By Denny Jacob
Vintage Wine Estates, a prominent wine producer, has announced the appointment of Seth Kaufman as its new President and Chief Executive Officer. Kaufman, currently serving as the President and CEO of Moët Hennessy North America, will assume his new role no later than October 30.
This change in leadership is part of the company’s broader turnaround campaign aimed at repositioning itself ahead of fiscal 2024. Vintage Wine Estates has been implementing various strategies to simplify its business and reduce costs. These initiatives include improving productivity in bottling and canning facilities, raising prices on several brands, optimizing shipping costs, and reducing its workforce by 4%. These efforts build upon the previous reductions made in March.
To facilitate its restructuring efforts, the Incline Village, Nev.-based company expects to incur restructuring costs totaling approximately $6 million to $7 million. The majority of these costs will be recorded in the first quarter of fiscal 2024.
Despite an anticipated decline in revenue in the next fiscal year due to ongoing transitions, Vintage Wine Estates is focusing on improving margins. The decline in revenue primarily stems from factors such as the depletion of aged bulk whiskey inventory (amounting to approximately $33 million), the discontinuation of the bottled spirits program (accounting for around $6 million), and SKU rationalization expenses (approximately $9 million).
For fiscal 2024, Vintage Wine Estates projects revenue between $250 million and $270 million.
