Glass Bottle Shortages Cut VWE Revenue $7 Million in 1st Fiscal Quarter

The glass bottle shortage cut Vintage Wine Estate’s business-to-business shipments 39.8%, but revenue was down just 5.2%, reflecting a favorable product mix, the company said.  Some of the B2B volume loss was offset by a 13.2%, or 70,000 cases, volume increase in the direct-to-consumer segment.

Total revenue rose 36.9%, or $4 million, to $14. million.   Revenue generated by two acquisitions — Kunde Family Winery, acqui3e April 19, and Sommelier Co., acquired June 22 — account for $2.1 million of the higher sales figure.

Pat Roney, founder/ceo, said delivery of the product represented by the $7 million of sales impacted by the bottle shortage, had been rescheulded into the rest of fiscal 2022.

Strong Direct-to-Consumer (“DTC”) revenue growth of $4 million, or 36.9%, to $14.9 million was driven by acquired revenue of $2.1 million, increased tasting room traffic, measurable growth in wine club membership and retention, continued gains in eCommerce and digital channels with combined Average Order Value (AOV) growth of 3% across all key transaction sites.

Wholesale revenue increased $1.2 million, or 7.7%, to $16.2 million from acquired revenue of $500,000, higher case volumes to international markets and favorable product mix, more than offsetting the discontinuation of some minor brands and marketing programs. Across brands, VWE achieved depletion volume growth of 1% over the prior-year period, whereas for the Company’s priority brands, which represent approximately 33% of total depletion volume, depletions grew 14.4%.

Business-to-Business (“B2B”) demand was solid, while fulfillment was impacted by supply chain challenges that delayed approximately $7 million in shipments resulting in revenue of $24.5 million, down $1.3 million, or 5.2%.

 

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