Fresh Vine Wine Inc., a maker of low-carb wines whose founders include a Minnesota businessman and two TV actresses, raised about $22 million in an IPO on Tuesday — and saw its share price promptly sour.
The company, which has its corporate office in Plymouth, became the eighth Minnesota firm this year to complete an initial public offering. That makes 2021 the busiest year for IPOs by Minnesota businesses in more than two decades.
Late Monday, Fresh Vine announced an initial price for its 2.2 million shares of $10. But Fresh Vine shares closed Tuesday afternoon at $7.05, down 30% on its first day of trading. It traded as low as $6.81.
Founded in 2019, Fresh Vine's low-carb, low-calorie wines are produced in Napa Valley, Calif. — not the Minneapolis suburbs — by a contract firm.
Representatives of Fresh Vine could not be reached for comment Tuesday.
Actresses Nina Dobrev and Julianne Hough are co-founders and have played an active role in the firm's marketing. Dobrev is known for "The Vampire Diaries" TV series; Hough has been both a dancer and judge on "Dancing With the Stars."
They've helped the company place Fresh Vine's wines with retailers as varied as Total Wine, Hy-Vee and Walgreens in 32 states. But the company is still small.
For the first nine months of 2021, Fresh Vine reported revenue of $1.05 million and a net loss of $8.1 million. Startups typically report several years of losses while the business is being established.
