VWE - Earnings call transcript Q1 2022 | Vintage Wine Estates, Inc.

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Operator

Greetings, welcome to the Vintage Wine Estates, Inc.

First Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. the for to Vintage turn Pawlowski, host, now Relations Investor Wine will conference your over Deborah I Estates.

You may begin.

Deborah Pawlowski

Thanks appreciate your in everyone. We and hello interest Estates. Vintage Kyle your Wine time and today certainly

as and on call growth our Terry our outlook Pat first we year CEO; our and quarter call Founder our provide as will results Kathy Wheatley, are Roney, open fiscal President; Pat will Joining 'XX. our for discuss the fiscal an for and After Terry DeVillers, well and questions. our strategy CFO. today for overview XXXX of which, the

could As These you factors documents Q&A release at other aware, cause today. will filed differ imply that found and here to other events statements the here These with and to risks session discussion, uncertainties formal with forward-looking our probably make outline website from at provided be sec.gov. are the during stated we and as future documents this statements Securities well during subject are Exchange materially where uncertainties actual we as well are factors well as results which X. Commission. and as risks Slide as that are some can in other These or as the on

we financial call, measures, useful performance. our we will non-GAAP today's discuss some be During evaluating believe this in will

Terry presentation Terry? will results turn -- the this information or to sorry turn additional consider will X, not of accordance With Slide I to in it prepared for should with begin. Pat that, a to You substitute I'm in isolation over GAAP. as you

Terry Wheatley

us We times market building over importantly, Estates we're And X% and the supply by our omni-channel share, supplies suppliers headwinds welcome over opportune and COO, deal juggling working making Joy, operations need growth to infrastructure. everyone. customer excellent meet and quarter in chain business. at with our grew while our exciting was And here Vintage other revenue requirements. help presented at Wine growth our glass up has this gaining direct-to-consumer year, current Deb. and joined stronger finance to and we strategy, challenges. a Thank last of advancing had in an multi-brand and against the progress us Russell XX% a These are to you, get very time new

Looking to content The customer base, that branded best fulfillment. practice supported to e-commerce launched is celebrity direct-to-consumer first and integrated VWE growth our appeal rich is to efforts, VWE information retail with established success. store an ever store vertically production, with proven management digital to and the in e-commerce delivery

the and alignment. are us in digital retail movers touch as love X directly frontier We We who store marketing e-commerce our clear celebrity arena model differentiator first in believe our is next to we wines. million the a close this individuals for strength believe is in

We our as drink expect to leverage ready offerings to well. this channel with

adjustments right the providing strong, engaged processes needed to a and Looking but solid support a people processes review on to accounting variances processes. incremental throughout structure. staffing. have organization we to the a are finance They ensure and the suggested sustainable control to oversight and accounting inventory and and the costing our also reliable consultant to infrastructure to finance being to Slide the in efforts We X, making of demands strengthen our the public progress our address the company, our we're

adding addition We a our RTB to providing to the Cider ACE acquisition today review channel announced also brand, the will our a leading greater detail, Company. new but it's of business an the to and diversity excellent offerings, progress market. in Pat greater out Cider us continue with acquisition building a and

as brands we we QVC, digitally rooms, the you remain direct-to-consumer mentioned, segment, direct-to-consumer native have business three of wine efforts our ecommerce, amplify tasting our In channels. evenly X, Slide fairly as telemarketing, consistently see XX% we clubs, through and among our I Company. to of Turning channels, our Sommelier addition will significant many balanced including growth the

Our capabilities driving growth. combined marketing tier are first our digital top our philosophy customer with

leverage loudly We our celebrate wine across XXX%, traction to excellent direct-to-consumer retention, our ecommerce tactics, in club average channels. in advocates customer drive to was tasting product continuing brand in customer increased traffic, recognition improvement marketing Volume had membership operating growth are up Our and next. for and up digital key improved transaction experience. our XX% in Of significant and all X%. room superior reflecting note, an order was sites and value income gain

benefited revenue was wholesale, that to product favorable this margin than reflects mix. programs brand and marketing more we discontinued last and This favorable international product Moving volume first the up X% minor increased Strong offset year. in about our from quarter since on the also business mix. and more some

share. winning Our market prime brands are

the label in this to our are And the for Bar brand. the glass be to depletions. average. our this in in that above solid getting continually and XX% were fashion drive production sales. evaluate up timely brands challenged by with manage brands very meet We a industry order remained Cohn, grow Cherry distribution of next, BXB, enough to is engagement and business, demand encouraged the Kunde, difficulty by Firesteed, customer portfolio because is continue which channels the our to segment services. and where Dog Pie our reception also determine of succeeding BXB retailers of private Shipments We schedules. dog B.R. continue for are almost consumers and to

XXXX. quarters as months As had the in These of to last third programs well. and shipping we rescheduled are continue retailer a result, and fourth a through shipments major we'll to now, fiscal the nine

the should will later me results, our new Pat for acquisitions support quarter more to proposals retailer recent a also We from we our our materialize large BXB customers outlook. several see that, and third in have turn that With as talk it by commitments business the BXB quarters. well as let other a to about over with Pat?

Pat Roney

good Thank afternoon, Terry, you, and everyone.

first portfolio, addition to I'll is our X, Slide ACE recent This craft acquisition to on great most a ciders and and country. This Cider. our adding of our the ACE portfolio network. market ready drink research turn touch to beer drink products. in a our is wholesale opportunity extends complements ready distributors one our fastest to by new market for of channels creates growing to the growth to you'll our If also

includes We also to located and in a ACE number is providing the not for year. pineapple cider. is platform and cider orchards. of ciders second and far measurably founded and in DTC Vinesse, is full order such in this fiscal faster platform, Sonoma growth ready our has and County, digital increase marketing our United world's for our apple just member a as leverage to start. quarter, the product It is region see flavored the fruit award was is the portfolio grow original the average This enhanced States. new acquisition team wine off but At The our moving hardest on is fruit acquired as membership. forward beginning value this which XXXX brands. of great thus capabilities one to selling we and the as tap ACE premium another well-known as also winemaking, drink diversification, winning

acquisition is As complemented our I've that strong have noted growth before, we strategy efforts. with a organic

fiscal and acquisitions Our remains XXXX. we acquisition are robust, expect not that pipeline we for finished with

the X, to can the results dive quarter. for further into we Slide Turning

While were resulting for in have revenue XX%. delayed $X revenue from up shortages, the was not been quarter class in the would X% up million over shipments

will of We be it the spread year. volume, and last nine still ship months that will over the

to because any these losing are challenge. of doing confident ahead stay we're leave fact business good we're job not relatively We And the in of constraints. a

growth from up Terry we As acquisitions, included volume was and segment our XX%. had mentioned, up rest in This with very XX%. DTC growth the organic XX% strong revenues

$X.X marketing basis luxury brands focus our the programs is margins was and with and points, XX% up over Wholesale acquired which X% focus also year-over-year, expanded depletion growth margin. We X%. Organic revenue up as up the strong approximately Our volume in importantly was million operating growth. is focus encouraged was throughout included nearly XXX XX% well, our on in This brands. and for but revenue. segment X% reflected our on priority with were growth

quarters. strong for product we $X not XX% improved expansion this in glass BXB shortages that XXX for drove of as future the I segment reflecting on the We're product Our by but the about Margins have mentioned had still that good also about hampered million growth were dampened focus well. in and mix. good XX%. was processes if points XX% margin shipments brand would of in this benefit somewhat to segment basis relatively management mix delayed

impressed with of the to expecting having are pervasive we team we that the been nimbly these is has chain, supply challenges shortages. impact the quickly easily world. significance will of the accomplish the I'm throughout or given While given are not be resolved able our addressing

margin and in X, 'XX. expect turn to expenses you'll If EBITDA nonrecurring we about to is was million adjusted XX.X%. was Slide in Included company roll that fiscal million EBITDA public in X.X that amount off $XX.X

year. by the $XXX,XXX in per expenses about In these of should half quarter decline fact, second the

we the calculations, acquisitions. will the our financial any Slide bottling not strength, our expenditures insurance fees upgrading in growth as and plans. our business, income But does for and our still business capital high timing we still based will While company expect relatively million us our into expectations changes by of about future. are rolled to for the the it warehousing expectations modest our is size. X our adjusted on of to forma the DNO today. expansion first The quarter. demonstrates it which prospective a professional XX, Slide unusually providing you be an includes the to $X EBITDA net and CapEx current These execute that see maintenance pro include which guidance benefit capacity flexibility certain include provides of million finance our for $X On

least we'll acquisition in expect 'XX. do I Although fiscal execute one at more

does of the would it our in to Given of million. our million because by the range that helpful about quarter, a will the $XX At fiscal expect provide about expectations. this represents in million constraints of the be effect XX% that range, We factor. $XX to growth million. we supply we believe are that will over includes that XXX revenue quarter's midpoint guidance, thought and revenue to 'XX. range chain see XXX seasonality remain be Vinesse, the quarter considered This risk we revenue but raising also have of next we've also in second the And we

unprecedented we the supply fiscal continue price the meet year. available lovers expect alternative carefully to shipments identify capture supply throughout to all customer's and impacting manage navigate pull everyone, as demands We and chain to constraints to sources work

$XX We the XX% $XX year to margin in expect range million midpoint. million adjusted be the a the EBITDA about to or at for

these are Vintage Wine exciting that continue turn XX, you really times If to Slide Estates. at

Over a our executed the last delivers have plan years, growth, a that customers. we proposition for excellent XX value having unique

value accelerate call and As open our believe we With talent, on vision, for we strategic that, we advance the larger can our strategy, stronger a even with and Kyle greater we financial flexibility. can questions. delivery Deb,

Operator

we first question-and-answer be this Azer will with Please conducting from is Thank time, At with a Vivien question. Instructions] question [Operator your you. proceed Our session. Cowen.

Vivien Azer

first Pat, So for my is question you.

remarks I'm that of coverage I trying you're across. CSC, prepared pricing. you message was my there? much seeing You're to not alone snacks. be a pricing could that's you're you as sorry, to as a if more You specific could, leaning little the distilled get your think that noticed paraphrase. that spirits, salty throughout terrible beer in the and as But bit lever I many end universe, certainly places just going was that into wondering,

is how in pricing. like terms rate seems for But any environment and ripe your pricing do you it about nuances segments? So across whether think there of business are the

Pat Roney

anything we're Vivien, cost so signal industry at time increases. the direct-to-consumer. probably think, items, to glass across channels, that to the each this And of in and or and because industry the other price strategically looking in not we we'll starting do be of the alone increases that

of after a hard holiday amount we expect third the in price opportunities the no fourth that there increases, segment, control the plans, also fair at will going to be area. revenue, the that expect brands some guidance some to take Christmas of do a And our in while some and our we that look there reasons into have take we're then And baked season. and in fully our and quarter. or are We wholesale price into baked

Vivien Azer

that in about headwinds was can yet second is format? The please drink filters my to following some of congrats acquisition me you maybe then, route that in to attractive been other cider. that. But and And think lot in about on I what talk of other the hard own asset, little market subject participate Cider questions announcing volatile, insider specifically to ready competitive makes opportunity categories your sense portfolio. on a a example operators in bit on weight RDD to one that terms

commentary on very be kind will beyond distribution you. any rationale So the of helpful? strategic Thank

Pat Roney

excited hasn't because market, for for location expand our potential of categories. with new East the those growth some expansion of these know, into been So abilities Vivien year with out I but production one growth stay we to on capabilities strong see a to brand the it the segments. and Coast, of opportunities XX% cider, chosen significant seen you see which other in there. And seltzer think organic dual we a specifically that the we flavor And introductions by every as impacted is of

we so, strong what acquisition. we And that. distribution for to we that before. is we very factors And the combinations opportunities believe those the by the that product were innovation category. of we were that obviously And a us are mentioned lead attracted ideal by And have pipeline attracted new this

Vivien Azer

industry it before direct if along. lot comment on Europe, you. in be tough portfolio? I speak sourcing given a perhaps question has minimal, think the presents around your I would the in But that, USA for addition pass can how any by your would that opportunity to geography. me, business, that spilled been then, to been you wondering Thank just ink For particularly There's can implications you of for your

Pat Roney

strong, So, they challenging will and significant some the by expand certainly is expand this and price we a to so certain us. for did believe harvest Europe into in strong think year, that additional and that's Washington we the for create a category opportunity have very wine very, and markets points that a take move overall and potentially price opportunities distribution California growth Oregon

Terry Wheatley

Also shortage in over Can is California I sparkling front, really coming our nationally. the we're holiday, have add sparkling the Laetitia on with that for Pat? to that, this sparkling launching of we brand

We have to the out into from that. bottle are are fill we the shortages the we coming Paula Kornell brand, marketplace every that getting can sparkling

Vivien Azer

you shared. Thanks colors for that incremental

pass to quick to the it one you supply Just and I follow-up of that sparkling fewer relative will the Do promise standard for satisfy along. terms in format I turn P&L? restraints have would

Terry Wheatley

some that. up building have Laetitia. we we our still on constraints. in path have is but Paula Kornell, -- focused supply we're some that Well, We some out have do We're that down on really ramping do something is on supply

Operator

with Davidson. Our next from Baker your question is Michael Please with proceed D.A. question.

Michael Baker

I'd and you XXX to bit. pro now into guidance the the in since a little on that that this previous including And time ask about was guidance? the a I the forma versus different like prior presume, dig to the own to XXX XXX guidance basis. them, as acquisitions, guidance What's XXX

of guess Has get all? adding? The own these acquisitions the on annually, that acquisitions million will XX XX the maybe million calculate I the year just at And guidance what organic what's organic underlying is I so guidance? the if that is said for the actual trying at that forma add based changed underlying you timing difference? when it is, I'm I they So Or way which you're about XX is and them. guess million to pro versus that, a to is

X% XX%, the underlying be growth the to be way would to think midpoint. more Is it? would like about of right that about So XX%

Pat Roney

Yes, Michael.

our guidance from of be included organic perhaps of when numbers, thinking original And with which friends, pro our are forma we be that shouldn't was we forma a did at correctly. which we gave our doing. still analyst we actually should full We're XX%. now it about in growth our targets and you about actual So feedback guidance, line looking just we're pro providing is months XX what the

now upon XX the So, in basis, based forma for on acquisitions taking when them they in. we're months, a we're not benefit we're those come of having pro showing

acquisition bit pro stronger would actually basis. a a it numbers forma the real what makes on so, numbers, it little And than be

Michael Baker

Go Terry. Oh, actually. Yes, sorry. ahead, right. I am

Kathy DeVillers

Kathy. No, is this

to future built got portfolio. that that the that, Sorry, in I just the acquisitions And pro the doesn't only wanted include acquisitions forma either, yet, even our so for time actually any previously, in. which we've it's make it sure had

Michael Baker

all bottom So I in the guess, previous line any guidance just your cut but is. to change outlook, non-acquisition that, guidance? through Is there the the current organic, versus

Pat Roney

get second quarter don't bit changing we any through to specific. that. No, which at maybe it's of our look little is want XX% our We want at of biggest before to a still to but our we get quarter, upside,

Michael Baker

clear. I acquisition $XX as an an sure some that now, well there didn't on it's the different respects, up. just want basis in annual presenting clear, are made thought Right because make up you because, go sure could I it's say, ways what to add it. of million yet, make That's number you here really But

it's think want make the better it present sure is to the present it's to you're the But little is So way to now way, a confusing. I way change. By way right clear. it. I a just doing is it the

So that bit do just little confusion, wanted a to of clear they maybe up. so could

thanks. Okay,

sense. I think that makes

from some business, glass you of that if will? the to call, little able means shortages when just go that an roll so after did to bit know, the once sort talked downhill your that I on to there. ship wondered But being when time. to, the I not issue and that really last shortage, Was about impact of shortage we did start a to actually start you it guess, some Secondly, starts things,

Pat Roney

late be experiencing in inability to And to very, early hacked was deliver July. July, that's glass. very to when So started our look major basically glass June, they supplier early

couldn't partners chose to to the enough, only couple sure that's ready when when have full in our inventory but And we launch retail out we first they move that can to So programs it to in a make not also chose their bottle quarter. programs. of were they started

Michael Baker

One could. more, I if

partners maybe like or at wholesale I spring, then some some looking progress about about big of think in terms And new potential their of year. the from doors your where is time or resets that are to your even of they're partners, seeing anything for start your that? think faces retailers the about or what you now the retail how might partners be They're next new product? anything for

Kathy DeVillers

our retailers announcing next a Actually, the weeks. of early most in are for that. big bit Well, two calls little this

target We going expect the what but December. doing to they first it week We're in an they're some of numbers -- we in have expecting Kroger's got idea there. writing out will be put

have yet. We Walmart not heard from

new their -- right So, us and inks now are those in week we're set what dried But a to in announcements. March. say we got we're every on and position we getting tell would the

Operator

with Our from question. next question proceed is Canaccord. Luke your Hannan with Please

Luke Hannan

you also and you've the of wine also in there there, club on your trends maybe versus successful start into that showing the, and about both able been with pre-COVID tasting I trending customers volume members? growth guess, the seen throughout traffic customers you're that cadence specifically, of to those how you're it's rooms, talk this, the, just convert being guess, how of specifically organic seeing some to and during levels, have through want I the the the on and Can the I trends quarter, would you that quarter.

Terry Wheatley

one. Pat, take maybe I'll this

into the year back of the demand was there time. last And level, get syndrome, back to same lot coming back I tasting up a into since at think and how we're for pent rooms. out doubled pay has the about so is excited to the traffic traffic XXXX the people get Our

traffic got We affected to that terms visitors just we room our are clubs. a ran service We making that people tasting conversion sure headwinds maybe wine in of is into few out staffing into into be or locations having clubs. wine great being really correctly and and for conversion we've really from our had

now XX% right XX% to looking We are club. in say We get the range. back over we into to at hope that conversion are wine

but So that. that's good, we in a we we're down. also still number wine will we going the see clubs do better know that our in feel can say very attrition really we I healthy But seeing

down In is fact the XX%. attrition

club things, a say wine corkscrew slow So personal those with on or our put the as packages, club just like things, really how but a it -- that actually want focus or attrition, during gifts, the and members seed it thankful during sounds putting for putting white pretty what we packets, attrition to we really something silly like notes the the, small COVID notes COVID service, simple glove happy. tiny curved putting And or rate in pretty, keeping we're that. that those down wine

Luke Hannan

these far can these companies to like be as by to increases, already that premium, seen what I I healthy price consumer able fact one, paying very, seems increases, Another experience seeing our as what for a is, a guess, beer it coverage to for through products. if just of the passing you're there's aided from inflation universe probably used and I premium specifically propensity sort in customers price thus we've well imagine. That's are the

erosion you of you're from price they're willing, demand price you expected? guess, maybe of possibly anything passing what have feel end seeing to increases? I would Have increases. much it demand, pretty these Or in through terms seen So where your elasticity on more those is

Terry Wheatley

would say, just a our few in increases we've Well, price I done direct-to-consumer.

$X.XX case. add $X bottle, to able on You're a a impactful or which is

slowdown We any that. from pushback heard any seen or haven't

have been direct-to-consumer. we start to looking at primarily So able

holidays, haven't wholesale And We get the side. with see Pat to can through competitions we we we doing until what see as that. on increases intend we where could taken price any don't our go said, we

pushback tiny price kind any loss the haven't on of really them. or direct-to-consumer from we the or in websites, sales increases ecommerce haven't some we've our our small taken in So of but we seen

Luke Hannan

You about have the you to can to I we, months that? and me on expected? it current in of for back your the business, is is with like or should sort that one expect on share times pass different something if coming you to down profile what Last you eighth curious, would say and just be it in what maybe there? should Pat, we multiple guess XX it it I'll margin Is get five line acquisitions the expecting the paid just historical

Pat Roney

in do this, So synergies, margin that'll for down multiple. see to that probably able I the we opportunities the go closer in then of to expect some don't turn fairly bring growth, it multiple the rapid currently down in to side fully of expect that to way down synergize justify XX the we we and around quickly. terms an on to are But XX it and acquisition basis, we are we multiple that times all

Operator

with is Our proceed Wendy from your Please with next Nicholson question. question Citi.

Wendy Nicholson

question First premise on premise? And the out see? or changing acquisition, is of Cider of that their what versus percentage balancing say is that off you on balance did part just the opportunity business that distribution you

Pat Roney

fair West new into Coast. We some stronger rapidly. of that Coast and East ACB, into chain guava the in a The XX% XX% their is as heavily expansion. there's expanding of actually of pineapple the a see and mango in around strong XX% to opportunities We geographical more They're the terms growing such amount flavors if see distribution.

starting to bottle pandemic. So, business on-premise that is And them good area. after business as for as a seen well the their their we've improve is the cage

national major retail we it. don't on, the not on. we But than more more the perhaps shift see at there's they're towards on and significant accounts the call premise opportunities that some on-premise going So, exception, currently of segment a with potentially

Wendy Nicholson

view But wine be looking And change what So at, Any side, broader neat a in might characterize in you're looking portfolio the then acquisition the here? could the have of our sort sounds on portfolio. next into terms to terms you at just think from for it you your primarily? of you're at things fit and TDs. what looking a your you we're fit for like of

Pat Roney

don't indicated on, still think of on wine that couple plug-ins And early innovation then of at. see that's vast to And it. it's a side on plays side, see on that side acquisitions more the These many we've winery more main I we it. the been majority it. ready I really I in drink of are acquisitions, to their back that of largely the looking very ones more,

Wendy Nicholson

dotting last that. person the thing, and at Do the about affect consultant timing look of hired you acquisition, doing you sort think is then could like internal of inventories made the and you or that pipeline sort of you've And oversight of just sort how what comfortable comment processes things your your to of are is there forward? got track But to we're and of slow great moving of crossing things you've integrated in well, does terms a down having them make acquisitions record seamlessly. sense long I to We guy making and his whatever? know or novelties the got any all and that eyes. sure work

Pat Roney

continue continue to that this and comfortable with to moving and acquisitions to make business. our we're No, pretty the we're with forward our acquisition ability comfortable pretty strategy. We're grow

to down. intended not we're So, anything slow

Operator

next is Biolsi Our Daniel with proceed Instructions] your from question [Operator Please question. Hedgeye. with

Daniel Biolsi

and for Can California harvest costs the you on provide availability implication an grapes? update for

Pat Roney

lightened harvest and standpoint, certain rest actually the was unblocked a varietals of suddenly rest premium lightened segments. normal. and pretty Northern was a California So standpoint, the good it quantity the in harvest. California From was light pretty The cabernet quality and

So I as in don't of see a any that. significant issues terms of result pricing

Daniel Biolsi

delayed have tell the ASPs would the strength? you much And lower, can If gross that were sort for business had us million of be could margins in you what then X BXB like maybe and directionally been? comparison sold purposes,

Pat Roney

that. terms in mentioned we earlier We backup. that believe that pull I of

Terry Wheatley

didn't We to talk margin. gross

Pat Roney

margin operations, a bottling more which about the talk of beside our then margin. group shipment that bit the lower is did the put in XX% We were Yes, we focused margin. that delayed things there on little

dollar So, margin. we overall would margin and had have more

Daniel Biolsi

that, that And for then, glass? Is short or within you how one label only certain business be that business private the bottle a short? to sort of did that that affected of type the of you're type it choose

Pat Roney

It cycle was that what was we associated a certain type the in. with of bottles, were timing and the

Operator

with from question is next Feldman Telsey Our Advisory. Joe

Sarang Vora

some following up question Joe as on is improvement in gross you well. highlighted, labor year-over-year year, all class it your in a up down. XX%, and EBITDA Sarang know margin, range? strong Feldman. can the In outlook, been, I gross quick north stood last Hi, Vora I as showing the as has very that the is color of a share this gross it around outlook on for margin and 'XX. for changes With a little your likes bit you well had these XXXX? margin Like,

'XX? the to you about curious just think So margin for trajectory gross know how

Pat Roney

it's the with really I any lines and gross efficiencies as not increases been new from associated items work operations the who almost have in for two, our to our from warehousing price will impacted Yes, those issues years. the help new are just margin the efficiencies that. that glass bottling trajectory mean, two to continue are or our going with improve, But

of our EBITDA So, it's these but fully all things, numbers. margin margin our a as gross hit year for targets combination of to the as we well expect

Sarang Vora

And acquisitions Vinesse. you mean, the completed I year, Kunde, CSC, have one follow-up the you on too. past in completed I

side? or your did expectation, the there, past are Any any they in, you How expectations? can on your performing major compared help CSC past changes? a over like, Can more. are one Kunde you us requisitions? how your tracking, any cost like the How understand exceeding how tracking probably two compared to they you And tracking you are are the on that quarters have changes are color is to you like, acquisition? provide You they expectation,

Pat Roney

against [Kunde] expectations. very doing well has our been So, very,

for course, XX of years. managed winery XX or that we've Now,

it our we had of was know And quarters So, fairly expectations. operating that. And it's within we've certainly on a it well. couple

started we've good had looking for is opportunities in for And of and a us. but so companies just now it getting lot that transition like just growth months has still three many for

Sarang Vora

one And question. final

you wholesale expanding volumes the market like highlighted case Is new curious know. side, that On Just or, higher to you? well internationally. that for as

Pat Roney

upon is some want to pandemic and Terry, related It just you timing changes. that? expand

Terry Wheatley

markets down. China. of That shut ship opening would there. into really up. I back back just We've Canada's had was up. back opening We're those The able or down Yes, back big LCBO shipments couple are slowed to a say going

say wouldn't I just bounce those So, say its up. business. I new businesses we're would its business. seeing back returning

Sarang Vora

Thank That's you much. great. so

Operator

the and of reached closing I now the and will session, We end to remarks. Roney question Pat Mr. have the answer over call turn for

Pat Roney

a your making you thank producer and your call our business leading of you And everybody for we the taking our marketing's be rest that our time we're our of Thank differentiated I to just wines fine day grow thank the think today. enjoy quality progress very excellent to like time much. omni be continue today. strategy and for with on organization. to Great, to through

Operator

your lines concludes you and your you This this time. disconnect today's for at may Thank participation. conference

Vintage Wine Estates (VWESQ) 16 Nov 212022 Q1 Earnings call transcript