{"id":95178,"date":"2021-07-15T17:39:00","date_gmt":"2021-07-15T07:39:00","guid":{"rendered":"https:\/\/www.fnarena.com\/index.php\/2021\/07\/15\/full-year-2021-results-online-retail-boom-and-surge-to-independents-pays-off-for-naked\/"},"modified":"2021-07-15T17:39:00","modified_gmt":"2021-07-15T07:39:00","slug":"full-year-2021-results-online-retail-boom-and-surge-to-independents-pays-off-for-naked","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2021\/07\/15\/full-year-2021-results-online-retail-boom-and-surge-to-independents-pays-off-for-naked\/","title":{"rendered":"Full Year 2021 Results: Online Retail Boom and Surge to Independents Pays Off for Naked"},"content":{"rendered":"<\/p>\n

SYDNEY<\/span>, July 15, 2021<\/span> \/PRNewswire\/ — Naked Wines Australia,<\/a><\/u> a leading company that connects Australian and New Zealand<\/span> everyday wine drinkers to the best independent winemakers in the country today announced an increase in local sales, totalling $84.2 million<\/span>[1]<\/sup><\/sup> for the year ending 29th March 2021<\/span>, up by 42%[2]<\/sup><\/sup>. This sees the Australian results sitting in line with the company’s global results achievements.<\/p>\n

These results have been driven by evolving consumer purchasing behaviours, catalysed by the COVID pandemic; with customers creating an online shopping boom whilst at the same time more deeply examining the impact of every dollar they spend, with a strong purchasing stance to support local businesses and communities – along with retention and repeat purchasing sitting at a new high.<\/p>\n

Alicia Kennedy<\/span>, Managing Director (MD) from Naked Wines Australia said, "These results show for Naked Wines – and its growing community of independent winemakers and Angels[3]<\/sup><\/sup> (our customers) – we’ve been able to achieve another standout year for the business, growing even further from what was already a landmark result the year prior,"<\/p>\n

"As we continue to grow our market here in Australia<\/span>, we also continue to grow and push our mission; to disrupt the wine industry through a strong direct-to-consumer (DTC) model which is for the benefit of all wine drinkers and winemakers,"<\/p>\n

"This continued digital acceleration has seen Naked Wines hold its position as the fastest growing and most popular DTC wine business, and the largest in the world,"<\/p>\n

"These results are proof that this business model is in demand, meeting a new shift in consumer needs and providing independent winemakers a much-needed selling model with a point of difference for the industry more broadly,"<\/p>\n

"As the COVID pandemic continues to be a variable and evolving factor for all businesses, our conviction to continue backing local independent winemakers, plus honour all our commitments and fair prices to consumers is no small feat – and one that has given the business clear vision and focus during continued disruption. This mission and our role is something we take on with much pride as a standout example for the industry,"<\/p>\n

"Overall, our results show, the challenging environment has our businesses set up for the future, we have a bigger and better business than before, with customer growth and sales of the best independent Australian wine surging" said Ms Kennedy. <\/p>\n

MAJOR TRENDS DRIVING NAKED’S GROWTH<\/b><\/p>\n

The effects of the COVID pandemic on Naked Wine Australia’s business are now clear, with the company being in an enviable position to capitalise on online purchasing, "In the last year we’ve experienced first-hand the wave of customers flocking online to buy wine during the COVID crisis and they have happily found a home at Naked with an established and reliable retail platform they can trust," said Ms Kennedy.<\/p>\n

"But more importantly we have seen these purchasing behaviours endure post lockdown as Australians realise our business model and platform literally gives customers direct access to our winemakers and their products. Wine lovers can connect more deeply with those winemaker stories and where their wine comes from – we can see this strategy producing impressive customer retention figures,"<\/p>\n

These significant customer trends are generating repeat business in Australia<\/span>, with the results showing an increased demand for Naked’s offering and an increase in contribution from the Australian repeat customer base, which grew 44% in the last year.<\/p>\n

The business believes consumer interests will also continue to be strongly shaped towards local purchasing due to the known issues plaguing the industry off the back of the summer 2019 bushfires, followed by the smoke taint quality challenges.<\/p>\n

"The business has also seen greater interest from consumers as they take on an understanding of how current ‘big bottle’ retail conditions and major market forces can negatively affect the bottom line of smaller independent winemakers,"<\/p>\n

"Being independent means your margins are often squeezed, with little wriggle room, and you are more susceptible to rapidly changing market conditions, with less of an ability to quickly bounce back. This is when independent winemakers need really honest, reliable support from an ethical purchaser that isn’t using these conditions to take advantage of price. We know this is why the waitlist for winemakers to make a home at Naked is only growing,"<\/p>\n

"There has never been a better time to be a business selling independent Australian wine, and there has never been a more important time for independent winemakers to get that consumer support and understanding of the retailing conditions that don’t favour them,"<\/p>\n

Looking to the future, Naked is focusing on growing their customer base in the longer term; with investment in new customers growing 89% in the last year to $10.1million<\/span>[4]<\/sup><\/sup>, "What’s most encouraging is that we have seen a continued strong performance in our Repeat Customer base in the first two months of FY22, so we believe that whilst many people will have undoubtedly tried us for the first time throughout the pandemic lockdowns, the experience is one they see true value in – the best wines, at the fairest prices and at the same time being part of a movement that backs independent Australian and New Zealand<\/span> winemakers vs lining the pockets of big bottle shops."<\/p>\n

NAKED; THE DISRUPTOR FOR THE BETTER<\/b><\/p>\n

This last year also saw Naked Wines release a major rescue fund for independent winemakers facing tough times due to the China<\/span> wine tariff action.<\/span><\/p>\n

The initiative, called Stop The Squeeze<\/a><\/u><\/i>, is the only lifeline of its kind for the independent industry, "We launched the rescue fund and also an ongoing business pledge; to honour all commitments to its winemakers, not to drop contracts, commit to delivering fair prices to winemakers and customers, and finally deliver a AUD $5 million<\/span> rescue fund for winemakers feeling the grip of the tariff hike".<\/p>\n

Stop the Squeeze <\/i>is the latest in numerous greater purpose campaigns for independent winemakers from Naked Wines Australia including;<\/p>\n