In December, L3T suggested that
The jump in price and bullish opinion is easily justified. Frankly, based on WBEV revenue growth, the stock should have stayed closer to its
That's a wise decision. Remember that WBEV delivered an impressive across-the-board Q3, announced a significant expansion in its wholesale markets, and provided guidance suggesting they are better positioned than ever to score record-setting revenues in Q4 and 2022. Those numbers, or perhaps just an interim glimpse, could come any day.
That's not all. Investors may get a status update on the potential for WBEV to add at least three new labels to its core wine brands, a move that could strengthen a revenue-generating tailwind that delivered more than 106% growth in its wholesale segment. If brands get added sooner than later, they will contribute to the
Frankly, after completing a
Meet The Millennials
It's important to keep in mind that WBEV's triple-digit-percentage growth in its wholesale business wasn't by happenstance; they earned it. Moreover, WBEV continues to meet unprecedented consumer demand for its growing arsenal of wine brands, and with a capital war chest to maximize production capacity, the impressive growth may become habitual. In addition, as one of the fastest-growing at-scale wineries in
Better yet, the opportunities in play are both near and long-term, making the WBEV value proposition more than attractive; it's compelling. It's also timely, with WBEV accelerating its penetration into an organics market growing at an estimated 11.6% per year. And as consumers' preferences shift toward healthier, naturally-produced chemical-free products at a faster pace than ever, WBEV is indeed in the right markets at the right time. Not only that, they are focused on the right customer.
There, WBEV is doing more than meeting a surge in demand; it's targeting the consumers wanting it the most- millennials. That's based on a Wine Intelligence Report published in March indicating that organic wine was the highest opportunity type of wine among younger consumers. And with WBEV's direct-to-consumer ("DTC") customer base comprised of 76% millennials, its omnichannel sales model provides an enormous conduit to reach that group on the retail side as well. That's an important distinction between WBEV and its competitors, and it's also an advantage.
Omnichannel Sales Model Expands Reach
Moreover, that advantage is strengthened by WBEV acquiring assets from Natural Merchants, which took
Actually, that's already happening.
Guidance for Q4 and 2022 is bullish, with WBEV intent to drive growth in its organic portfolio across DTC and wholesale channels. And by scaling supplier relationships and enhancing its brand portfolio with its organic Prosecco, an orange wine, and non-alcoholic wine, increases across multiple sales channels may come faster than expected.
Remember, too, that the robust guidance for 2022 added to an impressive Q3, which gives investors plenty of reasons to take advantage of share prices that, despite its 55% gains, appear to undervalue WBEV's assets, sales, and guidance appreciably. Indeed, there's a lot to like.
Revenues Spike To
Foremost, total net revenues in the quarter jumped to
Also impressive is that WBEV's wholesale revenues soared by 106.9% to
The excellent news is that guidance calls for more of the same.
That bullish sentiment is justified, especially with WBEV inking new retailer deals that expand the number of locations where customers can find its products. Those new relationships, by the way, combined with improving performance at their existing retail partnerships. Thus, that sales channel is doing more than performing at a high level; it's getting stronger. And, as noted, recent placements in several of the highest volume retailers in the country, including
Keep in mind, too; those five retailers are a tiny representation of its client base.
Sales growth is proof.
Adding three is a big deal, especially when targeting millions of new and existing clients. But more importantly, because
Toasting In 2022
Perhaps the best part of the WBEV investment proposition is that while 2021 has been excellent, 2022 could be transformative. WBEV guidance certainly indicates that could be the case. In addition, the metrics support the bullish proposition, with
Then, factor in WBEV's completing its
One more thing, which investors should embrace.
Hence, while 2021 was an excellent year, 2022 is set to be an even better one. And coverage from leading analysts is indeed developing a bullish tone right out of the gate. In all likelihood, they see what others should- WBEV is a company in motion executing its strategy to penetrate multiple markets with its highly-rated products. Thus, toasting in advance of meeting those expectations and its results may be a wise consideration.
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