Beached boat – a fate awaiting 1855?
A brief article in the latest edition of La Revue des Vins de France on the 2010 accounts of 1855 makes fascinating and revealing reading. The accounts make dismal reading for Messieurs Émeric Sauty de Chalon and Fabien Hyon as well as their shareholders. 1855's turnover is on the slide: down nearly 24% in 2010 compared to the previous year: 7,620,722€ (2010) against 9,996,144€ (2009). If this wasn't bad enough turnover has dropped by 33% since 2008 (11,358,845€) and is now lower than it was in 2006 (8,633,856€).
Losses have mounted rising from – 73,963€ (2009) to 780,107€ in 2010. However, this does compare favourably with losses of 1.7m (2006), 8m (2007) and 3.9m (2008). Of course, given 1855's record in failing to buy significant quantities of the wines their customers have paid for it is reasonable to wonder how realistic the relatively small loss was in 2009.
Doubtless 1855 will offer the continuing economic crisis as an excuse for the marked fall in turnover and increasing losses but it may also be an indication that 1855's terrible reputation – '1855.com worst wine retailer on the web' – is finally damaging their business.
Doubtless 1855 will offer the continuing economic crisis as an excuse for the marked fall in turnover and increasing losses but it may also be an indication that 1855's terrible reputation – '1855.com worst wine retailer on the web' – is finally damaging their business.
During the course of 2010 there were a number injections of capital totalling 11.2m€. This fresh capital helped 1855 buy two wine e-commerce companies: Cave Privée in November 2010 followed by ChâteauOnline in February. I presume also that some of this capital helped to keep 1855 afloat and one has to wonder what would happen if the shareholders, among them Jean-Pierre Meyers, decided that they had poured enough money into the 1855 vat.
I have to admit to being staggered by 1855's losses: they trouser a considerable quantity of their customers' cash and don't supply the wines ordered. Surely a recipe for fat profits! To make a loss in these circumstances surely requires rare financial genius and acumen.
