Hadley and TJ Douglas aren’t your typical wine retailers. With shops now in two markets and plans to expand beyond, the couple are proving that success is possible even when eschewing some of the traditional tools of the business, all while working to put a spotlight on underrepresented brands and suppliers and creating a more diversified industry for generations to come.
“I believe our lack of formal, certified wine training is our superpower in that we look at the industry differently and we’re not bound by the traditional arenas of the industry,” says Hadley, co-founder and president of Urban Grape, with stores in Boston and Washington, D.C. Indeed, the couple is quickly gaining attention from suppliers and consumers alike for their unique approach to retailing—including merchandising that classifies wine according to body type rather than varietal or region—and their philanthropic endeavors that seek to make wine more welcoming and accessible to customers of all types.
TJ, co-founder and CEO, spent the early part of his career in front-of-house positions in restaurants, including as bar manager for Todd English’s former Rustic Kitchen in Boston. He also worked in sales for the Boston area’s Ruby Wines distributorship, a position that had him regularly visiting liquor stores. While he holds no certificates in wine studies, T.J. did take classes at the Elizabeth Bishop Wine Resource Center at Boston University and has traveled extensively to wine regions. Hadley’s background, meanwhile, is in marketing, events, and communications, including philanthropic experience.
Bringing People Together
With a growing family, TJ saw an opportunity 14 years ago to apply his knowledge and insights from the hospitality and wine distribution sectors to retail. “I wanted to open a store that would bring people together and where the wine selection would be organized by body,” TJ says. That first store opened in a Boston suburb in 2010, and since then, the Douglases have been building a business that today is comprised of retail, events, and consulting services. “From the beginning, we agreed that I would sell the store and TJ would sell everything in it,” Hadley says of the couple’s division of responsibilities.
A second store in south Boston near Copley Square was added in 2012. Two years later, the liquor license to the original store was sold, a move which “allowed us to focus on the growth of the company,” says TJ, pointing to added services such as online sales, delivery, and events. The establishment of an e-commerce platform prior to the start of the pandemic was pivotal, Hadley adds, and sales moved into high gear, paving the way for more expansion. But rather than another store in Massachusetts, the couple set their sights on Washington, D.C., where, Hadley says, wine shipping laws are “more forgiving” in the nation’s capital than in the Bay State. “Our goals are to expand our national shipping, highlight underrepresented winemakers and distillers, and get their products into more hands of people across the country,” she says. Earlier this year, Urban Grape opened in Washington, D.C.’s Shaw neighborhood.
In 2023, sales at Urban Grape in Boston reached $7 million, TJ says. This year, he’s projecting an ambitious $4 million in sales in Washington, D.C. alone. Wine accounts for the lion’s share of the business at 78%, followed by spirits at 8%, beer at 4%, and all other merchandise at 10%. Urban Grape employs 38 workers in total, including 12 employees per store. While formal wine education isn’t necessary—Hadley says that given the couple’s lack of degrees, that would be hypocritical—employees are required to read the couple’s book, “Drink Progressively: A Bold New Way to Pair Wine and Food.” Moreover, store employees are exposed to a lot of “on-the-job learning,” Hadley notes, as every bottle of wine stocked is sampled and staff is required to participate in tastings. Long-term employees, meanwhile, receive support from the company to further their wine education, TJ notes.
Urban Grape’s Boston store spans 2,000 square feet, while its sister D.C. store is more than double in size at 4,300 square feet, including 1,000 square feet dedicated to private events. In keeping with TJ’s dream of a gathering space, both locations feature large “community tables,” frequently used for tasting events. The D.C. store, housed in a former bank, showcases a 1,000-bottle, walk-in, temperature-controlled wine cellar, with a large window that looks into the events space.
Unique Merchandising
The most notable feature of the two stores is the unique merchandising of wines. Rather than a standard varietal or regional sort, wines are stocked “progressively,” or by body type on a 1-10 scale—with 1 indicating a light-bodied wine and 10 the fullest bodied. Inexpensive wines are stocked on the lower shelves, with more expensive offerings on top. At the D.C. location, one wall is dedicated to sparkling wines and rosés, another to whites, and a third to red wines. “The long wall has become our signature,” says Hadley, noting that the sets are free of shelf talkers and end caps.
According to TJ, 90% of Urban Grapes’ customers applaud the approach and ask why it’s not used at more wine shops. “That’s because it’s trademarked,” he notes. While the layout simplifies wine buying for shoppers, Urban Grape employees also benefit. “At other stores, customers often walk in and grab a bottle off the shelf, without making contact with the sales staff,” TJ says. But at his stores, the unusual layout prompts interaction. “Our purpose is to take the intimidation out of purchasing wine,” the retailer says. In fact, the approach was invaluable in the aftermath of the pandemic, Hadley notes. While other retailers grappled with supply outages for brands and wine types, “it didn’t affect us,” she says. “We continued to order wines by body, not by brand, varietal, or country of origin. As long as suppliers brought us sound products, we evaluated them.”
Urban Grape stocks up to 1,000 wines, priced from $12 for a 750-ml. of 2022 Vignamato Rosso Piceno to $7,000 for the 2011 Domaine Leroy Les Beaux Monts Cru Vosne Romanée Burgundy. The chain’s sweet spot is wines priced between $35-$45, T.J. says. Selection changes frequently so it’s difficult to point to top sellers, he notes, but in general, wines from South Africa and Sancerre perform well at both stores. “We’re always looking to discover new wines,” adds Hadley. “We were the first retailer in Massachusetts to bring in Kumusha wines from South Africa ($18-$45), and we couldn’t keep them on the shelves. We’re known as a place where smaller, underrepresented winemakers can come in, tell their stories, and as long as the juice in the bottle is good, it will fly off the shelf.”
The Douglases launched their own wine company, Progressive Wine Co., three years ago. The wines are produced from grapes from Sonoma County, including the Russian River Valley, and are priced between $25-$38 a 750-ml. Later this year, a Cabernet Sauvignon and Chardonnay from the Alexander Mountain region will be introduced, with pricing expected to be between $45-$50 a bottle.
Brand Builder
Select spirits offerings at Urban Grape range from 250 SKUs in Boston to twice that in Washington, D.C. According to TJ, the stores focus on Bourbon and other American whiskeys and agave spirits, though Tito’s vodka ($30 a 1-liter) is a top seller. Craft labels and spirits from underrepresented distillers are also highlighted, such as Massachusetts’ Bully Boy and Nashville’s Uncle Nearest 1884 ($50 a 750-ml.). And as with wine, the Douglases stay on the prowl for emerging brands. “I’m always on the lookout for unique finds, like Procera Red Dot gin from Kenya ($115),” says Hadley. “We’d rather focus on those great brands that aren’t stocked everywhere else and that have a great story and flavor profile.”
Beer selection at Urban Grape is also limited, with most beer sold as singles ($2-$6 a 12- or 16-ounce can), so customers can create their own 4- or 6-packs. “Local, local, local” is the stores’ approach to beer, TJ says, with craft brews representing the majority of the selection.
In addition to the stores and Progressive Wine Co., sister companies include Progressive Pours and Urban Cellars Consulting, all operating under the umbrella Drink Progressively Group. Progressive Pours creates in-store, off-site, and virtual wine-tasting events and customized gift packages for companies and organizations. Urban Cellar Consulting, meanwhile, is TJ’s “side hustle” job of managing personal wine cellars and consulting on wine lists. Recent clients include the Boston Symphony Orchestra.
Free in-store tastings are offered at both stores every Thursday, and according to Hadley, they can draw up to a combined 500 visitors a week. Similar Saturday afternoon “after brunch” tastings have been popular at the D.C. store, and at press time, there were plans to launch them in Boston. Larger-scale seasonal events, such as rosé and sparkling wine tastings, are also held. But when it comes to marketing, the couple sees vast opportunity ahead in e-commerce sales. While the Boston store has “a very robust e-comm platform, with delivery,” state laws make it restrictive as to where it can ship wine, Hadley says. “We can amplify that service in D.C.,” she notes.
TJ and Hadley are most passionate in their efforts to not only highlight diversity in the wine business, but to bring in new, underrepresented members. Four years ago, they founded the Urban Grape Wine Studies Award for Students of Color, which provides education, work experience, and mentorship to two individuals a year. “We realized that the pipeline didn’t exist” for BIPOC individuals to enter the industry, TJ explains of the launch of the program, which has raised some $250,000. The goal is to create career opportunities for its participants to grow generational wealth while increasing diversity in the wine industry. Partners include Jackson Family Wines, while $1 from every bottle of Progressive Wine sold goes to the award. “We’re so proud of the program,” says Hadley. “It’s a small program but it’s very impactful.”
While their approach to wine sales may go against the industry norm, TJ and Hadley are going full throttle to grow their business, bring opportunity to others, and win over consumers. They plan to expand brick-and-mortar operations into other regions, but for the present decline to reveal where. E-commerce will also play a big role. “We’ve got to get people more comfortable buying wine online,” Hadley says. “So that’s where we’re starting from. Bread crumb by bread crumb, the same way we do it in the stores.”