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A Taste of Issue: 8 / Sunday 14 January, 2018   The Directors Report I made a conscious decision not to send any communication to you all during the first few weeks of January as it is difficult enough getting back into the working groove following the Christmas break without being bombarded by endless Happy New Year messages from all and sundry. Nonetheless, my New Year wishes are sincere and I do hope this year will be filled with peace, a good work-life balance, good health and of course, some cracking bottles of wine... January is the time of year for reflection and planning, which I thought I would share. Wine is physical; it is something special, a creation to be enjoyed rather than be pushed from one corner of the globe to another which I have spent far too many years enduring. I am happy for wine to take flight as many of our wines travel the globe weekly from our headquarters in Kent however, pushing high value Bordeaux invoices from one client to another whilst the stock sat rooted to the spot lost its shine for me. This led to the creation of The Vinorium, which started life as a humble shop, albeit and bias aside, one of the smartest ones I have seen (well, I did design it myself!).  I made some wonderful friends and our shared enthusiasm certainly relit my spark which had been smouldering for years. The Vinorium has taken centre stage over the past four years and it has not been an easy journey – far from it. I am, by my very nature, ambitious (perhaps overly) however, I believe this is a positive character trait as inevitable knockbacks simply force me to come back fighting. Establishing a retail company is difficult and it has taken an extraordinary effort with unavoidable causalities. Fast forward four years and my team and I have finally reached a level whereby we can sit back, reflect and acknowledge we have produced a very special wine company. This week my accounts for the year ended 31 October 2017 have been signed off and submitted to Companies House. The content is pleasing and something my team and I are very proud to share as many of you have supported our success. My Company maintained its primary focus on the development of our retail division, The Vinorium with the key goals to be profitability and sustainability. Gross turnover increased by £2.783 million compared to 2016 reported figures with operating profits of £1,433,736. Our profit position after tax, which is the all important number stood at £1,145,969. *All figures exclude 2015 & 2016 Bordeaux En-Primeur sales which are reported at the time of being physically delivered. The Company’s focus was to continue its strong ecommerce position within the global wine market with online orders increasing by 68% compared to 2016 (*again, excluding online Bordeaux En-Primeur orders). Our stock position has also increased significantly to a closing balance of £1,549,500 (our cost value not sales value). Brexit has affected our business in both the positive and negative. The fall in value of Sterling has led to a significant increase in our international business with sales for the year ended 31 October 2017 outweighing domestic sales. However, our domestic, private customer base grows by the day with 50% of all website orders coming via new customer acquisitions. Conversely, our purchase cost has led to some wines being delisted from our portfolio with brands such as Burn Cottage proving too rich. The company has created a profitable and engaging platform to sell wines globally to both private and trade clients. The Company continues to grow at a healthy and sustainable rate, which is highlighted in our first ten weeks of trading during our new financial year. Sales have increased by 528% compared to last year however, we do expect this to level-out towards the second and third quarter. The Company has sufficient stocks and cash reserves which ensure no need for any external finance and we operate without the need of an overdraft facility or any loans. Top 10 Power List by Producer (Data range 1st January to 31 December 2017) £2.351 million Sales Value 91,875 bottles sold 1st. Two Hands Sales by Country (Data range 1st January to 31 December 2017)  Power List by Grape Variety (Data range 1st January to 31 December 2017)  .png) January Sale  January is also the time of year when many wine merchants offer sales incentives, which is a difficult task for The Vinorium as the vast majority of our wine selection are offered at the ‘best’ prices in the advertised world market. That said; I spent some of my Christmas break examining each and every under bond case of Australian wine that we hold in stock (some 13,500+ which diminishes by the day). Fast forward a few days, a substantial amount of pricing detail and I have produced an offering which I am confident will please many. Granted, and by the time you have read my communiqué, one or two wine merchants may have dropped their margins to compete with our prices however, I am 99% sure you are receiving the very, very best prices in the world market. I am mindful that some of you are unsure of world pricing and how we stack-up with the rest, which is something we cannot add to each and every wine. Historically, we have shown world competitor prices during the course of various offers and we will continue to do so however, this exercise is a tad large to follow suit. Instead, you will have to rely on our price promise, perhaps a little of your own research or and if all else fails, * Please remember our global trade clients have received this offer too... A Sales Snapshot...  1. 95 R. Parker Point 2004 Clarendon Hills Moritz Syrah @ £169.95 IB per case of 6 • Our nearest UK competitor: Fine + Rare @ £363.00  2. 2006 Hobbs of Barossa Ranges Shiraz Viognier @ £128.95 IB per case of 6 • Our nearest UK competitor: Fine + Rare @ £258.00  3. 2004 Shirvington Cabernet Sauvignon • Our nearest UK & World competitor: Cru Hong Kong @ £169.50  4. 2007 Spinifex Esprit Grenache / Shiraz @ £65.50 IB per case of 12 Our nearest UK competitor: Fine + Rare @ £163.00  5. 2003 Torbreck The Steading @ £102.00 IB per case of 6 Our nearest UK competitor: Bordeaux Vintners @ £220.00  6. 2004 Kaesler The Bogan @ £125.00 IB per case of 6 Our nearest UK competitor: Fine + Rare @ £160.00 .png) The Year Ahead A preview of what to expect over the coming three to four months  New and great wines from Our key focus for the coming year is to establish exclusivities with leading wineries in Australia, New Zealand and USA. We are already in talks with some amazing producers with samples physically  2017 Bordeaux Stuart’s 17th campaign and the company’s 12th We promise to provide our most  2015 DuMOL The 2014’s are stunning however, some of the  2017 Devotus En-Primeur Amazing Pinot Noir from our exclusive This year we will be offering their highly Finally, I must express my sincere gratitude to you all. Your continued support is special as is each and every order, which we receive with the same enthusiasm and appreciation. My very best wishes for the year ahead, Stu |
