Coming Soon: Wine From Your Favorite Social Media Creators

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So, you're a creator for social media sites like Instagram, TikTok, or YouTube, and you're selling things like T-shirts and mugs but would love to sell premium products, like say, wine.

Believe it or not, a recently announced merger agreement will allow Amaze Software Inc.'s 14 million creators and brands to do just that. Amaze, whose products include Amaze Studio, Spring by Amaze, and Teespring Marketplace, will merge with Fresh Vine Wine Inc. (VINE:NYSE American) pursuant to the definitive agreement.

In addition to bringing Amaze public, the companies said the merger marks "a pivotal moment for the creator economy."

Amaze Chief Executive Officer Aaron Day told Streetwise Reports that the company regularly asks its creators what they want to sell in their online stores, and wine and spirits are always at the top of their list.

"What we do really well is we provide enormous amounts of distribution for products and brands in our platform. So, merging with Fresh Vine Wine gives us the ability to add a whole new category into our product catalog. And it gives us a distribution channel to accelerate Fresh Vine Wine."

By joining forces with Fresh Vine Wine, Amaze will introduce wine and spirits to its product catalog, enabling creators to launch their own branded selections and connect with their audiences in an innovative way, the release said.

"This expansion into premium products allows creators to deepen fan connections and unlock new revenue streams by offering exclusive, custom-branded items that resonate with their communities," the release continued.

Approval of the merger from the U.S. Securities and Exchange Commission (SEC) could take several months to process, said Day, who is expected to assume the role of CEO of the combined entity.

Helping Creators Build Sustainable Businesses

Since its inception in 2021, Amaze said it has been driven by a mission to support creators in building sustainable businesses, fostering community connections, and monetizing their passions.

"At Amaze, we're fully committed to the democratization of commerce," Day said. "Every day, thousands of people sign up to build their brands and monetize their communities through our platform. By merging with Fresh Vine Wine, we're offering creators a unique opportunity to expand their revenue streams with premium, highly sought-after products like wine and spirits, turning their dreams of sustainable revenue and brand ownership into reality."

Fresh Vine Wine is a producer of lower-carb, lower-calorie premium wines in the United States. It positions its core brand lineup as an affordable luxury, retailing between US$18.99 and US$24.99 per bottle. Fresh Vine Wine's varietals currently include Cabernet Sauvignon, Chardonnay, Pinot Noir, Rosé, Sauvignon Blanc, Sparkling Rosé, and a limited Reserve Napa Cabernet Sauvignon. All varietals are produced and bottled in Napa, California. The company also already has Federal Trade Commission (FTC) to ship wine to consumers.

Amaze's services to creators include e-commerce development, website design and development, social media marketing, search engine optimization (SEO), and digital marketing and advertising. The company also offers account management, product cataloging, inventory and order management, and a packaging solution.

'What Don't They Do?'

The company's Amaze Studio is a business-to-business offering that "allows agencies and service providers to create very quick selling pages through a design platform that integrates into social media," such as TikTok. Amaze also operates Teespring Marketplace and Spring by Amaze, a social commerce platform that allows people to create and sell their custom products on social media.

"Amaze recently announced strategic partnerships with Adobe and Pietra Studios, as well as integrations with major social media platforms including YouTube, TikTok Shops, Twitch, Discord, OnlyFans, and LinkTree," the company said. "High-profile creators such as Jake Paul, Daniel Tosh, and Star Wars Theory leverage the Amaze platform for brand-building and monetization."

"What don't they do?" independent investor Michael Khorassani, who owns Fresh Vine stock, said of Amaze in an interview with Streetwise.

If you want to create something like a coffee cup for your viewers, "they can bring all of that together on the same platform," including helping you design and make the product, bringing an audience for it, and instantly allowing you to sell it, Khorassani said. This also includes apparel and accessories, digital content, and custom product lines.

"They're kind of like Shopify meets YouTube, the right combination of those two platforms," he said. "As an investor, I think this could be a unicorn if they continue to grow their business."

The merger with Fresh Vine Wine "allows creators to deepen fan connections and unlock new revenue streams by offering exclusive, custom-branded items that resonate with their communities," the companies said.

The Catalyst: Pandemic Leads to Online, Social Media Purchases

According to a report by Grand View Research, the market size for U.S. social commerce was US$89.11 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 29.2% from 2023 to 2030.

According to researchers, the growth began during the pandemic as consumers took advantage of greater convenience in making purchases online.

The report said people in the United States spend more time on social media platforms than other countries, with studies indicating that the average person probably spends over two hours daily, which is one of the elements causing this trend.

"In the United States, users spend an average of 25.6 hours monthly on the TikTok platform, followed by YouTube and Facebook," Grand View said. "Due to their ability to make purchases more participatory than traditional e-commerce platforms, these networks serve as effective marketing tools, fueling a steady rise in online purchasing through social media platforms."

Social media sites are drawing companies of all sizes because "they offer a way to create individualized client journeys through social interactions," the researchers said.

Another report by Grand View estimated the premium spirts market size at US$215.47 billion in 2023. It's expected to grow at a CAGR of 9.7% from 2024 to 2030.

"The growing middle-class population, particularly in emerging markets like Asia Pacific and Africa, has led to increased disposable income, which enables consumers to opt for higher-priced, premium options," researchers wrote. "In addition, the expansion of e-commerce and online retail has made premium spirits more accessible, allowing consumers to explore and purchase a wide variety of brands and products with ease."

Ownership and Share Structure

Amaze is currently a private company. About 37% of Fresh Vine Wine is owned by insiders and management, and about 1% by institutions. The rest is retail.

Top Fresh Vine investors include Rick Nechio with 9.85%, Nina Dobrev with 9.08%, Julianne Hough with 7.56%, and Stephen Edgar Apolant with 5%, Refinitiv reported.

Fresh Vine has 15.98 million shares outstanding a market cap of US$9.55 million. It trades in a 52-week range of US$0.25 and US$1.25.