and Las Vegas markets are also doing well. After a legislative battle in Florida in 2013, kegged wines are now available in the state, which has since grown to become the company’s sixth-largest market.
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