Chichvarkin lost more than $6 million in wine

The transition from mass retail to the premium sector turned out to be hard for the famous entrepreneur. The experts confirm that in the low-price wine segment in the UK the situation is better than in the boutiques.
Origin source
Company Hedonism Drinks former owner "Euroset" Evgeny Chichvarkin, who in 2008 left Russia in 2010 and engaged in the UK trade wines, increased its net loss. How do I find "News", since the opening of Hedonism Wines store (the project was prepared two years) accumulated net loss was already £ 3.8 million, or about $ 6.3 million. The British experts do not see from a startup, which invested more than £ 20 million and bright prospects.

According finotchetu Hedonism Drinks Limited for the fiscal year (there are at the disposal of "Izvestia"), which ended July 31, 2013 (report filed by recently, more recent data are not available), net losses increased by 60% - from £ 1.5 million to £ 2 , 3 million, about $ 3.9 million. of sales data in the document, which is available to editors, not given. CEO Hedonism Wines Tatiana Fokina told "Izvestia" that for the fiscal year, which ended July 31, 2014, net loss decreased and store profitability project will be released in 2015-2016.

Chichvarkin opened a luxury store Hedonism Wines with appropriate design for 700 sq. m in one of the most prestigious areas of London (Meyfe) In autumn 2012, before there was a preparation for two years. Chichvarkin was originally planned that the average price of a bottle in his shop of £ 200 pounds, but then he was persuaded to sell wine at the cost of £ 10 pounds. Store assortment includes more than 7 thousand. wines, the most expensive bottle costs £ 120 thousand.

According finotchetu, tangible assets for the year until July 31, 2013, increased from £ 5,5 million and £ 6,2 million - apparently, the company bought the equipment for wine storage. Hedonism Drinks Inventories increased from £ 9.3 million to £ 12.4 million: the Fokine explained that we are talking about expanding the range of Hedonism Wines 1.5 thousand items.. Disclose data on revenue and discuss the reasons for the growth of net losses, companion refused.

Balance of cash on hand and in bank Hedonism Drinks during the reporting period decreased from 1.6 million pounds nearly tripled - to 644 thousand pounds.. IFC Markets company analyst Dmitry Lukashov, reading the report, noted that the company "consistently unprofitable," and the fact that during the reporting period Hedonism Drinks debt increased significantly - from £ 18 million to £ 22.3 Mill.

- We have no debtthe banks, it is our duty - it's obligations to investors. the company's debt increase is due to greater financial investments of investors - said Tatiana Fokina. - However, we expect that the company will become profitable, if not next year, not later than one year.

According to some reports, Chichvarkin has invested over £ 10 million in a wine shop, but he denies this information. Sources in the Russian alcohol industry say Chichvarkin - is not the only shareholder Hedonism Drinks (shareholder of this company - Channel Trustees Ltd of the Caribbean nation of St. Kitts and Nevis). Fokina disclose the full composition of the shareholders did not. Chichvarkin Partner "Euroset" Timur Artemyev from 2010 to 2013 headed the Hedonism Drinks, and it may well be a co-founder. It is believed that "Euroset" they owned on an equal rights and a new project they could also invest equally.

According to analyst John Ibbotson, head of Retail Vision, Hedonism Wines British consulting firm will be difficult so sharply to get a plus and build momentum.

- Expensive wine market of the UK is too narrow,- Says Ibbotson. - It is not the big players, and no, in fact, very successful companies - many working with a minimum profit. According to the company report, they do not have large incomes, this suggests that the products bought only wealthy people, most likely Russian. But the store is closed - they will keep it afloat.

This year Chichvarkin in an interview assessed the share of Russian customers in the region of 10%. With regard to the work shop, in the next couple of years for the existence of the project concerned is not necessary. For the "Euroset" Chichvarkin and Artemiev received from Alexander Mamut $ 350 million, and, based on the British currency six years ago Chichvarkin could be around £ 100 million.

British experts on alcoholic riteylu noted that reports on the company's difficult situation could affect much on the wine market in the country and specialization Hedonism Wines on the elite wines, which by definition are sold quantitatively worse.

- Hedonism Wines known in the wine market in London and the UK as a whole as an independent and growing company, unlike mostconsistency of wine supermarkets, - says manager for Commercial Affairs Trade Association Wine and Spirits David Richardson. - I can say that the high-end wine market in England is very volatile and Hedonism Wines certainly feels it. Sales at it, as most of these boutiques are not stable, which may explain the high costs of the company - she is looking for new brands and spending on them is quite large sums.

Chichvarkin project Competitors also believe that the increase in the loss Hedonism Drinks can be caused by poor selection of wine.

- They have a fairly large selection of rare wines that can not be found in other stores, and one can not say that it was good, because such brands sold poorly, - says Marcus Patten, manager Gerry Store Sales's Wines and Spirit, located in the neighboring Mayfair area. - On the other hand, people in this store acquainted with new brands. The fact that such shops exist, in general, is beneficial to the industry, but I have to do business in the premium segment did not, because it does not happen more revenue.