December 2021
IPO Provides Capital to Accelerate Growth Strategy
2021 Revenues Increase 681% While Fourth
Quarter Revenues Grew 19% Sequentially Compared to the Third
Quarter, Reflecting an Acceleration in Momentum and an Inflection
Point in the Company's Growth Trajectory – With Most Growth
Occurring Prior to IPO Funding
IPO Proceeds Deployed to Grow the Brand,
Increase Awareness, and Procure Inventory to Sustain Strong
Sequential Momentum in 2022
Over 1,000 New Points of Distribution Added in
First Quarter, More Than All of Last Year
Celebrities Nina
Dobrev and Julianne Hough,
Initial and Ongoing Investors, Continue to Enthusiastically Endorse
FVW Celebrating Partners and Product Launches Among Their More Than
30 Million Social Media Followers
MINNEAPOLIS, March 31,
2022 /PRNewswire/ -- Fresh Vine Wine, Inc. (NYSE
American: VINE), the premier producer of premium lower carb, lower
sugar, and lower calorie wines in the
United States, today reported strong financial results for
the three months and fiscal year ended December 31, 2021, including year-over-year
annual revenue growth of 681% from $217
thousand in 2020 to $1.700
million in 2021.
![Fresh Vine Wine (PRNewsfoto/Fresh Vine Wine, Inc.) Fresh Vine Wine (PRNewsfoto/Fresh Vine Wine, Inc.)](https://mma.prnewswire.com/media/1745415/Fresh_Vine_Wine_Logo.jpg)
Janelle Anderson, CEO of Fresh
Vine Wine, Inc., said, "I am extremely proud of our team, which
grew the business both for the year and sequentially in the fourth
quarter by executing on extremely aggressive marketing and
go-to-market strategy, while concurrently completing our IPO.
This reflects an inflection in the company's growth trajectory and
is indicative of the results we expect this year. We have already
put the IPO proceeds to work building our brand, investing in our
people, and procuring inventory. In the first quarter of 2022, we
added over 1,000 new points of distribution (PODs), which is more
than twice the 900 PODs we had at time of IPO. We believe that this
leading indicator, coupled with our increased inventory levels,
suggest accelerating revenue growth and strong first quarter
results."
Ms. Anderson continued, "The speed of our expansion is
remarkable, which speaks to the quality of our sales and marketing
strategy and the pedigree of our organization. Our success
reinforces the viability of consumer demand for our
category-defining, premium tasting brand of lower carb, lower
sugar, lower calorie wines. We plan to continue this positive
trajectory in 2022 by introducing new product offerings and
expanding our marketing efforts, in part by leveraging the 30
million-plus social media followers of our celebrity spokespeople
and co-founders, Nina Dobrev and
Julianne Hough. It is encouraging
and rewarding to begin this year with significant positive
momentum."
Recent Business Highlights
- In December 2021, the Company
closed its Initial Public Offering, raising net proceeds of
$19.2 million
- Added 1,000 Points of Distribution in the first quarter
Retail
- Launched in our first national "C-Store" where we have been
authorized at their more than 1,600 California locations
- Securing a top national convenience store chain to carry our
wines in the state of California
is a true breakthrough for Fresh Vine Wine and further validates
the demand for our lower carb, lower calorie, lower sugar premium
wines
- Secured placement at the newest resort on the Famous Las
Vegas Strip
- FVW wines premium Cabernet Sauvignon, Chardonnay and
other varietals will be featured at 22 various venues at the newly
launched Resorts World Las Vegas
- Expanded partnership with retail grocer, Hy-Vee, for the
distribution of our premium Limited Reserve Napa Cabernet
- To be featured at all Hy-Vee stores in the Upper Midwest
- Announced a partnership with CRAVE American Kitchen &
Sushi Bar
- Featured as a premium wine pairing and frequently recommended
as the perfect complement to their special lunch and dinner
menus
Geographic Expansion
- Expanded into 6 new states in the first quarter of 2022,
including Nevada coincident with
the Resorts World launch
- FVW now available nationwide, one of the Company's key
strategic priorities.
Direct to Consumer
- Experienced record-breaking single day sales on two
separate occasions, reflecting the impact of our social media
marketing strategy
- Record demand after major shareholders Nina Dobrev and Julianne
Hough appeared across national media following VINE IPO day
and then again after their appearance on The Ellen Show
https://bit.ly/36VuRd4. Expect more exciting appearances
representing Fresh Vine Wine by these highly influential
celebrities
New Product Release
- Released a fifth varietal, a Limited Reserve Napa Cabernet
Sauvignon
- The introduction of this premium wine represents further
progress in our business objectives to leverage our presence at
retail to increase distribution and fuel future growth.
- Announced the bottling of our 2021 Vintage Rosé at 21 times
the quantity of 2020 Rosé bottled
- After selling out the entire 2020 Rosé Vintage within months of
bottling, now bottling the 2021 Vintage Rosé at 21 times the amount
of Rosé bottled for the 2020 vintage.
Fourth Quarter and Fiscal Year 2021 Financial Results and
Commentary
Net revenue in fiscal 2021 was $1.70
million, up from $217,000 in
fiscal 2020. Growth was primarily attributable to our increased
presence in the wholesale market, where we significantly expanded
our distributor network and geographic presence, and the
introduction of our wine club, which drove direct-to-consumer
sales. Of total 2021 revenue, $773,000 was from our wholesale distribution
channel and $774,000 was from our
direct-to-consumer sales channel. As fourth quarter revenues
were affected by an inventory drawdown precipitated by very strong
demand, the Company used this period to accelerate the timing of
the launch of its Strategic Services segment, which netted over
$150,000 of revenue in the quarter,
and is expected to continue quarterly in fiscal 2022.
Selling, general and administrative expenses were $4.79 million for the fiscal year ended
December 31, 2021, compared to $1.33
million for the fiscal year ended December 31, 2020,
largely driven by increases in Selling, Marketing and General &
Administrative expenses. The year-over-year increase in Marketing
expenses primarily resulted from our sports marketing partnerships
while the increase in General & Administrative expenses is the
result of increased salaries and wages needed to support the growth
in sales. Selling expenses generally follow our sales volume
growth. The Company reported a net loss of $9.97 million, or ($1.12) per share, for fiscal 2021, compared to a
net loss of $1.29 million, or
($0.21) per share in fiscal 2020.
Liquidity and Capital Resources
- The Company's cash and cash equivalents balance as of
December 31, 2021, was $16.1 million. The Company has no material
debt.
About Fresh Vine Wine, Inc.
Fresh Vine Wine,
Inc. (NYSE American: VINE) is a premier producer of lower carb,
lower calorie premium wines in the United
States, kicking off a 2022 growth plan following its IPO in
mid-December 2021. Fresh Vine Wine's
brand vision is to lead the emerging natural and accessible premium
wine category, as health trends continue to accelerate in the US
marketplace. The 2020 US wine market was a $69 billion category. Fresh Vine Wine plans to
accelerate growth in 2022 by amplifying its marketing, expanding
product offerings, and expanding its team. Fresh Vine Wine
positions its core brand lineup as an affordable luxury, retailing
between $14.99-$22.99. Fresh Vine Wine's varietals currently
include its Cabernet Sauvignon, Chardonnay, Pinot Noir, and
Rosé.
Forward-Looking Statements
This press release includes
forward-looking statements. These forward-looking statements
generally can be identified by the use of words such as
"anticipate," "expect," "plan," "could," "may," "will," "believe,"
"estimate," "forecast," "goal," "project," and other words of
similar meaning. These forward-looking statements address various
matters including statements regarding the timing or nature of
future operating or financial performance or other events. Each
forward-looking statement contained in this press release is
subject to risks and uncertainties that could cause actual results
to differ materially from those expressed or implied by such
statement. Applicable risks and uncertainties include, among
others, the Company's ability to hire additional personnel and to
manage the growth of its business; the Company's reliance on its
brand name, reputation and product quality; the Company's ability
to adequately address increased demands that may be placed on its
management, operational and production capabilities; the
effectiveness of the Company's advertising and promotional
activities and investments; the Company's reliance on celebrities
to endorse its wines and market its brand; general competitive
conditions; fluctuations in consumer demand for wine; overall
decline in the health of the economy and consumer discretionary
spending; the occurrence of adverse weather events, natural
disasters, public health emergencies, or other unforeseen
circumstances that may cause delays to or interruptions in the
Company's operations; risks associated with disruptions in the
Company's supply chain for grapes and raw and processed materials;
the impact of COVID-19 and its variants on the Company's customers,
suppliers, business operations and financial results; disrupted or
delayed service by the distributors the Company relies on for the
distribution of its wines; the Company's ability to successfully
execute its growth strategy; the Company's success in retaining or
recruiting, or changes required in, its officers, key employees or
directors; the Company's ability to protect its trademarks and
other intellectual property rights; the Company's ability to comply
with laws and regulations affecting its business, including those
relating to the manufacture, sale and distribution of wine; claims,
demands and lawsuits to which the Company may be subject and the
risk that its insurance or indemnities coverage may not be
sufficient; the Company's ability to operate, update or implement
its IT systems; the Company's ability to successfully pursue
strategic acquisitions and integrate acquired businesses; the
Company's potential ability to obtain additional financing when and
if needed; the Company's founders' significant influence over the
Company; and the risks identified in the Company's other filings
with the SEC. The Company cautions investors not to place
considerable reliance on the forward-looking statements contained
in this press release. You are encouraged to read the Company's
filings with the SEC, available at www.sec.gov for a
discussion of these and other risks and uncertainties. The
forward-looking statements in this press release speak only as of
the date of this document, and the Company undertakes no obligation
to update or revise any of these statements. The Company's business
is subject to substantial risks and uncertainties, including those
referenced above. Investors, potential investors, and others should
give careful consideration to these risks and uncertainties.
Contact: freshvinewine@jonesworks.com
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SOURCE Fresh Vine Wine, Inc.