Virgin Wines PLC was founded in 2000 and today is one of the UK’s largest direct-to-consumer wine retailers, selling more than 100 million bottles of wine annually, and winning multiple independent awards.
Established under Richard Branson’s Virgin banner, Virgin Wines became a subsidiary of Direct Wines in 2005. In 2008, Jay Wright, founder of Warehouse Wines, a start-up that was also set up in 2000 and later acquired by Direct Wines, became Managing Director of Virgin Wines. His arrival began a significant period of restructuring, which included merging the Warehouse Wines brand with that of Virgin Wines.
“I was asked to take over Virgin Wines, which had been loss-making for several years, and set out to restructure the business. This became an amalgamation of Virgin Wines and Warehouse Wines with our aim to put it on a profitable path,” Jay Wright recalls. Following a highly successful turnaround, the company changed ownership in 2013 under a management buyout. Further business growth culminated in 2021 when Virgin Wines was floated on the stock exchange.
“It’s been an incredible journey, from a start-up to an IPO,” says Wright, reflecting on his 24 years in the wine business. “From a personal perspective, it’s been great fun, I’ve really enjoyed every minute of it. But more importantly, I believe we’ve created an outstanding business that delivers high-quality wine at great value to over 180,000 active customers under three different subscription schemes.”
Virgin today works with an extensive network of trusted winemakers to blend a range of over 700 wines. The result is a range featuring exclusive and estate-sourced wines, crafted exactly to customer’s tastes.
The personal touch
Over the last decade, the company has grown to employ some 200 people spread across three locations – the headquarters in Norwich and two distribution centres in Preston and Bolton.
“Unlike supermarkets, we are not about selling big-name wines made in huge factories using mass production techniques. Instead, we sell boutique-quality wines produced by small independent winemakers who make their wine for love and not money. We believe in offering our customers exceptional value for money and our wine buyers constantly travel the globe to find the best wines possible,” says Wright.
He further explains that Virgin Wines reflects what different customers want from their retailer. “Some people want a case of wine arriving at their door every three months and find it very convenient, others want to be much more involved in the process. So, we have devised three different schemes to suit any taste and budget.”
The majority of Virgin Wines customers use the company’s flagship scheme called Wine Bank where for each £5 put into the account, a £1 bonus is instantly added, with the added benefit of free express delivery on all wine orders. Under the scheme, customers are practically creating a pot of money, with 20% interest, to spend on whatever wines they want, whenever they want.
For those who are less knowledgeable about wines, the company has a Discovery Club with a Head Wine Buyer that creates a case of 12 different craft wines which the customer receives every three months.
And for those who are not quite ready for one of the company’s clubs, Virgin has over 700 wines to choose from on a pay-as-you-go basis, sold in any way preferred by the customer, from 16 bottle cases to beautifully presented gift packs. Customers who are not sure about their choice can use one of the company’s 40 wine advisors to get a personalized recommendation matching their specific tastes and preferences.
Responsible business
Looking back, Jay Wright reflects that turning the company around from a heavily loss-making business into one of the largest direct-to-customer wine companies in the UK with 180,000 happy customers is an achievement to be proud of, both for the management and the employees.
“We have a great time doing what we do but we take what we do seriously. We are very professional about our business and at the same time, try to create a good environment for our people to thrive and fulfil their professional ambitions. We always try to promote from within and we have many people who started in a variety of junior roles and have made it to the top in Virgin Wines, which has been very rewarding for me to see.”
Virgin Wines is firmly committed to achieving its ESG ambitions and is also the first online wine retailer to be certified Carbon Neutral via the PAS 2060 standard. Last year the company achieved a 25% reduction in its Scope 1 and 2 emissions.
“In 2023 our carbon footprint decreased by 42% as a result of bulk shipping into the UK, which represented just under 40% of all our wines shipped last year. We have a number of other initiatives to support sustainability and our environmental, social and governance credentials are high on our agenda,” affirms Wright.
Great wines for happy customers
Despite the challenging economic environment, Virgin Wines continues to enjoy a robust market position as having a glass of wine remains a cherished pleasure even in difficult times. “We are fortunate to have a lot of avid wine fans and we make sure to offer a wide range of different styles of wine from different countries and regions to please any taste. Essentially, we offer great value for money, and this is something especially appreciated in this day and age – we make sure that every bottle that we sell exceeds people’s expectations.”
“In this highly competitive environment, what I care about is having happy customers. I want customers to love buying from Virgin Wines, to look forward to that box turning up on their doorstep, to enjoy opening those bottles knowing they are getting great wines. That is our mission.”
He affirms that given the company’s healthy financial position, Virgin Wines continues to look for new opportunities. “We have a very clear vision of how we want to grow the business. The aim is to add real value to our business, our customers as well as our shareholders,” he concludes.
