The Wine Society annual sales results: A strong year despite challenges

By James Bayley

Published: 19 June, 2024

The Wine Society has reported a successful financial year, with annual sales reaching £149.1m, an increase from £147.7m the previous year. The company also saw a significant profit increase, up 12% to £1.8m from £1.6m in 2022/23. This growth comes after a particularly strong performance during the Christmas season and a robust second half of the year.

Entering the new financial year, The Wine Society’s cash balance has risen by £3.8m, now standing at £15.4m compared to £11.6m in the previous year. This financial health is attributed to the retailer’s decision to hold prices steady despite the duty hikes last August. This strategy, enabled by The Wine Society’s unique status as a 100% member-owned cooperative, has allowed the company to maintain competitive pricing on its extensive range of over 1,600 wines.

Steve Finlan (pictured), The Wine Society’s CEO, highlighted the importance of this pricing strategy: “Holding prices is a huge additional cost for any business to take on, but we wanted to show members a vision of how our mutual model can change the dynamics of the industry – currently our like for like basket of wines is 12% cheaper than our closest two competitors.” Finlan stated.

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He also called on members to support this strategy by spending more of their wine budget with The Society. The response has been positive, with 30,000 more transactions in the past quarter compared to the same period last year.

The Wine Society has also embarked on a new strategy, beginning with the introduction of a new Enterprise Resource Planning (ERP) system. This significant project aims to modernise the company’s operations, replacing outdated systems and improving overall efficiency. The new strategy includes enhancing service propositions, expanding the range of delivery options and increasing the availability of sustainable and innovative wine selections.

Looking ahead, The Wine Society's plans to celebrate its 150th anniversary with exclusive wine ranges and special events, are actively underway. These preparations, which began in the second half of 2023/24, should further boost sales in the coming year.

The company continues to prioritise member satisfaction, maintaining high service standards through personalised support and an improved online shopping experience. The website now accounts for 85% of total sales, up from 70% five years ago, thanks to ongoing enhancements that make shopping easier and more enjoyable for members.

Despite the challenges posed by high wine inflation, The Wine Society remains committed to minimising price increases and providing exceptional value. The gross profit margin improved to 20.8% from 20.2% the previous year, reflecting favourable exchange rate movements and a strategic mix of wine sales. Administrative expenses grew by only 2.8%, demonstrating effective cost control.

Finlan concluded, “With wine inflation still very high, price increases are inevitable, but our commitment is to minimise these. We will continue to invest in pricing to provide our members with the highest quality wines at the best possible prices, always. We will only increase prices where the cost price from the supplier results in a retail margin that is unsustainable. Operating in this way will further increase the price gap between us and our competitors.”

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