140: How Napa’s Grounded Wine Co. Is Growing 28% YOY With Josh Phelps

How do you build a wine brand that belongs on both Target shelves and Soho House wine lists? Grounded Wine Co. has grown to more than 80K 9L cases, with company volume up about 28% year over year. Its core Cabernet and Sauvignon Blanc launched during COVID with a six-month Target exclusive. Today, its business is split almost exactly 50-50 between on- and off-premise -- and its Sauvignon Blanc is the top-selling wine across Soho House’s North American program. In this episode, Josh Phelps, founder, CEO, and winemaker of Grounded Wine Co., unpacks how an independent producer is building a national business around accessible wines. The strategy brings together distinctive packaging, winemaking expertise, and prices that work for consumers and hospitality buyers. But execution matters just as much. With limited resources, Josh organized his sales team around channel expertise, developed national-account relationships, and worked with distributors to support placements across markets. He’s also candid about what it takes to make the economics work. A Sauvignon Blanc selling for roughly $12 to $15 a bottle needs scale, tight cost controls, and repeat purchases.  We explore: • How Grounded expanded from a retail launch into national restaurant and hotel programs.• Why Josh built his small sales team around on- and off-premise expertise.• How distributor fit shapes a brand’s opportunity -- and why enthusiasm needs to go both ways.• What it takes to build a profitable business at an accessible price point.• Why Grounded discontinued its 30K-case Space Age Rosé Spritz and doubled down on its core wines. For drinks entrepreneurs navigating pricing, distribution, and portfolio decisions, this conversation offers a candid look at building growth across channels -- and deciding which opportunities deserve your resources. For the latest updates, follow us: Business of Drinks website (sign up for our newsletter!) Business of Drinks YouTube Business of Drinks LinkedIn Instagram @bizofdrinks Erica Duecy, co-host: Erica Duecy is founder and co-host of Business of Drinks and one of the drinks industry’s most accomplished digital and content strategists. She runs the consultancy and advisory arm of Business of Drinks and has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies. Erica Duecy LinkedIn Instagram @ericaduecy Scott Rosenbaum, co-host: Scott Rosenbaum is co-host of Business of Drinks and a veteran strategist and analyst with deep experience building drinks portfolios. Most recently, he was the Portfolio Development Director at Distill Ventures. Prior to that, he was the Vice President of T. Edward Wines & Spirits, a New York-based importer and distributor. Scott Rosenbaum LinkedIn Subscribe to the Business of Drinks channel for more insights on how brands, retailers, and operators are unlocking growth across beverages. And please rate and review us. Your support helps us reach new listeners. Thank you!