Virgin Wines Share Price (VINO)

Https://www.proactiveinvestors.co.uk/companies/news/1088999/virgin-wines-sees-customer-growth-accelerate-sharply-but-regulatory-costs-keep-profits-under-pressure-1088999.html

Summary of Naked Wines:

• Subscription model linking wine “angels” (customers) with independent winemakers to fund production.

• Extensive presence and strong performance in the US market, unlike Virgin Wines that focuses on UK/Ireland.

• Recent revenue down 8.9% with stabilising trends after bigger falls.

• Active members down about 10% but revenue per member is increasing due to order frequency and value.

• Management focused on inventory optimisation to streamline cash flow.

• Net cash improving; the company is conducting performance reviews to maximise shareholder value.

• Strong strategic initiatives and KPI improvements noted by the new CEO.

Overall, with the US market it seems they are in recovery mode.

Any of you in Naked Wines? That’s also an interesting proposition with £30m of net cash and expected to be nearer to £40m next year (and that’s after buybacks). Bit of cash machine and still looks off the radar

If you’re paying £5 you are buying plonk. The wine will be worth less than 20p. Sadly taxes have dramatically increased so you have plonk and loss leaders and the bottom rung of “wine” is around £8/9 a bottle with the sweet spot at £12-15 for bang for buck wines.

People are drinking less so having a slight premium stock could be good for virgin wines, although many wine lovers will gravitate to The Wine Society in the UK or for investment and fine wines go to Berry Bros.

It is a tough market but I am sure a sustainable niche can be developed.

DYOR

Agree. Virgin Wines’ strategy is to grow its customer base by acquiring and retaining high-quality, loyal consumers who appreciate a curated, premium wine experience delivered directly to their door. This is not your £5 consumer. These are people who are interested in boutique, exclusive wines and expert recommendations. The brand boasts a high customer loyalty rate, with 71% of users likely to purchase again, and a strong emphasis on repeat purchase behaviour. They will be recreating a treat at home vs restaurant prices, not necessarily the cheapest wine on the shelf at supermarkets. The premium segment is growing within supermarkets too, albeit still smaller than the value segment.