Off-Piste Wines, the Cheltenham-based wine supplier and brand owner, has reported a 5.9% drop in turnover for the financial year ending January 2020. Company filings at Companies House show that revenue fell by £2.3 million, from nearly £40 million in 2019 to £37.3 million, reflecting the impact of Brexit-driven currency fluctuations, challenging trading conditions, and global wine shortages.

The dip in performance contrasts sharply with previous years, which saw Off-Piste grow by 14% and 17%, despite operating in a highly competitive market. The company cited the post-Brexit political climate and the weakened pound as key pressures on margins. The situation was compounded by what it described as “the worst global harvest in a generation,” with demand outstripping supply for the first time in recent memory.

Profits fall amid increased investment

Off-Piste’s operating profit dropped by a third to £1.8 million, down from £2.7 million the year before. Despite the decline, the company maintained that this reduction was partly due to planned investments in both its leadership team and its flagship Most Wanted brand.

Following a significant £8 million investment from BGF (Business Growth Fund) in December 2019, Off-Piste embarked on a strategy to expand its international business, aiming to triple exports over the next four years. The investment also supported senior hires and product development intended to build the foundation for a return to strong growth in FY2021.

As part of the BGF deal, former Diageo CMO Andy Fennell and BGF investor Alex Garfitt joined the board. The company also brought in former Waitrose wine buyer Maria Elener as head of European sourcing and supply.

UK remains key market but export ambitions grow

Despite international expansion goals, the UK remains Off-Piste’s largest market, accounting for 92% of total sales in 2019. Sales to Europe rose slightly, contributing 7.5% of revenue (up 0.5 percentage points from the previous year), with growth of £155,000. However, sales to the rest of the world saw a decline of £235,000, accounting for just 0.5% of the business.

The company remains optimistic about growing its global footprint, with the goal of having international sales represent 20% of total revenue by 2024.

Navigating COVID-19 with resilience

Although the reporting period ended before the COVID-19 pandemic fully took hold, Off-Piste noted its response to the unfolding crisis in its filing. The company acted quickly and proactively, managing to continue operations without requiring additional bank funding or government support.

Looking ahead to the remainder of 2020 and into 2021, the company stated that while uncertainty remains, it is trading in line with expectations. Off-Piste continues to push forward with recruitment plans and new product development, underscoring its long-term growth ambitions despite short-term challenges.

With a strengthened team, expanded brand investment, and a strategy focused on international growth, Off-Piste Wines is preparing to rebound from a difficult trading year and position itself for sustained success in a changing global wine market.