Awards and citations:


1997: Le Prix du Champagne Lanson Noble Cuvée Award for investigations into Champagne for the Millennium investment scams

2001: Le Prix Champagne Lanson Ivory Award for investdrinks.org

2011: Vindic d'Or MMXI – 'Meilleur blog anti-1855'

2011: Robert M. Parker, Jnr: ‘This blogger...’:

2012: Born Digital Wine Awards: No Pay No Jay – best investigative wine story

2012: International Wine Challenge – Personality of the Year Award




Sunday, 18 September 2011

1855 (1855.com/1855.con): as losses mount injections of capital keeps leaky company afloat

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.

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.

3 comments:

Anonymous said...

I like your conclusion, Jim. Quite gifted geniuses indeed!

Anonymous said...

I purchased and paid for Bordeaux futures and am still waiting... nearly 2 years after promised delivery. 1855.com specializes in making excuses and repeatedly breaking promises ("...will be delivered next month.."). CEO Emeric Sauty de Chalon ignored my registered letter to him. Shameful. Irinically, I just received their latest catalong proposing a 20% discount on the latest futures, which are at record-high prices. That offer shouldn't be touched! This company has no respect for its customers and their money.

Jim Budd said...

Anon: 'That offer shouldn't be touched! This company has no respect for its customers and their money.'

Wise advice!