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Great Article >> MXMG is in one of the oldest industries on planet Earth. MXMG’s innovative alternative packaging method could change the wine industry forever and could be to the wine industry what MP3s were to CDs/vinyls in the record industry.

This company is part of the fast-growing alternative package wine category, a $5.4 billion market with a 20% annual compounded growth rate.

MXMG or Maxima Group Inc.’s Vinium™ is a super premium, environmentally sensitive winery, located in California's Napa Valley, which is ushering in a new era of high quality and sustainability for the American wine industry. 

Currently priced at under a penny, MXMG could be one of those, “Wish I got in early” scenarios. Their product has been featured on Good Day LA and sold in Whole Foods which lead to a deal with Southern Wine and Spirits, the largest wine and spirits distributor in the U.S. with operations in 37 states!

MXMG was founded by Richard Cardoza, a well-known industry veteran in retail sales of wines and spirits, and renowned winemaker George Bursick, best known for his previous winemaking stints at Ferrari-Carano and J Vineyards. Mr. Bursick has the distinction of having made the #1 wine in the world twice, a feat that has never been duplicated.

Among other things, Vinium is pioneering a dramatic shift in wine packaging so that every wine lover in the U.S. can afford to drink super-premium wines. Vinium sources the finest wines available, blends them to perfection, and packages them in a unique cost saving, eco-friendly manner that maintains freshness much longer than standard bottling. These savings are passed on to the consumer, giving Vinium both a unique marketing niche and a distinct competitive pricing advantage. 

Exciting words from MXMG and Vinium executives earlier in the Fall:

Mr. Cordoza, President of Vinium, stated, "We are very excited to make this announcement. Maxima Group can provide the resources we need for expansion, and we look forward to using our combined resources to quickly scale up production and develop a nationwide distribution system much sooner than we originally anticipated."

Maxima Group CEO Mirek Gorny added, "This acquisition marks a new day for our company and we are very excited about the Vinium products, management team and marketing plan, and believe that this acquisition will lead to greatly accelerated growth for both companies. Much more information about these will be released over the coming weeks.”

Read more Here:

http://finance.yahoo.com/news/maxima-group-inc-acquires-city-120000411.html

Business Summary 

(MXMG - Maxima Group, Inc.)

http://viniumwine.com/

Maxima Group, Inc. or MXMG, is a holding company engaging through their wholly owned subsidiary, City Vines, LLC. that markets the brand Vinium Wines. On October 19, 2015, MXMG announced it’s acquisition of City Vines, LLC in a stock-for-stock transaction. City Vines, LLC, which does business under the name of Vinium hopes to provide a premium experience more recently announcing future additions of wine experts and professionals to their executive board.

Vinium Wines™ has initiated a 3-tier marketing and distribution model for the U.S. market, with expectation of international distribution beginning in late 2016. The U.S. model consists of national wholesale distribution to retail stores, Direct-to Consumer sales and Wine-by-the-glass restaurant sales.

Vinium's Wholesale Distribution model was initiated with a very successful 4-month trial run at 20 Whole Foods Markets and wine bars in Southern California ending in October 2015. This lead to a distribution agreement with Southern Wine and Spirits, the largest wine and spirits distributor in the U.S. with operations in 37 states. 

Discussions are now underway for a planned national rollout beginning in California and other south west states while quickly expanding to the east coast. Vinium executives already have established relationships with key distributors in the remaining 37 states as well. The U.S. alternative package wine category is a $5.4 billion industry alone and it is growing at a 20% annual rate.

Vinium's Direct-to Consumer (DTC) channel has been underway since early 2015 and is expected to be a very successful complement to its wholesale distribution. Vinium has upscale tasting rooms in Napa Valley as well as Laguna Beach, CA, and has hosted dozens of in-store tasting events, wine seminars, and high-profile wine dinners with charity events in Southern California. The company plans to expand these operations in tandem with its national distribution rollout. U.S. DTC sales of wine rose in 2014 by 15% to $1.9 billion, accounting for 3.9 million cases, and is expected to grow at 14% per annum rate.

The company's third distribution channel will be restaurant sales of Wine-by-the-Glass, which is showing explosive growth both in sales volume and profitability. As the first provider of affordable "super-premium" wines priced up to 50% lower than its competitors and delivered in cost-saving eco-friendly packaging that will retain freshness for up to 6 weeks after opening. Vinium is well-positioned to become a major leader in this segment of the industry.

Vinium Wines is a super premium, environmentally-sensitive winery, located in California's Napa Valley that provides a prestigious, cost effective, high quality wine that is packaged in eco-friendly wooden casks rather than heavy glass bottles with corks and lead capsules. With distribution agreements with the largest wholesale alcoholic beverage distributor in the United States, Southern Wine and Spirits, Vinium plans to become a dominating competitor in the alternative packaging, 5.4 billion dollar wine industry.

You can read more from their recent press releases here .

Sustainability Highlight

VINIUM™ wines are packaged in 3.0 Liter and 9.0 Liter AirLock pouch (equivalent to 4 and 12 bottles) and shipped directly to your home. Their innovative packaging and direct delivery eliminate the CO2 emissions of the traditional wine process by up to 90%. Catering to the growing U.S. wine consumption, VINIUM™ answers demands for high quality and value, while also addressing the very important needs of our planet. Bottles and corks are not necessary for wine that do not require aging. In the United States 94% of wines are consumed within 48 hours of purchasing.

In 2014 U.S. consumers drank a whopping 400 million cases of wine or 4.8 billion bottles. The EPA estimates that 80 percent of those wine bottles will end up in U.S. landfills.

Because production of a typical 750ml wine bottle and cork emits about 15 oz of CO2 into the earths atmosphere, the discarded bottle emissions equal approximately 4,000,000,000 pounds of greenhouse gasses or the equivalent gases from 285,000 automobiles each year or the emissions from the electricity use of 185,000 homes for a year.

The inevitable transition from wine bottles to more sustainable wine packaging is as unstoppable as vinyl records through to Tapes/CD’s and now MP3’s. VINIUM™ makes it fashionable and a value to buy wine in their sustainable packaging, changing wine buyer behavior for future generations.

Read More: http://viniumwine.com/about/

Market Outlook

Demand for wine packaging in the US is projected to reach $2.9 billion in 2019 and other estimates put the global trend closer to $6 billion.

The global wine market is forecast to be worth US $303 billion by 2016, an increase of close to 18% since 2011. Over the past 20 years, the New World wine sector has increased from just 3% of global wine exports in the late 1980s to more than 25% of the global market.

Growth will benefit from continued favorable gains in domestic wine consumption and production and increases in disposable personal income. In the US, wine is becoming more prevalent as an accompaniment to meals at home rather than a beverage consumed at restaurants or special events. Opportunities for related packaging will benefit from the importance of packaging both as a marketing tool and for its ability to enhance the perception of wine quality.

To maintain a premium in the market, the wine industry must deliver consistently high quality products with an increasing emphasis on environmental sustainability. New wine styles and flavours will allow companies to maintain their position with existing markets as well as to gain entry into emerging markets such as Asia.

Glass bottles are by far the leading wine container type but glass will continue to lose market share to a growing array of alternative package formats. In addition to bag-in-box packaging, other containers that have established a presence include plastic bottles, plastic cups and goblets, aseptic cartons, pouches, and cans. These alternatives are growing in popularity due to performance features, product differentiation capability, and appeal to younger consumers, who are less attached to wine traditions than are older consumers.

Bag-in-box packaging will register solid increases due to expanded 1.5- and 3-liter premium offerings. The recent adoption of bag-in-box by premium wine brands, particularly in 3-liter sizes, is helping to mitigate the stigma of "boxed wine" as inferior in quality to bottled wine. Bag-in-box wines offer a variety of benefits for consumers, including lower cost per unit of volume, extended freshness, and easier dispensing and storage. An additional advantage of bag-in-box containers is their large surface area, which offers significantly more space for colorful graphics and text than do bottle labels.

Cork demand will be sustained by the entrenched position of glass bottles in the wine industry, as well as their appeal to traditionalists and wine connoisseurs. Moreover, there is a general expectation of cork with premium wines as a symbol of prestige. Cork demand will also benefit from the stronger cultural preference for corks in the US than in many other countries, though growing competition from alternative packaging formats that do not utilize corks will limit advances. Technical corks, such as micro-agglomerated and twin disk types, account for the majority of cork demand and will record more rapid gains than full natural corks. Technical corks are priced competitively with synthetic corks, offer many of the advantages of natural cork, and have been instrumental in helping cork to recapture some of the share lost to synthetic corks during the past decade.

More on the articles here: 

http://www.plantandfood.co.nz/growingfutures/wine

http://www.prnewswire.com/news-releases/us-wine-packaging-market-worth-29-billion-in-2019-and-global-wine-packaging-industry-growing-at-253-cagr-to-2019-523460371.html