Having confirmed a business reset to “focus on a core set of super-premium-plus priority brands” earlier this year, VWE confirmed yesterday that the move remains a work-in-progress. While no divestments have crossed the line yet, CEO Seth Kaufmann expressed optimism about the company’s “ability to monetise these assets”.
Some bids have already been received, according to VWE, for the standalone direct-to-consumer business as well as “certain production services businesses”. The commitment to complete the sales was described by the group as “aggressive”.
“This will generate needed focus and allow us to strategically deploy our resources to support a unique branded wine and cider business which we believe can offer accelerated top-line growth … ,” the company added.
VWE, which is listed on the Nasdaq stock market index, also admitted to being late in submitting its results for calendar 2023. The announcement is now due on 12 March.
The challenges facing lower-priced wine companies is not limited to just the US: Only last week, Accolade Wines and Australian Vintage confirmed they are in merger negotiations as the former has been focusing on easing debt while the latter has wrestled with disappointing sales.
