How VinoBarrel Is Balancing Tradition and Innovation in the Wine Industry
Image: Unsplash/ Kym Ellis
Seth Lytle, CEO of VinoBarrel, was celebrating a friend's birthday in the lush vineyards of Napa Valley while contemplating a life-altering decision. He was up for a big promotion, and it seemed like an easy choice from the outside.
However, a greater question circled his mind: "What am I really meant to do?"
To figure out his future, Lytle looked towards his childhood, where he grew up surrounded by the craft of winemaking. His grandfather is an Italian immigrant and has spent the past sixty years making wine, teaching Lytle not only the process but also wine's power to bring people together.
Additionally, he had a background in systems engineering. A Georgia Tech graduate, he was fascinated with discovering new ways to shorten previously tedious processes. However, in his day job, he felt most fulfilled when he got to use his innovation skills to connect with others. "I had the greatest passion and came alive when I got to create experiences at conferences," said Lytle.
Lytle, along with Marshall Knox (VPO) and Torey Mercurio (Principal Engineer), began to develop an idea for a product that combined everything he was passionate about. "I enjoy wine. I'd been around it. I like bringing people together. I like creating efficient systems."
In 2022, Lytle turned down the promotion and founded VinoBarrel, a decision that would transform his history into his legacy. Since then, VinoBarrel has patented its design, partnered with various wineries and high-class venues, and joined ATDC's Accelerate Portfolio.
The product is the world's first sophisticated and sustainable wine preservation and pouring system, simplifying the process of serving wine to customers in venues such as resorts. Each barrel system can support two kegs, and using IoT (Internet of Things) sensors, the barrels can preserve, chill, and aerate over 250 full-sized glasses of wine. Each barrel also features a POS (point of sale) system with a screen, allowing consumers to purchase and receive their drink through a single piece of technology.
One advantage of adopting VinoBarrel, especially for wineries, is the product's ability to streamline the process of serving wine for staff members at partnering venues. "I would go to some of these wineries, and the lines would be unbelievably long and frustrating. And you must decide — am I going to wait in that long line?" explained Lytle. However, when venues have a barrel system, not only do they not lose the opportunity for a customer, but the staff member to focus less on the physical task of pouring wine and more on creating a human connection.
Another aim of the switch from bottles to barrels is the product's sustainability effort. According to VinoBarrel's website, most of the industry's carbon emissions result from packaging and transporting the product. Although bottles work best for aging some wine, much of it is pressed, fermented, and aged in barrels and stainless steel containers. VinoBarrel emphasizes that when wine is transported in kegs instead of bottles for higher volume services, 76% of its carbon emissions are reduced.
However, the bulk of the tech within the barrel is intentionally concealed. "It's technology that's hidden. And it honors winemaking's craft, history, and artisanship by utilizing materials that create that heart and psychological connection," said Lytle. Using the design to appeal to customers' hearts is meticulously present in everything from the copper spout, which is a reference to Lytle's father, an artist and plumber, to the POS screen, which wineries can customize to play videos of the winemaking process. "Everything that I've tried to do in any experience I've created was to be authentic and do something representative, to connect with feelings as much as with your head," said Lytle.
Although VinoBarrel is making strides within the wine industry, the journey has not always been easy. In addition to the initial fear accompanying starting a startup, the company faced pushback. According to Lytle, the wine industry is not always welcome to change. While the industry has made great efforts to become more sustainable in recent years, it is reluctant to let go of the traditional bottle. However, this pushback inspired VinoBarrel to create a pivot in their target consumer. "I had to find people who would understand that this is an augmentation tool. It is absolutely not meant to take away jobs. It's meant to help with surges," explained Lytle.
Another challenge Lytle faced was finding a community within the startup world. "It's not easy to be an entrepreneur at all. It can feel very lonely for sure at times," said Lytle. However, he has found community in Tech Square, an experience he believes will increase with the startup's addition to ATDC.
Despite the challenges, VinoBarrel is on an upward trajectory. One of their most recent ventures, the creation of the VinoBarrel Wine Club, is a testament to this. The club is an opportunity for members to join a community of wine lovers, try new wines across Atlanta, and receive complimentary daily pours. After only two weeks, the Wine Club has already gained 173 members through the sign-up process, which requires customers to interact with one of the barrel systems. Lytle feels that the startup is the purpose he was searching for when he made his decision in Napa Valley. "I don't want to regret not having pursued something that is truly great for this world. And it's not just the product — it's about bringing people together."
For other entrepreneurs choosing whether or not to follow the call to innovate, Lytle offers this advice: "Pursue something meaningful to [you] — not just about dollars. And take pivots, but don't sacrifice who you are or your true worth."