Naked success as wine seller targets expansion

THE boss of Majestic Wine has outlined plans to win new customers by doubling the amount the company spends on marketing.

Chief executive Rowan Gormley will splash out an extra £9m to £12m a year to lure wine lovers to Majestic and its sister company, Naked Wines.

The 55-year-old, who set up Naked in 2008 and sold it to Majestic in 2015, becoming boss of the combined group in the process, said the investment would dent profits by up to £3m in 2019.

But he added that it would earn between £48m and £80m a year in future. Shares fell 4pc in early trading but bounced back sharply – closing up 9.6pc – as investors focused on the long-term.

The investment will be spent on online adverts as well as through firms such as Hotel Chocolat and shirt-maker Charles Tyrwhitt as Majestic seeks to tap up their customers.

Gormley said his customers typically start buying wine from the company in their 30s.

‘The thing that makes them different is they are the kind of people who wouldn’t turn up at a dinner party having bought flowers from a service station or a box of Quality Street,’ he said. ‘It is the people who care about the nice things in life.’