FOR IMMEDIATE RELEASE
April 2, 2007
Inertia Beverage Group Raises $8 Million in Series B Financing
Led By Allegis Capital and Sid R. Bass Associates
NAPA, CALIF., April 2, 2007 — Inertia Beverage Group, which provides an integrated sales and marketing platform for wineries conducting direct-to consumer-and direct-to-trade wine sales, announced today that it has raised $8 million in new equity capital through a Series B financing led by Allegis Capital and Sid R. Bass Associates. The new financing comes in the wake of Inertia's recent roll-out of its direct-to-trade system allowing wineries to present their wines to restaurants, retailers and consumers, in an online, fully compliant environment.
"The wine industry is experiencing a fundamental change in its distribution model as wineries push for increased direct sales to their consumer and trade customers. As with other industries with which we have been involved, the availability of the internet as a business platform provides a foundation for the success of this transition," explained Bob Ackerman, Managing Director and Founder of Allegis Capital. "Our confidence in Inertia comes from its clear understanding of the integrated solution requirements of this market as well as its demonstrated leadership in the marketplace and customer traction."
Explosion of Winery Direct Sales Drives Opportunities
Winery direct sales to consumers have exploded over the past five years leaving many wineries across the globe with the challenge of managing data and customers coming in from various points of purchase. Inertia provides both large multi-national wine companies and small boutique wineries with a scalable on-line platform that allows them to manage all customer interactions, data and sales tools.
"Allegis Capital and Sid R. Bass Associates understand the tremendous growth and potential associated with direct sales in the wine industry," said Inertia CEO Paul Mabray. "Their support and demonstrated e-commerce expertise put IBG in a strong position to increase our technological lead in direct sales services and to accelerate our plans to be the engine that fuels the expansion of the direct wine sales channel."
"Inertia has built an impressive, fully integrated software as service platform that solves the wineries most critical points of pain — marketing and selling directly to consumers and the trade to grow sales, increase profitability, control their brands, compliance, and gain access to sophisticated online marketing programs," said Paul Pappajohn, Partner at Sid R. Bass Associates.
As part of the transaction, Bob Ackerman and Paul Pappajohn have joined the Inertia Beverage Board of Directors.
About Inertia Beverage Group
Inertia Beverage Group, based in Napa, California, is the premier provider of web-based technology used by wineries to manage direct sales and marketing. Inertia's REthink Engine technology is at the heart of the direct sales and marketing efforts of more than 300 wine brands. Inertia's technology and services affords wineries an integrated platform from which they can manage customer data, online sales to consumers and the trade, on-line content, product fulfillment, wine clubs and e-mail based sales campaigns. More information about Inertia Beverage Group is available at www.inertiabev.com.
About Allegis Capital
Allegis Capital is a seed and early-stage venture capital with over $600M under active management and an investment focus on enabling technologies and infrastructure in information technology and the Digital Economy. Allegis combines the extensive operating and venture investment experience of its partners in working with entrepreneurs and strategic corporate partners to build successful businesses in network communications and enterprise solutions as well as digital media, electronic commerce and Internet infrastructure technologies. Allegis maintains offices in Silicon Valley and Los Angeles.
About Sid R. Bass Associates
Sid R. Bass Associates is a venture capital and value added investor, providing capital and access to resources and industry contacts to high growth early-stage and late-stage companies. With $300 million in committed capital, the firm focuses its investments in the software, communications, wireless, security, storage, network infrastructure, media, and consumer and business services sectors. With a long term horizon, the firm partners with seasoned entrepreneurs to grow successful growth businesses through all phases of a company's development.
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Contact:
Tom Wark
Wark Communications
707-933-9313
tom@warkcommunications.com
Paul Mabray
Inertia Beverage Group
707-227-2187
paul@inertiabev.com
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