Yevgeny Chichvarkin lost another £2 million in the wine business

Due to the decrease in wine sales, Hedonism Drinks is trying to increase sales of other alcoholic beverages.
Origin source
Last week it became known that the former owner of "Euroset" Evgeny Chichvarkin after the failure to obtain the post of Minister of Economy of Ukraine was invited to head the oil company "Ukrnafta" (results of the contest will announce the 22 July). Chichvarkin publicly enthusiastic about this, and one of the possible reasons for this - the losses of its new London retail business, which invested more than $ 40 million.

According to the report of the London company Hedonism Drinks, which acquainted "News", for which ended on July 31, 2014 fiscal year (report submitted to the British commercial register this spring, more recent data are not available) the company recorded a net loss of £ 1.97 million, or $ 3.3 million (at the end of the reporting period, the exchange rate). However, the store Hedonism Wines managed to reduce losses compared to the previous reporting period -. To £ 375 thousand in general, since the opening of the accumulated net loss of the company amounted to £ 5,7 million (about US $ 9 million). of revenue in the report does not provide data.

Hedonism Wines area of ​​700 square meters. m opened in the prestigious district of Mayfair in the autumn of 2012, in the same building AVTOSwomb Porsche. Originally it was planned that the average price of a bottle there will be £ 200, but then Chichvarkin persuaded to sell wine at £ 10. The most expensive bottle of wine worth £ 120 thousand, among other drinks the most expensive -. Whiskey for £ 30 thousand.

Chichvarkin continues to increase its investment in the company. According to the latest finotchetu, the total value of tangible assets (equipment for storing wine) increased from £ 6.15 million to £ 6.59 million of alcohol stocks increased from £ 12.4 million to £ 14.4 million and the balance of a bank account and in hand rose from £ 644 thousand to £ 1,4 million -.. more total £ 3 million During the 2013-2014 fiscal year and increased the company's debts to creditors - from £ 21.9 million to £ 26.8 million, or has about $ 40 million this is the minimum level of investment committed Hedonism: the company previously stressed that its debts - a commitment to investors.. It may be noted that Chichvarkin and Timur Artemyev his partner sold the "Euroset" (owned by equally) in 2008 for $ 350 million - and the current financial condition of Chichvarkin is difficult to assess, as the prospects for the Ukrainian management: for neofitsialnym data, "Ukrnafta", Igor Kolomoisky headed by Briton Mark Rollins. It is known that the current annual fee of the current Chairman of the Board "Ukrnafta" Peter Vanhecke - $ 2 million.

Probably because of the need for personal manual override their new retail business Chichvarkin April 2015 appointed himself director of the company, however, was not fired earlier hired Tatiana Fokina - and now at Hedonism Drinks two directors. In the summer of 2014 she told "Izvestia" that Hedonism Drinks will be released on profitability in the 2015-2016 fiscal year; comments to this article give it failed. According to sources in the Russian alcohol industry, Chichvarkin - is not the only shareholder Hedonism Drinks (shareholder of this company - Channel Trustees Ltd of the Caribbean nation of St. Kitts and Nevis). Timur Artemyev from 2010 to 2013 headed the Hedonism Drinks, and it may well be its co-founder.

The head of the British consulting firm Retail Vision John Ibbotson believes that for the 2013-2014 fiscal year Hedonism Drinks increased its sales, according to the cash balances on hand and in bank. Overall, in 2014 the sale of wine in Englandand the EU decreased by 5-7%, and Hedonism, is likely to reduce its losses and increased the share of cash due to the increase in sales is not wine products, said Manager for Commercial Affairs Trade Association of wine and spirits in England, David Richardson.

- Over the past 2 years has increased the range of Hedonism Wines wine is not alcohol - confirms Marcus Patten, manager Gerry Store Sales's Wines and Spirit, who is in the neighboring district of Mayfair.

The strategy of increasing the proportion of wine of alcoholic beverages do not help the company reverse the loss, agrees to Ibbotson.

- More revenue from the sale of wine, on the basis of statements, the company does not appear clearly, but it reduced costs. Perhaps this was due to the appearance of regular customers - said the source. - Now, because of the relatively low incomes in sales of premium and reduce and so narrow market, many shops, especially in the north of England, are forced to reduce or close range, therefore, the position of Mr Chichvarkin I consider relatively successful.

Sununits for the rest of boutiques, Hedonism Wines change strategy, also said Richardson.

- But Russian buyers no one cheated on their tastes store will continue to be guided. Now the Russian, in some areas of London is becoming more so with the minimal set of customers the company will have no problems, - said the source. In an interview Chichvarkin estimated share of Russian customers in the region of 10%.