Vintage Wine Estates Enhances Direct-to-Consumer Platform with Acquisition of Vinesse, LLC

Adds a well-established leader in direct-to-consumer wine clubs with over 60,000 members to the DTC market channel

Offers significant cost synergies and new revenue opportunities

SANTA ROSA, Calif., Sept. 28, 2021 (GLOBE NEWSWIRE) — Vintage Wine Estates, Inc. (NASDAQ: VWE) (TSX: VWE.U) (TSX: VWE.WT.U) (“VWE” or the “Company”), one of the fastest growing wine producers in the U.S. with direct-to-customer platform, today announced it has acquired substantially all of the assets of Vinesse, LLC, a direct to consumer platform company specializing in wine clubs with over 60,000 members. Founded in 1993, Vinesse has developed a long-time following by offering interesting boutique wines to a broader audience and making wine accessible and easy to love.

Pat Roney, CEO of VWE, commented, “We are rapidly expanding our DTC capabilities and Vinesse is an excellent addition to the platform. Vinesse currently outsources virtually all of their operations. We believe we can create significant cost synergies by bringing wine making and distribution in house and marketing VWE’s brand portfolio through their channels. We also see significant potential opportunities for revenue expansion as we blend the talent of Vinesse’s traditional marketing skills with our digital capabilities, particularly through cross-selling into Vinesse’s channel and upselling our luxury brands to their club members.”

He continued, “We are acquiring the business for approximately 12x Vinesse’s current EBITDA and expect to lower that multiple to less than 5x over the first 12 months driven principally by cost synergies. As we continue to execute on our strategy, we expect that this will be the first of several acquisitions we intend to make during FY2022 that complements our planned organic growth.”

With approximately $20 million in revenue, Vinesse is 100% owned by Larry Dutra who is expected to remain with the operations to help continue to grow the business along with other Vinesse leadership. VWE is acquiring Vinesse for $14 million in cash with a $2.5 million earnout over a three-year period subject to meeting certain revenue and profitability conditions.

About Vintage Wine Estates, Inc.
Vintage Wine Estates is a family of wineries and wines whose mission is to produce the finest quality wines and provide incredible customer experiences with wineries throughout Napa, Sonoma, California’s Central Coast, Oregon and Washington State. Since its founding 20 years ago, the Company has grown to be the 15th largest wine producer in the U.S. selling more than two million nine-liter equivalent cases annually. To consistently drive growth, the Company curates, creates, stewards and markets its many brands and services to customers and end consumers via a balanced omni-channel strategy encompassing direct-to-consumer, wholesale and exclusive brand arrangements with national retailers. While VWE is diverse across price points and varietals with over 50 brands ranging from $10 to $150 at retail, its primary focus is on the fastest growing premium segment of the wine industry with the majority of brands selling in the $12 to $20 price range. The Company regularly posts updates and additional information at https://www.vintagewineestates.com/.

Forward-Looking Statements
Some of the statements contained in this press release are forward-looking statements within the meaning of U.S. securities law and forward-looking information within the meaning of applicable Canadian securities law (collectively, “forward-looking statements”). Forward-looking statements are all statements other than those of historical fact, and generally may be identified by the use of words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “model,” “outlook,” “plan,” “pro forma,” “project,” “seek,” “should,” “will,” “would” or other similar expressions that indicate future events or trends. These forward-looking statements include, but are not limited to, statements regarding the expected benefits and opportunities of the Vinesse acquisition. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of VWE’s management and are not guarantees of actual performance. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the control of VWE. Factors that could cause actual results to differ materially from the results expressed or implied by such forward-looking statements include, among others: our ability to realize the expected benefits of the Vinesse acquisition, including anticipated cost synergies and revenue expansion; and those factors discussed in documents of VWE filed with the U.S. Securities and Exchange Commission (“SEC”) or Canadian securities regulatory authorities. There may be additional risks that VWE does not presently know or that VWE currently believes are immaterial that could also cause actual results to differ from those expressed in or implied by these forward-looking statements. In addition, forward-looking statements reflect VWE’s expectations, plans or forecasts of future events and views as of the date of this press release. VWE undertakes no obligation to update or revise any forward-looking statements contained herein, except as may be required by law. Accordingly, undue reliance should not be placed upon these forward-looking statements.