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Gusbourne in growth as Lord Ashcroft explores shareholding sale

Gusbourne has demonstrated resilience in 2024, navigating macroeconomic challenges with a focus on direct-to-consumer (DTC) sales and premium positioning. Additionally, majority owner Lord Ashcroft continues to explore options for his shareholding, which could include a potential sale.

 

Navigating a tough trading environment

In a year where the UK hospitality sector continued to experience turbulence, Gusbourne reported a modest 1% increase in total net revenue, reaching approximately £7.1 million. This result follows a period of rapid growth (13% in 2023), tempered this year by a 9% decline in UK trade sales and a 3% drop in international sales. 

However, Gusbourne’s direct-to-consumer performance remains optimistic, climbing 19% to £2.4 million, now accounting for 34% of total revenue, particularly through online and cellar-door sales.

The latest data from WineGB suggests that 30% of UK wine sales are now driven through cellar doors and winery websites. With a more substantial proportion of English wine now being sold directly to consumers rather than through traditional trade channels, Gusbourne’s investment in The Nest, its cellar-door operation in Kent, and digital sales growth appear well-aligned with broader industry movements.

Shifting sales channels

Gusbourne’s 66% gross margin (compared to 68% in 2023) reflects the evolving dynamics of pricing and channel mix, with international and UK trade segments underperforming relative to prior years. The company’s decision to partner with Enotria & Coe, a well-established distributor, may help offset these pressures by expanding its footprint in the UK on-trade.

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Meanwhile, international sales saw a 3% decline, now accounting for 20% of total net revenue, as key export markets trimmed order sizes. However, new developments — such as the appointment of an Asia regional manager and a new market opening in Thailand — suggest a longer-term international growth strategy remains firmly in place.

Financial and strategic outlook

Gusbourne’s adjusted EBITDA loss remains at £700,000, a sign of disciplined cost control despite the challenges of a smaller-than-expected harvest. Net debt stands at £22.6 million, reflecting continued investment in growth while the company explores strategic options for Lord Ashcroft’s shareholding, including a potential sale.

Gusbourne’s performance is set against the backdrop of a UK wine industry experiencing record growth. With over 1,030 vineyards and 221 wineries, total UK wine sales in 2023 hit 8.8 million bottles, up 10% year-on-year and an astonishing 187% increase since 2018. The sector remains overwhelmingly dominated by sparkling wine (76%), an area where Gusbourne continues to thrive.

While the hospitality trade remains a challenging space, Gusbourne’s ability to maintain revenue growth — however modest — in such an environment demonstrates its resilience. With a robust DTC strategy, an expanding international footprint, and a commitment to premiumisation, Gusbourne remains well-positioned to navigate the shifting landscape of English wine.

As Jonathan White, Gusbourne’s CEO, aptly summarised: “Despite this backdrop, we have continued to see significant consumer demand for Gusbourne’s wines, serving more B2B and B2C customers than ever before, and all underpinned by careful ongoing investment in the brand and the unwavering commitment and dedication of our talented team.”

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