Vintage Wine Estates Restructures Organization, Initiates Cost Cuts and Simplifies Business Model
17 Janeiro 2024 - 6:15PM
Business Wire
- Simplifies business with restructuring and reduction of
non-core, lower margin product and service offerings
- To reduce workforce by approximately 15% for annualized
savings of an estimated $7.1 million
- Retained Oppenheimer & Co. to accelerate monetization of
non-core assets
- VWE to significantly narrow focus to a smaller, sustainable
core business model with less complexity and stronger underlying
economics
- Increasing focus on a core set of Super Premium+ priority
brands while building a data-driven, consumer-centric culture and
implementing a disciplined commercial planning process
Vintage Wine Estates, Inc. (Nasdaq: VWE and VWEWW) (“VWE” or the
“Company”), one of the top wine producers in the U.S., today
announced that it is restructuring the business by seeking to
monetize certain assets and exit certain non-core, lower margin
product and service offerings. As a result, the Company will be
reducing its workforce by approximately 15% for expected annualized
savings of $7.1 million. Restructuring charges for the actions are
expected to be approximately $1.5 million, which will be reflected
in the third quarter of fiscal 2024 which ends March 31, 2024.
Seth Kaufman, President and Chief Executive Officer, commented
“The complexity of our business has resulted in a
disproportionately high-cost base. To drive margin improvement and
generate cash we need to simplify beyond our product offerings and
fundamentally reconstruct our business model. Getting from here to
there starts by recognizing where our strengths lie and identifying
the areas of the business in which we shouldn’t operate. The
processes and requirements for estate wineries and wine making,
production services and other custom crush offerings and several of
our independent DTC operations are very dissimilar and require
different capabilities. The actions we are taking now are the
initial steps to streamlining our business model and operations as
we develop a long-term strategy for building a select portfolio of
nationally recognized brands.
“We need the resources to execute our plan and have engaged
Oppenheimer & Co. to help accelerate our efforts to monetize
certain assets that we do not see as part of the reimagined VWE.
These include select luxury estates, some premium price-point and
below wine brands as well as certain production services and some
DTC platforms such as digitally-native brands and telemarketing.
These efforts will help us pay down debt and we expect will enable
investments to drive a step-change in consumer-centricity and
commercial discipline.”
Restructuring to Simplify the Business
The Company plans to simplify its DTC operations to concentrate
resources on certain Super Premium+ estate wineries. VWE also plans
to monetize its Clos Pegase winery and tasting room in Napa and its
Viansa property in Sonoma. It also will look to wind down certain
custom crush and B2B services while evaluating its array of
production services businesses and the contributions of each.
Its priority brands will include a number of Super Premium+
estate brands and the select lifestyle brands of Layer Cake, Bar
Dog, Cherry Pie and ACE Cider. The Super Premium+ estate priority
brands will include Girard, Kunde, B.R. Cohn, Laetitia and
Firesteed, among others. Mr. Kaufman noted, “We expect this intense
focus of our resources will enable us to create stronger brand
desirability that can be leveraged to drive greater wholesale
throughput across on-premise and retail, creating a marketing
discipline which provides enhanced opportunities for our
distribution partners.”
Mr. Kaufman concluded by saying, “As we reimagine VWE to become
an omnichannel wine and cider company that offers the highest
quality, Super Premium+ products in the U.S., we expect this
transformation to result in a smaller company, but one that can
grow sustainably while generating top-quartile industry margins. We
are taking immediate actions now to move toward this vision and, as
we advance our strategy, we will continue to communicate our
efforts and progress.”
About Vintage Wine Estates, Inc.
Vintage Wine Estates (Nasdaq: VWE and VWEWW) is reimagining
itself to become a leading wine and cider company that makes the
highest quality, Super Premium+ wines and ciders that are
accessible and approachable for consumers. Its vision is to be a
growing, highly profitable omnichannel business with a
consumer-centric culture. VWE has a family of estate wineries in
Napa, Sonoma, California’s Central Coast, Oregon, and Washington
State with valuable heritage and offerings. Through its Five-Point
Plan and its strategy to reimagine the future of VWE, the Company
is simplifying its offering to ACE Cider, three leading lifestyle
brands (Bar Dog, Cherry Pie and Layer Cake) and key estate wines
including B.R. Cohn, Firesteed, Girard, Kunde and Laetitia as well
as several other heritage estate brands. Its primary focus is on
the Super Premium+ segment of the U.S. wine industry defined as
$15+ per bottle. The Company regularly posts updates and additional
information at ir.vintagewineestates.com.
Forward-Looking Statements
Some of the statements contained in this press release are
forward-looking statements within the meaning of applicable
securities laws (collectively, “forward-looking statements”).
Forward-looking statements are all statements other than those of
historical fact, and generally may be identified by the use of
words such as “seeking”, “expect”, “develop”, “will”, “should”,
“plan”, or other similar expressions that indicate future events or
trends. These forward-looking statements include, but are not
limited to, statements regarding VWE’s business strategies; the
ability of the restructuring efforts to drive margin improvement,
generate cash, and generate top-quartile industry margins; the
ability of Oppenheimer & Co. to accelerate the Company’s
monetization efforts including select luxury estates, some premium
price-point and below wine brands as well as certain production
services and some DTC platforms such as digitally-native brands and
telemarketing; the monetization of Clos Pegase winery and tasting
room and Viansa property; winding down of certain custom crush and
B2B services; the Company’s priority and lifestyle brands; the
focus on resources to create stronger brand desirability; the
ability to leverage stronger brand desirability to drive greater
wholesale throughput across on premise and retail; the ability of
simplifying the DTC operation to concentrate resources on Super
Premium+ estate wineries; reductions in workforce and related
annualized savings; the ability of monetization efforts to pay down
debt and enable investments to drive a step-change in
consumer-centricity and commercial discipline; the ability of the
Company to create enhanced marketing discipline and opportunities
for its distribution partners; and the size of the company and its
ability to obtain sustainable growth. These statements are based on
various assumptions, whether or not identified in this news
release, and on the current expectations of VWE’s management. These
forward-looking statements are not intended to serve as, and should
not be relied on by any investor as, a guarantee of actual
performance or an assurance or definitive statement of fact or
probability. Actual events and circumstances are difficult or
impossible to predict and may differ materially from those
contained in or implied by such forward-looking statements. These
forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond the control of VWE. Factors
that could cause actual results to differ materially from the
results expressed or implied by such forward-looking statements
include, among others: the Company’s ability to recognize benefits
from any organizational restructuring and other cost savings
actions, including expected results from the implementation of the
Company’s Five-Point Plan, positive cash generation and asset
monetization; the Company’s ability to regain compliance with the
Nasdaq Listing Standards and maintain the listing of its securities
on Nasdaq; risks related to ongoing legal proceedings; the
Company’s limited experience operating as a public company and its
ability to remediate its material weaknesses in internal control
over financial reporting and to maintain effective internal control
over financial reporting; the ability of the Company to retain key
personnel; the effect of economic conditions on the industries and
markets in which VWE operates, including financial market
conditions, rising inflation, fluctuations in prices, interest
rates and market demand; the effects of competition on VWE’s future
business; the potential adverse effects of health pandemics,
epidemics or contagious diseases on VWE’s business and the U.S. and
world economy; declines or unanticipated changes in consumer demand
for VWE’s products; disruption of supply or shortage of energy;
VWE’s ability to adequately source grapes and other raw materials
and any increase in the cost of such materials; the impact of
environmental catastrophe, natural disasters, disease, pests,
weather conditions and inadequate water supply on VWE’s business;
VWE’s level of insurance against catastrophic events and losses;
impacts from climate change and related government regulations;
VWE’s significant reliance on its distribution channels, including
independent distributors, particularly in its wholesale operations;
a loss or significant decline of sales to important distributors,
marketing companies, or retailers; risks associated with new lines
of business or products; potential reputational harm to VWE’s
brands from internal and external sources; decline in consumer
sentiment to purchase wine through VWE’s direct-to-consumer
channels; possible decreases in VWE’s wine quality ratings;
integration risks associated with recent or future acquisitions;
possible litigation relating to misuse or abuse of alcohol; changes
in applicable laws and regulations and the significant expense to
VWE of operating in a highly regulated industry; VWE’s ability to
maintain necessary licenses; VWE’s ability to protect its
trademarks and other intellectual property rights; risks associated
with the Company’s information technology and ability to maintain
and protect personal information; VWE’s ability to make payments on
its indebtedness; risks that the Company is unable to meet the
additional restrictions and obligations imposed by its amended
credit agreement; and those factors discussed in the Company’s most
recent Annual Report on Form 10-K and in subsequent Quarterly
Reports on Form 10-Q or other reports filed with the Securities and
Exchange Commission. There may be additional risks including other
adjustments that VWE does not presently know or that VWE currently
believes are immaterial that could also cause actual results to
differ from those expressed in or implied by these forward-looking
statements. In addition, forward-looking statements reflect VWE’s
expectations, plans or forecasts of future events and views as of
the date and time of this news release. VWE undertakes no
obligation to update or revise any forward-looking statements
contained herein, except as may be required by law. Accordingly,
undue reliance should not be placed upon these forward-looking
statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240117039301/en/
Deborah K. Pawlowski Kei Advisors LLC dpawlowski@keiadvisors.com
Phone: 716.843.3908
Vintage Wine Estates (NASDAQ:VWE)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Vintage Wine Estates (NASDAQ:VWE)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024