WARNING: This story contains words including “non-fungible”, “Ethereum” and “metamask wallet” … the author still isn’t quite sure what any of them mean, even after extensive Googling.
Penfolds has become the first wine to partner with BlockBar, a leading non-fungible token (NFT) marketplace for luxury wine and spirits products.
NFTs are usually bought with cryptocurrencies. Sometimes they are also bought in dollars or fiat currencies. Transactions are recorded on the blockchain.
According to Wikipedia: “A non-fungible token (NFT) is a unique and non-interchangeable unit of data stored on a digital ledger (blockchain). NFTs can be associated with easily-reproducible items such as photos, videos, audio, and other types of digital files as unique items (analogous to a certificate of authenticity), and use blockchain technology to give the NFT a public proof of ownership.”
Nope, still none the wiser … but Penfolds will launch a limited edition NFT tied to a rare Penfolds Magill Cellar 3 barrel of wine made from vintage 2021 and available for purchase for $130,000 USD. The digital token corresponds to this limited-edition Magill Cellar 3 barrel currently maturing this special wine.
The single barrel NFT will be converted into 300 bottle NFTs at the date of bottling of the wine in October 2022 with the whole process verifiable through the blockchain, and each bottle being identified with a barrel and bottle number. The NFT serves as a digital receipt that verifies the buyer’s ownership and authenticity of the wine bottles.
The barrel NFT can be resold or transferred through the BlockBar platform but cannot be redeemed by the purchaser. The bottle NFTs can be resold or transferred through the BlockBar platform by the purchaser and can be redeemed by the purchaser for the physical bottle after the date of release of the wine in October 2023.
According to Decanter NTFs are a hot trend in wine: “NFTs can have a cultural value (like an exclusive or limited-edition piece of art), but they also have a commercial value; as such, they can be re-sold if the market determines their value has increased.
“These sales primarily happen on the Ethereum blockchain, a decentralised network for trading with Ether. In cryptocurrency terms, Ethereum is a bit like Pepsi to Bitcoin’s Coca-Cola.”
I still don’t get it … but anyways …
Each bottle will be stored in limited edition gift boxes at BlockBar’s facility, until the purchaser decides to redeem the bottle NFT by collecting the physical bottle no earlier than the date of release of the wine in October 2023.
As part of this program, the owner of the barrel NFT at the time of bottling in October 2022 will receive a personalized keepsake barrel head and an opportunity to engage in a selection of special experiences in October 2022 including;
● a private wine tasting in Magill Cellar 3 (Penfolds Magill Estate Winery South Australia)
● a vineyard tour, with regular video updates and imagery from the winemakers
● a virtual tasting and visit to Penfolds Magill Estate Winery, South Australia for a ‘day in the life’ of a
Penfolds winemaker experience
Penfolds Chief Marketing Officer Kristy Keyte said: “We are proud to partner with BlockBar to release our Penfolds Magill Cellar 3 NFT. This is our first venture selling wines via NFT and cryptocurrency, allowing us to connect and build relationships with new collectors, who buy and trade luxury wine in a completely new and refreshing way. The wine itself, Magill Cellar 3 from the 2021 vintage, is not available for public purchase making it the ultimate collector’s item.”
Dov Falic, CEO of BlockBar, added: “We’re excited to be a part of this innovative milestone for both Penfolds launching its first NFT, and BlockBar launching its first wine brand on the platform. We believe the use case for authentication with blockchain technology is of utmost importance for the industry – with BlockBar consumers know they are buying authentic wine, direct from the brand owner.”
The first Penfolds Barrel NFT will launch on November 24, 2021 at 9am EST. A lobby will become available on BlockBar.com 30 minutes ahead of the launch, whereby to enter, prospective buyers must have one ETH in their metamask wallet.
Having “one ETH in your metamask wallet” sounds like you’re buying a drink at Mos Eisley Cantina in Star Wars. But apparently Ether or “ETH” is the native cryptocurrency of Ethereum, a decentralized, open-source blockchain with smart contract functionality. And MetaMask is a virtual crypto wallet for storing your ETHs. My brain hurts.
The lobby will close at the launch time where one will be randomly presented with the opportunity to purchase the Penfolds Barrel NFT for purchase at USD$130,000 via Ethereum (ETH), credit card, or wire transfer only.
My boyfriend’s cousin trades in crypto … maybe I’ll ask her to explain it to me.