Vintage Wine Estates’ Full-Year Sales To Approach $300 MillionMay 17, 2022
California winemaker Vintage Wine Estates saw sales climb 68% to $79 million in its fiscal third quarter ended in March, with adjusted EBITDA rising 38% to $14 million. With the solid performance, Vintage Wine Estates is now expecting revenue to reach $290 million to $295 million for its full fiscal year ending in June, generating adjusted EBITDA of between $62 million and $64 million.
Overall, Vintage Wine Estates’ case volume was up 22% for the quarter to 557,000 cases. The company’s sales to wholesalers increased 16% to $25 million on volume up 12% to 357,000 cases. Brands including Bar Dog, Firesteed, Photograph, and Clos Pegase have been showing particular strength lately, according to the company. The group’s B2B business surged by more than 200% to $34 million on volume up 33% to 113,000 cases, boosted by private label projects coming to fruition. Recent acquisitions Vinesse, Ace Cider, and Meier’s Wine Cellars also contributed to growth.
So too did Vintage Wine’s direct-to-consumer (DTC) business, whose revenue leapt 34% to $20 million on a 67% volume increase to 87,000 cases, driven by a 45% rise in tasting room traffic as pandemic restrictions have faded. “Our DTC channel is a hallmark of Vintage Wine Estates and continues to validate the success of our omnichannel strategy by reaching the consumer through multiple touch points,” said founder and CEO Pat Roney. “Our tasting room traffic is outperforming as more people are exploring new entertainment options and we deliver a great experience. Importantly, this activity has not cannibalized our e-commerce traffic, which has held relatively stable.”
Amid the strong sales figures, Roney added that logistics and labor challenges are continuing, and inflation is also taking a toll. “We are expecting price to begin to flow through and help offset rising costs beginning in the fiscal fourth quarter,” he said.
In addition to its core business, Vintage Wine Estates recently announced the opening of a new division called NexDrinx, to be helmed by beverage alcohol and cannabis industry veteran Tracey Mason as senior vice president and general manager and include CBD drinks from brands like Ace Cider and Gem + Jane.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
Tagged : Ace Cider, Bar Dog, Clos Pegase, Firesteed, Gem + Jane, NexDrinx, Photograph, Vintage Wine Estates
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