Many members of America’s Newspapers received large cash payouts as a result of their partnerships with Arrandale Ventures, with some newspapers receiving more than $100,000 in cash last month.
In November, Arrandale Ventures — a venture capital firm that allows newspapers to trade their advertising inventory for equity in top-tier B2C and B2B startups — announced the acquisition of its portfolio company, Minibar Delivery, by ReserveBar. Terms of the transaction were not publicly disclosed. This is the first exit for Arrandale Ventures, which began making investments in startups, such as Minibar Delivery, last year. Arrandale Ventures anticipates investing over $1 billion of in-kind marketing in startups over the next five years.
Minibar Delivery is one of the nation's leading alcohol-delivery services, where consumers can order their favorite adult beverages straight to their doorsteps in under one hour. The company recently announced a national partnership with 7-Eleven to serve as the convenience store's alcohol-delivery service across the U.S. The acquiring company, ReserveBar, ships and personalizes high-end spirits and is backed by investors such as the $150 billion private equity firm Silver Lake Partners as well as celebrities Sean “Diddy” Combs, Kevin Durant and Mary J. Blige.
As a result of the transaction, Arrandale Ventures' media partners realized substantial returns on their in-kind marketing investments by way of cash payouts. Many members of America's Newspapers are part of the Arrandale Media Network, which comprises thousands of print, digital, television, radio and out-of-home media outlets.
Observer Media Group is one such member and ran print and digital advertisements, as well as sponsored content, for Minibar Delivery throughout 2021. The Sarasota, Florida-based chain of 11 weekly newspapers and four magazines earned equity value in Minibar Delivery as it ran these advertisements, so received a large cash payout from the acquisition.
“We are beyond pleased with the results of the Minibar campaign,” said Emily Walsh, president and publisher of Observer Media Group. “The Minibar Delivery campaign even led to some local alcohol retailers' upping their cash spend with us to compete with the Minibar Delivery marketing blitz.”
Added Walsh, “We are definitely looking forward to running more Arrandale campaigns!”
Other members of America's Newspapers that are part of the Arrandale Media Network include Ogden Newspapers, Wick Communications and Rust Communications.
“No newspaper is too big or too small to reap the rewards of the Arrandale model,” said Zachary Richner, founder and managing partner of Arrandale Ventures, and whose family owns one of the largest local media groups in the northeast, Richner Communications. “Last year, nearly $132 billion of capital went from U.S. VC-backed startups to Google, Facebook and Amazon for marketing. Arrandale is proving that early-stage companies should be diversifying their marketing mixes with legacy media channels, like newspapers. The Arrandale model uniquely allows newspapers to participate in the upsides they're helping to create in these startups.”
To learn more about Arrandale Ventures, including how to join the Arrandale Media Network, email hello@arrandaleventures.com or visit www.arrandaleventures.com.
