Crurated is an online wine retailer that connects its members with the world’s top producers, using a unique blockchain-based verification model to guarantee the authenticity and provenance of their purchases.

After launching in London in 2021, the business is now expanding into Hong Kong, Singapore, and Thailand, withfounder, Alfonso de Gaetano, set to host in-person events in November, along with Charles Lachaux, the winemaker at Domaine Arnoux-Lachaux winemaker, one of the most talked-about producers in recent years, which recently agreed to join the platform. Members will be invited to attend and enjoy pairings of wine and food from top chefs.

“From day one, we wanted to establish a global distribution base. We are based in the UK, our warehouse is in Burgundy, and from there we ship our wines to all our clients. Around 40 per cent of our business comes from Asia,” De Gaetano told Inside Retail.

Currently the company has around 60 employees, but he is looking to build Crurated’s presence in key markets, such as Hong Kong, in order to better serve its customers.

“Our clients are generally excited about our product range. We have mainly focused on wines from Italy and France, but we are expanding into ones from Spain too. Having said that, wines from Burgundy, Bordeaux, Barolo and Tuscany are bestsellers,” he noted.

The company has strong relationships with producers in Burgundy, which, according to De Gaetano, has been the main driver of the fine wine market in Asia for the past seven years.

“We are going to be ramping up events in Asia soon, so that our clients can meet the producers, learn about each wine philosophy and try some wines directly from the source. It’s important for us to make this next move in establishing this relationship in Asia,” he said.

Why blockchain?

One of the company’s key differentiators is its use of blockchain, which has always been part of the business model. From day one, De Gaetono said he knew that blockchain would fundamentally change the way fine wine is distributed.

“This is true, not only for consumers, but also for restaurants. We launched a pilot program with only the best restaurants in Italy, most of them two or three Michelin starred ones. Our platform and curation made an instant impact,” he added.

He went on to say that the company only buys bottles of wine directly from producers. 

“When a client is in a restaurant, they just have to tap on the bottle to reveal the chain of events. From production, to shipment and delivery. This makes a big difference not only for the client but also for the restaurant. It’s all about trust, transparency and provenance,” he stressed.

According to him, the provenance of wines has long caused frustration in the marketplace, especially regarding wines bought from auction houses. This is why blockchain is so important, as no one can manipulate the information. 

“This is the real value of blockchain, we control the information, there is no manipulation, and our database ensures there is proof of the product’s chain of events in a verified manner. So trust is now restored,” he elaborated.

Google’s impact

De Gaetano, who spent more than a decade working at Google, started Crurated out of a sense of frustration at not being able to access some of the world’s top producers, and disappointment in the poor quality of wines bought at auction.

“One of the key principles I learnt at Google was – don’t just create technology just for the sake of building technology. Make it useful, that’s key. If you think about what we’ve done with blockchain, it’s absolutely useful,” he stressed.

In its first year of business, Crurated reportedly had revenues of around 5.8 million euros (US$6.3 million), and as of May 2023, it had 14.2 million euros (US$15.5 million). So things are definitely going in the right direction.

“When I was a director at Google, I was looking after super talented teams across 100 markets, and what I really learnt was how to build inclusive teams that could scale businesses really quickly. So far, things are looking good,” he added.

He went on to say that in order to be a good leader, one needs to practise inclusion. The importance of ‘psychological safety’ and empowerment is critical. Mutual respect, accountability and constructive feedback all play a role in this.

The future

Another game-changing aspect of Crurated’s approach to the wine industry is its live auction feature, where it essentially democratises the process of bidding for highly sought-after wines and limited-edition collections.

“One of the problems in the world of wine is that getting an allocation for purchasing select wines is almost impossible for newbies who don’t have the contacts in the industry. Even if they do eventually get a chance, the prices will be crazy in the secondary markets,” he explained.

This is where Crurated is changing the game. Young collectors can get into the platform and submit bids for wines, and access is democratised. At the end of a week-long bidding process, the highest bidders get to enjoy the spoils of victory.

“Say we have 100 lots, going for 6000 euros each, bids can range from 6300 to 6600 in a week, and once we finalise the highest bids, the lots get distributed. So, everyone has a chance to get a shot at owning some incredible wines,” he said.

De Gaetano revealed that the company will be expanding into the spirits marketplace later this year, in response to consumer demand. It expects to launch a spirits section on the platform in October. 

“We just recently showed a demo to our investors, and all I can say for now is that what we have is a game changer. Something never done before. I can’t disclose anything yet, but stay tuned to this space,” he concluded.