(FORTUNE Small Business) – COMPANY: Vino del Sol, based in Corinth, Miss.

CONCEPT: Importer of Argentine wines

FOUNDER: Matt Hedges, 25, University of Mississippi, MBA 2004

INSPIRATION: Hedges fell in love with Argentine wines while spending his junior year at a Vanderbilt University program in Buenos Aires. He discovered that most importers were overlooking these wines--they account for less than 2% of the $22 billion U.S. wine market--and wagered that Americans would be attracted to their clean, fruity taste.

STARTUP CAPITAL: Hedges raised nearly $1 million from 40 private investors after winning Wake Forest University's Elevator Pitch Competition.

BIG MISTAKE: Hedges planned to market directly to the wholesalers, which would have increased overhead.

BIG BREAK: Hedges partnered with importer Epic Wines of Aptos, Calif., which he expects to market Vino del Sol's products to more than 50 distributors. The deal eliminated the cost of marketing to wholesalers and renting warehouse space, which helped Hedges keep prices competitive: $6.99 to $24 a bottle at retail.

PROJECTED REVENUE: About $1 million for 2005.

GRADE: A-. "There's a fierce fight for shelf space among wines. I'd like to see Vino del Sol launch a few hits in local markets before trying to establish itself as a nationwide brand, as indie record producers do," says attorney Andrew Sherman, a judge in FSB's business plan competition and senior partner at Dickstein Shapiro Morin & Oshinsky in Washington, D.C.