Virgin Wines has cited rising costs coupled with low consumer spending for a hit on its profits. The digital winery now expects a pre-tax loss of £1.5 million, it had reached a profit of £1.6 million last year.

Macro-economic events, increased taxes and duties, the Iran conflict, alongside low consumer confidence and spending have negatively impacted the 25-year old brand.

As it looks to the future and potential growth, Virgin Wines stressed it is focusing on customer acquisition, expanding commercial partnerships and stadium supply channels. It also aims to grow its Warehouse Wines value proposition and new mobile app,  to drive market share gains and a medium-term recovery in profitability.

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Furthermore, Virgin Wines has signed a lease for a new warehouse in Preston, as it looks to consolidate fulfillment and cut transport costs. It plans to exit its Bolton site by February 2027. This latest investment includes £0.7 million in exceptional operating costs and £1.6 million in capex.

Virgin Wines CEO Jay Wright explained that this new lease would “streamline” operations and provide “significant synergies and economies of scale”.

“Our execution against the key pillars of our growth strategy is delivering encouraging progress, despite that growth now being slightly slower than our original plan due to external market pressures. We are evidencing that the strategy is working, and we remain focused on taking further market share and continuing to invest in our growth channels.

“We have an exceptionally loyal customer base who appreciate the outstanding quality and value of our exclusive wine portfolio and the exceptional levels of customer service we consistently deliver.”