Fresh Vine Wine Announces Full Year 2022 Financial Results, Net Revenue up 68%
April 03 2023 - 9:41AM
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 financial results for the fiscal year
ending December 31, 2022, with full year revenue growth of 68% for
fiscal 2022 over the 2021 period.
Rick Nechio, Interim Chief Executive Officer of Fresh Vine Wine,
said, “Fresh Vine Wine is growing year-over-year at a remarkable
rate and leading the way in the fast-growing premium ‘Better for
You’ wine category. This success has led national retailers to take
notice of our “premiumization” of the category, resulting in an
increasing number adding Fresh Vine to their chain authorizations.
We view this as a significant strategic accomplishment that will
rapidly improve our visibility, awareness and availability across
the country. In less than two years, Fresh Vine has
moved into the Top 20% of U.S. wineries by case volume size,
according to *Wine and Vines Analytics, and this national platform
provides the foundation to achieve our goal to move up into the Top
5% within one to two years.
“Fresh Vine Wine is now one of the most awarded wines by taste
and quality in the ‘BFY’ category and due to our leading premium
brand positioning, retailers are increasingly opening new
opportunities for us because Fresh Vine Wine is driving their
incremental dollar wine sales. I’m excited by our growing momentum
and popularity to achieve even greater heights in 2023. The build
out of our platform across all 50 states is expected to be
completed by summer 2023.”
Updated Business Highlights for Fiscal 2022
- Expanded our portfolio of Premium Better for You wines from
three to seven varietals
- Invested $3.7 million in inventory, valued at nearly $8 million
at year end 2022, which will be used to meet our growth objectives
for 2023
- Right-sized and strengthened our organization, streamlined
operations, and reduced our monthly operating expenses by
approximately 50% beginning in Q4 2022
- **Successfully established premium brand pricing, with a $17
average price point transaction at retail, a $5 premium over
leading competitors. This is especially important to national
retailers, who value this “premiumization” of the category because
it represents potential incremental revenue
Retail
- Increased our number of stores during 2022, from 468 in 2021 to
3,073
- Total number of PODs rolling 12 months now stands at 6,808
- Fresh Vine Wine Sauvignon Blanc is now entering chain retail,
one of the most popular wine varietals, which we believe will drive
incremental sales
Geographic Expansion
- Deepened and expanded our wholesaler relationships, now with
four of the five largest domestic wine distributors
- Successfully opened distribution in 47 states, the District of
Columbia, and Puerto Rico in 2022, and launched our product
availability in the omnichannel with leading ecommerce beverage
retailers, which many offer same day home delivery
- Plan to be at retail in all 50 states by summer 2023
Direct to Consumer
- Direct to Consumer (DTC) in 2022 represented 32% of net
revenue, compared to 46% in 2021.
- DTC shipped to 6,304 ZIP codes in the U.S. during 2022
Fiscal Year 2022 Financial Results and
CommentaryNet revenue in fiscal 2022 was $2.86 million, up
68% from $1.70 million in fiscal 2021. Growth was primarily
attributable to our increased presence in the wholesale market,
where we continued to expand our distributor network and geographic
presence, and the launch of our wine subscription club, which drove
direct-to-consumer sales. Fiscal 2022 wholesale and DTC revenue
were approximately $1.7 million and $911,000, respectively,
compared to approximately $772,000 and 774,000 during fiscal 2021.
The Company’s 2022 operating expenses were $11.4 million. During
the year, the Company purchased additional inventory as a strategy
to mitigate industry supply chain disruptions. In addition, the
company heavily invested in sales and marketing activities and
increased staffing and infrastructure to position the Company for
future growth. In the third quarter of 2022, the Company put in
place several cash preservation initiatives that remain
ongoing.
Liquidity and Capital ResourcesThe Company's
cash and cash equivalents balance as of December 31, 2022, was $2.1
million. The Company has no material debt. In March of 2023, we
concluded our subscription rights offering, receiving net proceeds
of approximately $2.7 million. We intend to use these proceeds,
along with proceeds from sales of our inventory, to fund our
working capital requirements and for general corporate
purposes.
Press contact – FreshVineWine@jonesworks.comIR contact
– Joeh@gregoryfca.com
*Source: Wine and Vines Analytics**Source: Nielsen Scan 52 weeks
ending 2/13/2023, Total US x AOC + Liquor Plus + Conv
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. 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. Fresh Vine Wine positions its core brand lineup as an
affordable luxury, retailing between $14.99-$24.99 per bottle.
Fresh Vine Wine's varietals currently include its Cabernet
Sauvignon, Chardonnay, Pinot Noir, Rosé, Sauvignon Blanc, Sparkling
Rosé, and a limited Reserve Napa Cabernet Sauvignon. All varietals
are produced and bottled in Napa,
California.Forward-Looking StatementsThis 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, our ability to achieve positive cash flow from our
operations on our anticipated timeframes or at all; the launch of
the Company’s wines with national grocery retailers and the impact
of such launch the Company’s operating results; 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 are or
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.
Fresh Vine Wine (AMEX:VINE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Fresh Vine Wine (AMEX:VINE)
Historical Stock Chart
From Jul 2023 to Jul 2024