Vintage Wine Estates Bolsters Portfolio With Impact “Hot Brand” Ace CiderNovember 16, 2021
Vintage Wine Estates is adding Impact “Hot Brand” Ace Cider to its portfolio, agreeing to acquire the Sebastopol, California-based cidery for an undisclosed sum. Ace’s depletions have expanded from 770,000 (2.25-gallon) cases to over 1 million cases in the past three years, according to Impact Databank, with company revenues above $20 million.
“This strategic acquisition adds an innovative product line to our RTD category and brings us access to a significant new sales channel for distribution, through which we expect we can push many of our brands,” said Vintage Wine Estates CEO Pat Roney. “Ace is an excellent complement to our wine portfolio and its products are distributed through the beer channel which provides a new growth opportunity for all of our RTD products.”
Meanwhile, Vintage reported net revenue up 3.4% to $55.7 million for the three months through September, marking its fiscal first quarter. Adjusted EBITDA totaled $11.8 million, or about 21% of revenue. “We were unable to ship about $7 million in product in our B2B channel because of shortages in glass which delayed production and shipments to a major retailer,” Roney noted. “These volumes were rescheduled into the rest of fiscal 2022. We also continue to experience higher freight costs due to the shortage of truck capacity.”
For the quarter, Vintage posted direct-to-consumer revenues of $14.9 million, wholesale revenues of $16.2 million, and B2B revenues of $24.5 million. For its full fiscal year ending next June, the California wine player has upgraded its revenue guidance to $265 million-$275 million, owing to organic growth and ongoing acquisition activity.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.