• by Erik Oster , July 24, 2023

Last week, Vintage Wine Estates -- among the country’s top 20 wineries by revenue, according to Wine Business -- appointed Seth Kaufman as its new president and CEO, beginning the role no later than Oct. 30.

Kaufman succeeds Interim CEO Jon Moramarco, who will continue in his position as director, and Terry Wheatley, who resigned as president effective July 19. Kaufman joins from legacy luxury mammoth LVMH, where he spent four years as president and CEO for Moët Hennessy North America.

Moramarco has served as interim CEO since Founder Pat Roney transitioned into an executive ehairman role in February as part of a broader series of structural changes to the company’s executive leadership team and board of directors.

The company reported a 2023 preliminary revenue estimate of $290 million, while anticipating a drop in revenue to $250-$270 million for 2024. As part of its business realignment, the company sold Calistoga, California-based Tenma Vineyardearlier this year, and has also shuttered its Tamarack facility, reduced personnel and production costs, and streamlined ad spending.

“Fiscal 2024 will be a year of transition and while we expect revenue to decline, we plan for margins to measurably improve,” Moramarco said in a statement, adding the company believed its strategy would put it in place to scale for future growth after 2024.

On a subsequent investor relations call, Moramarco explained that the company had wrapped up plans for the holiday season ahead of the leadership transition and “reset year” of 2024.

“With my role, I’ve been trying to make sure we’re doing the right things tactically and strengthening the foundation,” he said on the call, “so that when Seth comes in he can look at, strategically, a lot of opportunities with this business and what paths he is going to pursue.”

Responding to another analyst question, Moramarco said that mergers and acquisitions will be “a critical component of growth going forward,” hinting that Kaufman “sees opportunities in growing the existing portfolio, but that there’s also going to be opportunities to enhance the portfolio through M&A.”