SOURCE: 800 Commerce, Inc.

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October 28, 2015 08:30 ET

800 Commerce Inc. Announces Letter of Intent to Acquire Winery Estate in Paso Robles, California to Include Brand, Bed and Breakfast, Premium Inventory, Wine Club, Retail and e-Commerce Sales

LOS ANGELES, CA--(Marketwired - October 28, 2015) - 800 Commerce Inc. (OTC PINK: ETHG), a fully reporting company under the symbol (ETHG) and provider of merchant processing and commerce solutions, today announced that the Company has signed a Letter Of Intent to acquire all the assets of a seasoned winery operation, including over 80 acres of agricultural land, bed and breakfast ,premium wine brands, operating wine club, retail and e-commerce sales located in Paso Robles, California.

The expected acquisition of the winery and facility, which is anticipated to close in November, includes right, title and interest to all assets including all buildings, improvements, machinery, inventory and equipment. The new acquisition will offer full integration of domestic wine brands, bottling and sales operations.

Located in Paso Robles, California equally between Los Angeles and San Francisco, the property will create a unique twist of high quality wine brands and blend both health and wellness to the American wine industry. Recent reports from Forbes Wine Trends and Predictions from Silicone Valley Bank and Frederickson, J. State of the Industry pointed to the fast-growing alternative package wine category alone is expected to become a $5.4 billion market. Our new products and wellness concepts for the Company will be done in an eco-friendly manner that maintains freshness much longer than standard bottling for some of our new releases. This model of retail, e-commerce and wine club sales allowing members to stay on property will create both a unique marketing niche and a distinct competitive advantage for increased profitability within the wine and beverage industry.

B. Michael Friedman, CEO of 800 Commerce Inc., stated, "We wanted to bring an established business and acquisition for our Company that would serve as a foundation of real assets and create opportunity for our Company and shareholders. The wine and wellness industries will provide us with means to manage the supply of our own brands while also providing the parent company with new and diverse revenue streams through our existing e-commerce and mobile platform models. This acquisition marks a new day and model for our company and we are very excited about the management team and marketing plan with our partner Company, and believe that this acquisition will lead to greatly accelerated growth for both companies. Additional information related to the merger and acquisition will be released over the coming weeks," further stated Friedman.

Stats at a Glance

  • California wine sales in the U.S. grew 6.7% in value and 4.4% in volume in 2014
  • Estimated retail value of 2014 California wine sales in the U.S. was $24.6 billion
  • Total California wine sales (in U.S. and exports) grew 3.7 percent in volume
  • 2014 represents the 22nd consecutive year of growth for all wine sales in the U.S.
  • The U.S. has been the world's largest wine market since 2010
  • "Eco" Wines slowly gaining more attention with 16% of US wine consumers now looking for these labels. Potential increases for sustainable, organic, and biodynamic wine as consumers grow more concerned about environmental issues.
  • Wine Apps are growing in popularity with up to 36% of US consumers using them to check prices and reviews before purchase.

Wineries are making direct-to-consumer sales, now legal in 42 states and the District of Columbia, through tasting rooms, wine clubs, online marketing and other direct sales channels, reaching consumers through the Internet, mobile apps and social media. Premium keg wines have also been a positive development for wine, providing draft wine at restaurants and other on-premise outlets.

The name of the California based winery, vineyard and new management will be released once the Company completes the standard due diligence and signing of the definitive agreement which is expected to be completed before November 30th 2015. The transaction will consist of a stock-for-stock transaction and cash infusion through an investment banking agreement for the winery property and allow the company to acquire existing and new revenue through retail, club and e-commerce sales as a wholly owned subsidiary of 800 Commerce.

About 800 Commerce
800 Commerce, Inc. (www.800commerce.com) was founded for the purpose of marketing credit card processing services on behalf of merchant payment processing service providers. The Company generates revenue from the marketing of credit processing services by way of fees received from merchant payment processing service providers on whose behalf the Company brokers their processing services.

FORWARD-LOOKING DISCLAIMER: This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of 800 Commerce, Inc. to be materially different from the statements made herein.

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