Fresh Vine Wine, Inc. a producer of lower carb, lower sugar, and lower calorie premium wines in the United States, reports revenue soarted to $1,019,377 in the second quarter from $384,219 a year earlier. The company's net loss narrowed to $4.6 million from $5.2 million.
The company attributed the 165% increase in net sales to "our increasing presence in the wholesale market and an increase in wine club memberships." Additionally, it said, it continues to expand its varietal offerings, and as it does, it also increases sales.
Separately, Fresh Vine Wine said it entered into distribution agreements with four of the nation’s leading retailers, with Fresh Vine Wine’s varietals hitting the shelves as part of their respective Fall resets. Separately, the company today filed with the SEC its 10Q for the second quarter and period ended June 30, 2022.
Rick Nechio, interim CEO, said, “The infrastructure is being built for scalability, allowing the company to accelerate growth through virtually every distribution channel, with our recent announcements with big box retail grocery the most recent. This new channel complements our existing direct-to-consumer (DTC), online, on-premise, and convenience channels. Our newly announced upgraded DTC website, where orders can be completed in as little as three clicks, along with our new shipping rates, wine club member perks, and monthly subscription program resulted in a nearly 900% improvement in sales conversions. Now Fresh Vine can execute a successful DTC strategy to increase revenue, awareness, and further develop its brand using profitable marketing. In addition, we have already produced and bottled the inventory and reserved the production capacity to meet the growing demand for our premium products. Better For You is the fastest growing food & beverage category. And Fresh Vine Wine has been increasingly recognized as the category leader.
“Through June 30, 2022, we invested in building the foundation to support rapid growth. With the addition of big box retail grocery, we now have a formidable national distribution network that is the envy of our industry. We have relationships with four of the five largest beverage distributors in the United States, and we have produced inventory of our award-winning wines to quickly capture growing demand.
"Now, with our infrastructure firmly in place, we are in position to drive revenue in the second half of the year, particularly in the critical holiday season,” continued Nechio. “So, while we have absorbed the costs of this investment, we believe we are entering a period of rapid revenue generation. To make sure we are sufficiently resourced, we have also taken steps to preserve cash and achieve positive cash flow.”