While most businesses face the Covid-19 pandemic wrath, a home delivery wine company increased its profits by sixty-eight percent in the past twelve months. However, despite soaring profits, the business’ losses are widening as it focuses on expanding and growing its market in New York. The home delivery wine company hit £10.7 million losses compared to its previous year losses of £5.4 million.
Fortress Investment Group noted that Naked Wine’s profits result from regular customer contributions that enhanced its profit margin by thirty percent. However, it is surprising how the home delivery wine company’s losses increased slightly even with its customer purchase costs. But investors are motivated by the increasing sales.
The online wine sector is increasing its volumes as Stay-at-Home is becoming the trend, and Naked Wines is making the most of it, intending to shift all its services online. Naked Wines has teamed up with over 235 winemakers in more than nineteen countries to ensure they improve their offers. It also provides financial support to 36 countries through a $5million Coronavirus relief endowment.
As Naked Wines enhances its scope, Fortress Investment Group noted that they would focus more on the United States market as it is believed to be worth $20billion. The home delivery wine company reports that in New York, sales hit up to 78%, driven by constant orders, demand, and awareness from similar customers. In the United Kingdom, sales hit 66 percent, driven by the same factors.
According to Fortress Investment Group, Rowan Gormley founded Naked Wines in 2008 and has since then served as the Chief Executive Officer until recently when he announced he would be stepping down and handing over the company to Nick Devlin. Rowan trained as an accountant in his early years at Arthur Andersen and later moved to the United Kingdom to work in different companies like Electra Private Equity. He has also founded other wine businesses in partnership with investment groups like Fortress Investment Group. To learn more visit: here.