English winemaker Gusbourne relied on its direct-to-customer (DTC) sales to boost revenue last year amid tricky trading conditions in both the on and off trade.
Total net revenue was up 1% to £7.1m for the year to 31 December thanks to improved website sales and its on-site wine tasting experience.
These DTC sales now makes up a third of its revenue for the year after income grew 19% to £2.4m.
By contrast, trade sales in the UK fell 9% to £3.1 amid difficult trading conditions. This deterioration was partially offset by new business gained through the fast-growing ‘corporate and partnerships’ channel.
Gusbourne’s international sales also declined by 3% to £1.4m reflecting a fall in order size from some key export markets.
Jonathan White, Gusbourne’s CEO, said the results have been achieved “against a difficult macroeconomic environment, which resulted in challenging trading conditions for the luxury goods sector throughout the year.”
“Despite this backdrop, we have continued to see significant consumer demand for Gusbourne’s wines, serving more B2B and B2C customers than ever before, and all underpinned by careful ongoing investment in the brand and the unwavering commitment and dedication of our talented team.”
Gusbourne is potentially up for sale after Lord Ashcroft announced in July he is open to selling his majority shareholding.
A review is being carried out with options including a sale of Lord Ashcroft’s 67% stake, a strategic merger with a similar company, and a possible capitalisation of all or part of Lord Ashcroft’s debt or other actions.
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