SOUTH AFRICA: Direct wine marketer net profits exceed expectations

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The Wine-of-the-Month Club, a Cape Town based direct wine marketing company increased its net profits by 75% to R2.3m and anticipates another 60% escalation in the current year.

Colin Collard, MD said the turnover of R46m for the year ended in February, had surpassed management#;s expectations for a second year in a row.

He attributed this success to a steady growth in members, now standing at 23,000 regulars, and a continued improvement in efficiencies.

The upgrading of the company#;s IT systems two years ago, including the installation of an Oracle database and sophisticated customer relationships marketing solutions (CRM) was now generating benefits. Through proper utilisation of its database and CRM has provided better profiling of its members, allowing the company to sell to the right people at the right time, said Collard.

Wine-of-the-Month Club was now gearing itself to auctioning wine online. Its website was being re-designed to make it more attractive and user friendly.

Collard said the company had not yet started pushing web-based wine sales. These only accounted for less than 5% of sales, but he expected this to grow steadily in the next three to five years and had not even included them in projections for the next financial year.

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