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Fab.....
Hardly a surprise to hear this news. Surely time now to look at changing things and not being tied singularly to their Angels concept. I don't know why they haven't set up alternative sales channels for their excess stocks.
Every investment thesis should be based on reality and market driving factors.
Speaking to a lot of people generally, and a few vendors in connection to Xmas markets, both are being apprehensive about going into these large public gatherings.
Plus when we add in the current cost of living, people will see buying wine online and having at home with friends/family as a cost effective solution.
As such, this will combine for a bumper period in sales for naked, and more importantly add new clients and grow out the consumer base for longer term platform stability.
The new MD appointment is a positive step for sure - although James Crawford was already Group CFO. Hopefully new MD can shake things up, has an interest in putting customers first, and can put some soul back into the brand.
BTW it would be a pretty sad indictment on WINE's strategy if they were relying on the fact that people were too frightened to shop in Xmas markets to get their revenues up, but if that's your investment thesis then OK.
Looking at the guys pedigree and experience he will be very well connected and have a lot of knowledge to take naked wines to the next level.
I imagine that most of his pay will be bonus linked, so expect a very aggressive move over the coming months to drive revenue and share price in turn.
now with Xmas sales here, and a lot of people expected to avoid Xmas markets due to the troubles in MEA, there will be a lot of wine for home buying happening.
Would expect this to easily move up to the 70's once some good buys lands and people realise how cheap this share is now.
Saw that yesterday and bought back in here. Covenant risk is likely keeping this down but he does not seem the sort of pedigree that would join a company that's doomed to miss covenants. Imagine they will be close to the bone but maybe the threat of any significant capital event has diminished a little.
Naked Wines has appointed Rodrigo Maza as managing director of its UK business.
Rodrigo Maza, formerly of Grupo Modelo and AB InBev, will succeed former Naked UK managing director, James Crawford, who becomes chief financial officer role for the Naked Wines group.
Maza has previously launched digital, consumer-facing ventures in seven Latin American countries, before becoming managing director of AB InBev’s PerfectDraft operation in Europe.
With almost 20 years of experience in the drinks industry, Maza brings with him “a strong skill set and an excellent reputation for delivering world-class shopping experiences and profitable growth”, according to a Naked Wine spokesperson.
Nick Devlin, Naked’s global CEO, said: “Maza’s extensive strategic experience, relentless customer focus and track record of driving innovation in the beverage space make him a natural leader for our key UK business. I’m delighted to welcome Maza to Naked and excited about supporting him as we pursue our mission to get more UK consumers drinking independent.”
https://harpers.co.uk/news/fullstory.php/aid/32027/Naked_Wines_UK_appoints_new_MD.html
Agreed. Competing with the supermarkets or even other online clubs on price/quality is a killer. Which is why I think they should be selling a different product - by which I mean really focussing on the personal connection between the drinker and the winemaker and selling at a different emotional level to a customer that wants or feels they get something from that connection.
Almost every day for the last year and beyond this company SP has gone down which I why I have now cancelled my Angels Membership and asked for my money back. It is a shame, because in principle the idea was sound trying to give new and smaller vineyards a chance. What is killing this company in my opinion are supermarkets selling equivalent quality wines at cheaper prices. The only chance for this company now is to be taken over and have its visions integrated into a more solvent entity.
Covenants still might come into play now, as well as latest attrition rate of Angels. Awaiting news...
IMO management need to come forward with more details on their revised plan. They have used the phases like 'leaner, tougher competitor', and '[to be ] sustainably profitable ....may require us to be a smaller business' - so it will be interesting to learn what this means in practice.
But no point investing unless they are going to improve their model otherwise it's same rubbish in, same rubbish out.
Price seems to have settled, and appears that all reasonable bad news is out.
now in the Xmas and new year season, so would expect high levels of wine purchasing, considering people will be staying home this year and avoiding xmas markets due to the threat of attacks.
Wrong. Most companies (ignoring insurers) aim to reward and grow the engagement of existing customers - rather than systematically turn them off. For WINES, its the opposite. Each year, the contribution from the new set of customers ALWAYS decreases in each of the subsequent years. There are only so many customers that are predisposed to buying wine online, so spending increasing amounts to get them onboard only to lose them later because your business model is carp seems a little careless.
Hello Camo, how are you doing? Hope you are not invested here. Looks like this company is fighting a losing battle. If the SP goes down further tomorrow then I am pulling my subscription to Naked Wine and reclaiming the money I have in there before it finally goes bust. A shame really because the concept was good.
Anyone alive here?
The business model is not working and they know this. Too much risk taken on in terms of wine purchasing (their stated purpose has been 'giving winemakers hope'). Also, historically too much focus on using price as the main lever to get new customers and treating the customer lifetime value cycle like some sort of machine where you feed it at the top, watch the wheels go around and out pops some money.
I think they are trying to move in the right direction with their strap line "Connecting everyday wine drinkers with the world’s best independent winemakers". This needs to be front and central to their proposition, engaging drinkers on a deeper level than before - but without being totally invested (or caught up) in the growing cycle and working capital risks.
The US is a massive market if they can find the right formula that creates value for the customer and draws them in by feeding their passion for the wine, its origin, and all the other stuff that goes with this product.
I bet Mr Devlin wishes he'd waited, could have saved himself £6k?
A few director deals this week...
Thoughts?
Well.... this thing has gone
Anyone investing afresh or still holding is going to have to wait before the tide changes on this one I feel. A slower start to the current FY for sales to existing customers, no longer chasing new customers with aggressive spending, and some structural aspects to fix in the business model - things will take time to settle into the new norm and there will be the opportunity for false starts. Looking at WINE compared to other investment opportunities, not sure what this share has to offer for foreseeable future as things stand.
There were dreams of share buy backs in the recent announcement - when this is a realistic prospect (in 12 months?) it might be the signal to buy - plenty of time for the SP to drift a lot lower between now and then.
I was phoned and offered 2 bottles of wine to place an order. I spent a long time questioning him about the delay in the accounts, the results and the share price to which he had no answers but said if the company was going under we would be advised. Next day I got an email from Matt Wine Guy offering me 3 bottles of wine to place an order. Draw your own conclusions.
Grim news, cannot see present low sp being maintained for now
Wine consumption has been down in UK as well as in Europe. French wine lake is getting better and their government is buying wine to discard it to protect the wine growers. The French are switching to cask beers and other liqueur as they are fed up by paying more and more for poor quality mass produced wines.
In my recent visit to France, as I normally buy wines at Carrefour and this time they full very cheap wines under 4 euro and some over 10. Very few mid priced wines which I normally buy.
Really sitting on the fence in terms of buying back in. The writedown was not as much as I thought it would be and the business loss is to be expected. My main concern was forward looking and how bad this economic backdrop could become and how well they can navigate it. I personally enjoy my visits to Majestic Wine and I feel that alone is trying to sway me to purchase again.