Virgin Wines targets £100m revenue with new growth strategy

Virgin Wines UK has unveiled a new growth strategy aimed at driving its annual revenue to £100m by 2030, with an EBITDA margin of 7%.

The strategy, which was announced alongside the wine specialist’s interim results, outlines key areas of focus including customer acquisition, commercial partnerships, and a significant investment in technology.

Despite a challenging retail landscape, Virgin Wines posted a 6.7% increase in revenue over the critical six-week Christmas trading period, with a 9% boost in December.

This performance comes as the company continues to build on its strong customer base, growing new customer acquisition by 29% in the first half of fiscal 2025.

CEO Jay Wright said: “Our strategy of acquiring high-quality customers at an industry-leading low cost per recruit, while maximising the quality and value of our wines through our unique open-source buying model, continues to position us well to navigate market headwinds.”

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Looking ahead, the business plans to accelerate growth through four key pillars: expanding its customer base, enhancing commercial partnerships, investing in new technology such as a mobile app, and scaling its Warehouse Wines brand. The latter has already made significant strides, ending the first half of 2025 with 17,600 customers and £1m in revenue.

Commercial partnerships have been a strong growth driver, with new collaborations in the pipeline. Virgin Wines is expanding its relationship with Moonpig and has entered into a new strategic partnership with Ocado, which it said has shown positive early results since launching in October.

Wright continued: “Virgin Wines has a unique and differentiated low-cost business model, a loyal and active customer base, and a highly experienced team that has consistently delivered industry-leading results. We are confident that the Company will execute the new Growth Plan announced today and deliver increased value for shareholders.”

The company remains focused on expanding its market share, with the ultimate goal of achieving £100 million in revenue at a 7% EBITDA margin over the next five years.

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