1-800-FLOWERS.COM, Inc. and Inertia Beverage Group (IBG) today announced a strategic alliance designed to enhance both company's position in the wine business. As part of the agreement, IBG has purchased the WTN Services™ division of 1-800-FLOWERS.COM, which provides order fulfillment services to wineries. IBG is combining the WTN assets with its existing winery services business to create a leading company in the winery services space: WineDirectSM. WineDirectSM will manage fulfillment and other services for 1-800-FLOWERS.COM, Inc.'s WineTasting.com® ecommerce wine gifting business. In addition, the companies plan to leverage their assets to grow direct-to-consumer sales through joint marketing and promotional programs including sales opportunities through the 1-800-FLOWERS.COM, Inc. family of gifting brands, such as 1-800-Flowers.com and 1-800-Baskets.com. Financial terms were not released.

"1-800-FLOWERS.COM is committed to the wine gifting market and to establishing WineTasting.com as a leader in the direct-to-consumer wine business. This transaction enables us to focus on what we do best; provide great gifts appropriate for every occasion and recipient," said David Taiclet, president of the Gourmet Food and Gift Baskets division of 1-800-FLOWERS.COM, Inc. Taiclet noted that the Company plans to work closely with WineDirectSM to develop the wine gifting space. "As part of our effort in wine gifting, we are pleased to be working with WineDirectSM to help build sales momentum for WineTasting.com and the growing list of wineries, throughout the world, with which we both work."