Magazine article Management Today

Business Is Great: Vin Extraordinaire - Naked Wines

Magazine article Management Today

Business Is Great: Vin Extraordinaire - Naked Wines

Article excerpt

How Naked Wines used crowd-funded to support quality independent winemakers

In order to invest in fine wines, the company needed longer-term funding and turned to its customers.

Its Fine Wine bond was offered to customers in lots of pounds 500 to pounds 10,000, offering a gross annual return of 7% in cash interest (paid yearly) or 10% in wine credits (paid quarterly) - over a fixed three-year term. Bondholders also get preferential access to the wines funded by the bond.

The company hoped to raise at least pounds 1m. In four weeks, its customers had offered pounds 6.2m.

'It's been a revelation for us,' says managing director Eamon FitzGerald. 'We've been able to attract high-calibre winemakers like Daryl Groom, who used to make Penfolds Grange, and Stefano di Blasi, who made Tignanello and Solaia, two of Italy's most famous wines.

'Great wine needs three things - grapes, talent and time. We had the first two, but didn't have the funding to give some of our wines the extra time they needed. …

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