Gusbourne plays it safe with new leadership
There is method in the winemaker’s decision that the best candidate for CEO is already working at the firm
AIM-listed Ashford winemaker Gusbourne announces its new CEO-designate and reshuffles its top team. In this edition, we explore what the appointment means, and the areas to look out for at one of the UK’s pioneers in premium sparkling wine. If this newsletter was forwarded to you, please consider subscribing so you don’t miss a future edition:
This article is for informational purposes only and not investment advice. If you have any doubts as to the merits of an investment, you should always seek advice from an independent financial adviser.
Gusbourne squares up to the future with new CEO
Kent’s premium winemaker promotes Marketing Director Jonathan White to CEO, and asserts new leadership team. Can they deliver?
In a business career of nearly 20 years, Jonathan White has never not worked in marketing. He started his career at motoring giant BMW in their market research team during a placement year while studying in Bournemouth. Since then, his corporate life has taken him to Carnival UK and GolfBreaks.com before he joined the wine industry in 2008 and worked for upmarket merchants Berry Bros and then Armit Wines. At all these companies, he took roles in the marketing teams, rising up the ranks from executive to director level.
White has now been at Gusbourne nearly five years, leading the branding and international expansion of the premium winemaker. Soon, after regulatory approvals, he will step into the role of Chief Executive after a volatile 12 months for the Appledore winemaker.
The winemaker’s share price ended 2023 3.5% percent up on the previous year. Its UK wine sales increased by 24% year-on-year to £2.3m in H1’23, however, international sales declined by 7% in the same period. Last summer, the CEO Charlie Holland walked out of the AIM-listed firm unexpectedly in September, leaving Non-Executive Director Mike Paul to steady the ship as interim CEO during the search period for Holland’s replacement. Despite this, the winemaker described its 2023 harvest as one of its strongest, predicting its "biggest yield to date" in 2023. Perhaps, the grape grower needed a bit of good weather on its side.
Onlookers might view White as the ‘continuity candidate’ who is a safe bet for a firm which hasn’t had a CEO since last summer. However, this is too simplistic. White’s ‘experience’ at the firm and marketing-mindset might just be what Gusbourne needs to take the wine producer to the next level. Indeed, outgoing leader Paul praised White, noting that he brings an ‘in-depth knowledge and understanding of the business’, a quality an outsider wouldn’t be able to bring to the firm.
Alongside other AIM-listed wine producers in Kent like Chapel Down Group, Appledore’s Gusbourne has high ambitions for the years ahead. It is seeking to penetrate international markets, improve margins by investing in its Direct-to-Consumer offering, and grow its revenue at the premium end of the English sparking wine market. An important point to note is that White has been leading much of this work already, and will continue to take it forward in his new role at the helm.
The promotion has also created room for a wider reshuffle of Gusbourne’s leadership team as the firm looks towards 2024. Simon Bradbury will be appointed as Chief Commercial Officer, previously being Global Sales Director. Katharine Berry, Group CFO, will take on responsibility for the vineyard and wine operations alongside her existing remit covering Finance, HR and IT. Mike Paul will resume his role as non-executive director.
There is strong upside to these candidate choices with internal promotions able to get going from day 1, and steer the business with existing knowledge. No messing around, it means they can get straight to work without waiting to clear the decks from previous roles. For investors, continuity will be welcome after years of significant revenue growth - net revenue was up by 49% in FY2022.
However, for a firm with an ambitious three-pillared growth strategy, failure to deliver could leave shareholders demanding outsider support. The firm reported a pre-tax loss of £1mn for its half-year results with net-debt growing 77% to £15.2mn in June 2023. It won’t all be plain sailing.
Looking through the other end of the telescope, it is easy to see White capitalising on Gusbourne’s existing strengths and further positioning the business as the go-to, premium choice for english sparkling wine. One can equally see a future where a business that markets its products at £30 and above during a cost-of-living crunch finds trouble.
On this, we might find out sooner rather than later. Set your watches early as Gusbourne is expected to update investors and financial markets before the end of January with a trading update for 2023. We will soon see whether White and his promoted colleagues face an uphill challenge in 2024 or have the right foundations in place to take the business to new levels. One hopes, whatever the results, they will know where to get started.
Jonathan White CV (Linkedin)
Degree: Business Studies, University of Bournemouth
First job: Market Research Analyst placement student, BMW
Most recent role: Marketing Director, Gusbourne
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🥂 Chapel Down Group, England’s largest winemaker, announced a trading update for 2023 this week revealing that Gross Sales Revenue was up 13% year-on-year. The note to financial markets further shows that average realised sales price (ASP) grew 12% during the year. CEO Andrew Carter noted that the Group has continued to deliver profitable growth and expand its brand presence both domestically and internationally.
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This week, you might be receiving a boost to your take home salary as Jeremy Hunt’s national insurance cut finally kicks in. However, for many across the County, this boost could be short-lived with rail commuters impacted by an impending 4.9% rise in regulated fare prices which is set to come into force on the 3rd March. This means if you were commuting three days a week to London from Tunbridge Wells, required a travel card but were not able to access a railcard discount, your fares would rise by £313 per year. This equates to roughly the same yearly post-tax amount that higher tax band commuters will receive from the Government this week. For commuters, it is understandable that many feel the Chancellor is giving with one hand, while the Transport Minister takes with the other. Last week, the Department of Transport announced its latest Great British Rail Sale to get more people using the rail network in the UK. When commuting costs can often be upwards of £4,000 per year for those across Kent and Medway, perhaps, transport policymakers and planners should spend more time focusing on reducing prices for those using the network already rather than gimmicks.
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