WEBVTT - Chobani COO on Ability to Innovate Amid Pandemic

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<v Speaker 1>You're listening to Bloomberg Business Week with Carol Messer and

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<v Speaker 1>Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Well, if

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<v Speaker 1>you walk into a grocery store, you go to the

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<v Speaker 1>dairy section, you're going to see Chobani. It's certainly a

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<v Speaker 1>mainstay of yogurt here in the United States. The company

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<v Speaker 1>launched back in two thousand seven and in recent years

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<v Speaker 1>has been branching out beyond traditional Greek yogurt. Let's get

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<v Speaker 1>to Peter McGinnis. He's president and chief operating officer at Chobanni.

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<v Speaker 1>He joins us on the phone from New York City. Peter,

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<v Speaker 1>it's good to talk to you again. How are you doing, Hey, Tim,

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<v Speaker 1>I'm well. How about yourself? I'm doing well. Thanks. How

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<v Speaker 1>are things going at Chobani? How how has the pandemic been.

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<v Speaker 1>What was the last year like for you? Well, the

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<v Speaker 1>pandemic has been tough for everybody in all businesses. But

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<v Speaker 1>I'm proud of how we performed. UM. We set out

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<v Speaker 1>very early, Tim, very very early on UM to take

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<v Speaker 1>care of our employees, keep them safe and supported. Uh.

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<v Speaker 1>Safe was the first thing, and so hoarded really was

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<v Speaker 1>parallel and concurrent and supported was childcare subsidies and special bonuses,

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<v Speaker 1>UH and time off to get vaccinated. And it really

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<v Speaker 1>created a healthy, happy, productive workforce. And so we didn't

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<v Speaker 1>close a single day. We operated twenty four hours a day,

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<v Speaker 1>seven days a week throughout the entire pandemic because the

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<v Speaker 1>demand was there. So the plants, the factories ran really well,

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<v Speaker 1>long and hard and UH and it was an investment.

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<v Speaker 1>Wasn't an expense to take care of her employees like

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<v Speaker 1>that because they're healthier and happier, more productive and wanted

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<v Speaker 1>to come to work. It's really remarkable to hear because

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<v Speaker 1>over the last year we've heard some just some devastating

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<v Speaker 1>stories from food processing plants throughout the United States where

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<v Speaker 1>coronavirus outbreaks took the lives of so many employees. But

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<v Speaker 1>you put measures in place early at the company, and

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<v Speaker 1>as a result, there were no coronavirus outbreaks in your

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<v Speaker 1>plant here in New York and South Edmonston and UH,

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<v Speaker 1>neither in the one in Twin Falls, idahou as well. Correct. Correct,

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<v Speaker 1>there was community spread, but there was no plant outbreak

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<v Speaker 1>or spread and and that was critical. And we jumped

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<v Speaker 1>on this in mid March to him when it was

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<v Speaker 1>unpopular to be honest, I mean, let's set the frank

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<v Speaker 1>conversation here. Um, it was considered a downstate issue. If

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<v Speaker 1>you go way back a year ago March, and there

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<v Speaker 1>was no cases upstate New York. There were no cases

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<v Speaker 1>in Idaho. And we jumped on masks when it was

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<v Speaker 1>still confusing our mass good, bad, and different. Remember all

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<v Speaker 1>that confusion, Um, And we mandated masks, and we were

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<v Speaker 1>able to get equipment, ton of ppe equipment, and we

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<v Speaker 1>cleaned every every two hours in the factories because remember

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<v Speaker 1>back then they thought it was really spread able on surfaces.

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<v Speaker 1>And we're able to get temperature equipment when you couldn't

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<v Speaker 1>find it. And this is all done second week of March.

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<v Speaker 1>And it was interesting because, um, was it wildly popular initially? No.

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<v Speaker 1>But our job as a company, your primary job, whether

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<v Speaker 1>I'm president or CEO or the executive leadership team or

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<v Speaker 1>as a company is to keep your employees safe and

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<v Speaker 1>also keep the company operate. Well, let's talk about even

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<v Speaker 1>that there were surge demand. Well, want to talk about

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<v Speaker 1>that surgeon demand, because you mentioned that you continued operating

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<v Speaker 1>because the demand was there, even thinking back to last March,

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<v Speaker 1>last April when so many companies were struggling with supplied

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<v Speaker 1>chain issues. UM, how did you How were you able

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<v Speaker 1>to keep things going? Again, very proud of the team

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<v Speaker 1>or sourcing team leaned in on preordering milk, cultures, fruit cups, foils,

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<v Speaker 1>all up and down the supply chain UM and we

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<v Speaker 1>have great partnerships UM throughout our supply chain, and we

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<v Speaker 1>were able to secure and procure what we needed UM

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<v Speaker 1>and so we had no interruption on the supply chain

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<v Speaker 1>side of things. So in terms of the plants running

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<v Speaker 1>and us having enough raw material, we powered through it

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<v Speaker 1>and even powered through the height of the pantry loading,

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<v Speaker 1>which was third week of March, you know, year ago

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<v Speaker 1>March and fourth week of March, and so proud of that.

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<v Speaker 1>Not only did we do that him we launched three

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<v Speaker 1>new categories. We launched oat milk, creamers and and cough

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<v Speaker 1>r t V Coffee in the pandemic, so three new platforms,

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<v Speaker 1>and we launched fifty new line extensions throughout all of this,

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<v Speaker 1>so we were able to innovate on top of just

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<v Speaker 1>operating the base business effectively. How are those platforms doing those?

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<v Speaker 1>How is the oat milk doing, how are the new

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<v Speaker 1>products doings? It's great, I mean, within a year we

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<v Speaker 1>became number two oat milk and US Food close to it.

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<v Speaker 1>You know, over twenty share, which is just phenomenal. We're

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<v Speaker 1>really happy and that's really the strength of the brand

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<v Speaker 1>branded Chobanni. Chobani stands for trust and quality, and so

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<v Speaker 1>we have a master brand, not a house of brands.

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<v Speaker 1>A lot of CpG companies have all these sub brands.

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<v Speaker 1>We are Chabanni, So it's Givanni yogurt, Sabani oat milk,

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<v Speaker 1>Sibani coffee creamer. And so when you break into these categories,

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<v Speaker 1>we get we get quick trial and we scale quick

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<v Speaker 1>because the brand is known, trusted, loved, and then the

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<v Speaker 1>food is great, so we have high repeat So the

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<v Speaker 1>Oapen milk performance has been wild. We're really happy with it,

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<v Speaker 1>and we continue to gain um distribution as we speak.

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<v Speaker 1>And so i'd say we're just in the beginning, but

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<v Speaker 1>we're over twenty share already. Coffee creamer close to a

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<v Speaker 1>twenty share and you know in U S Food overtook

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<v Speaker 1>Starbucks and Dunkin Donuts in the creamer segment and then

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<v Speaker 1>RTD Coffee has only been out for a few months.

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<v Speaker 1>Peter Shabani was started back in two thousand seven, and

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<v Speaker 1>there have been a handful of changes in how the

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<v Speaker 1>company has been struck sure over the last few years.

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<v Speaker 1>I know your role has changed significantly over the last

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<v Speaker 1>few years, going from a marketing role to the chief

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<v Speaker 1>operating officer role. Talk to me about how you're thinking

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<v Speaker 1>about the future of Chobani. The Wall Street Journal reporting

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<v Speaker 1>earlier this this year, uh that you guys are eyeing

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<v Speaker 1>an I p oh this year with evaluation between seven

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<v Speaker 1>and ten billion dollars. Yeah, Tim, So I can't talk

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<v Speaker 1>about an I p O today on this beautiful sunny Friday. Um,

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<v Speaker 1>but look, I think we're going to continue doing what

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<v Speaker 1>we're what we do, UM, we disrupt and we challenge

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<v Speaker 1>the status quo. And I think that goes back to

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<v Speaker 1>Handy's really original vision and philosophy. He came to this

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<v Speaker 1>country from Turkey. He looked at the food system in

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<v Speaker 1>the food industry. He saw a lot of exclusive food

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<v Speaker 1>and specialty stores that was high quality but but but

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<v Speaker 1>high price. And so that notion of democratizing better options

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<v Speaker 1>and better food from more people, and good food is

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<v Speaker 1>a right, not a village, um, really is what keeps

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<v Speaker 1>us going every day. And so that's why we've built

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<v Speaker 1>factories UM over the last several years, we've built critical disciplines.

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<v Speaker 1>We're men housing our entire marketing department and advertising and

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<v Speaker 1>designed to our sales functions to our retail execution team.

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<v Speaker 1>All of that is now in house. UM. We've built

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<v Speaker 1>a plant within a plant in Idaho to do creamers

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<v Speaker 1>and rt D coffee and because we wanted to disrupt

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<v Speaker 1>those categories and elevate them. And so we're going to

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<v Speaker 1>continue doing what we're doing, and that is UM providing

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<v Speaker 1>better options for more people in many categories because the

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<v Speaker 1>brand not only is it's strong, it can stretch. What

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<v Speaker 1>are those are? What are those other categories, Peter that

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<v Speaker 1>you're eying right now? We'll stick with the four because

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<v Speaker 1>a year ago we were in one category. Today we're

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<v Speaker 1>in four, and we have more work to do UM

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<v Speaker 1>and so we're gonna focus on maximizing these four UM,

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<v Speaker 1>but it won't end there, Jim. And then we're also

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<v Speaker 1>going into new channels. You know, we're deeper in drug

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<v Speaker 1>and convenience. We're deeper into food service now, particularly with

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<v Speaker 1>our oat milk barrista, so you're seeing us at more cafes.

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<v Speaker 1>We went south of the border into Mexico. WHA is

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<v Speaker 1>a huge market and um, we're gonna exponentially grow in Mexico.

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<v Speaker 1>We went north of the border into Canada with all

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<v Speaker 1>of our plant based options as well. How do you

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<v Speaker 1>how do you guys think about grocery delivery, Peter, I don't.

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<v Speaker 1>I don't mean to keep cutting you off, but we

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<v Speaker 1>only have a few minutes left and there's a lot

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<v Speaker 1>that I want to get to. Um, how do you

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<v Speaker 1>think about grocery delivery as it is increased during the pandemic?

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<v Speaker 1>I mean, have you have you had to make changes

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<v Speaker 1>to the way that you are allocating or at least

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<v Speaker 1>selling to different types of grocery stores brick and mortar

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<v Speaker 1>versus the large players and delivery like Amazon owned Whole Foods. Yeah,

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<v Speaker 1>we've always been big at Amazon, Kim we have like

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<v Speaker 1>we're share leader, um, whether Yogurts there and now Oat Milks,

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<v Speaker 1>So it has not fundamentally changed. And most of the

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<v Speaker 1>brick and mortars, whether it's Walmart or Target or shop

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<v Speaker 1>right here locally we're stopping shop on that is also deliver,

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<v Speaker 1>So they're brick and mortar, but they're also they're not

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<v Speaker 1>sure play online. But they're they're brick and mortar, and

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<v Speaker 1>they have online components and so they're doing delivery and

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<v Speaker 1>we get our fair share of that. So we haven't

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<v Speaker 1>had to fundamentally change our playbook on that to take

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<v Speaker 1>advantage of, you know that trend. Let's talk labor and employees,

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<v Speaker 1>because we got the jobs report last week that was

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<v Speaker 1>a shock to many many people two sixty six thousand

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<v Speaker 1>jobs added versus expectations from economists for a million new jobs.

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<v Speaker 1>There's tension between attracting employees because these jobs are available,

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<v Speaker 1>as we learn from the Jolts data earlier this week,

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<v Speaker 1>but people are not necessarily going to those jobs. Are

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<v Speaker 1>you having a hard time attracting employees right now? We

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<v Speaker 1>are faring better, tim but the labor market is tight,

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<v Speaker 1>and I don't want to say we're immune. We're faring better,

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<v Speaker 1>and I really think it's a it's fundamentally tim from

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<v Speaker 1>what I what we just discussed in the last segment,

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<v Speaker 1>which is we took care for employees through the pandemic

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<v Speaker 1>and they are that is that that pays off over time?

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<v Speaker 1>I mean not, you know, it's an investment, not an extent,

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<v Speaker 1>and doing the right thing, it's good for business and

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<v Speaker 1>so our retention rates are quite high. So we haven't

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<v Speaker 1>had high attrition. That's the first piece. The second piece,

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<v Speaker 1>the brand is pretty exciting and we're breaking in the

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<v Speaker 1>new categories and we're liked as a company. So a

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<v Speaker 1>recruitment UM has been good shape. It's been quite effective UM,

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<v Speaker 1>but it's not what it used to be. So I'm

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<v Speaker 1>not going to figure and tell you that we're completely insulated.

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<v Speaker 1>We're just faring better. When to that point, when when

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<v Speaker 1>you do find you you lose employees, where do they go?

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<v Speaker 1>A myriad of places? There's more options tim UM And

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<v Speaker 1>like I said, our attrition is very low. But when

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<v Speaker 1>people do leave, UM, there are uh. First of all,

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<v Speaker 1>the when you look at the federal programs and the

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<v Speaker 1>state programs that all rolls up to that nineteen close

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<v Speaker 1>to it right in New York. And I think that's

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<v Speaker 1>what you're getting at. That's hard to compete with you

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<v Speaker 1>think about it, UM, But look, because the economy is

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<v Speaker 1>so hot, there's a lot of building going on here,

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<v Speaker 1>so you know, could lose people to construction jobs and

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<v Speaker 1>landscaping jobs that have more flex hours. UM. There are

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<v Speaker 1>a lot of distribution centers being built new factories being built.

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<v Speaker 1>There's just more competition um, and it hasn't been an

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<v Speaker 1>issue for us yet, and I think that's because of

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<v Speaker 1>what we've We've been a very employee centered company from

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<v Speaker 1>the beginning, and we took care of our people, and

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<v Speaker 1>like I said, throughout the pandemic, we've given special bonuses

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<v Speaker 1>and shy ot care subsidies. Those are still in place.

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<v Speaker 1>So all those things that we did in the pandemic

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<v Speaker 1>um have come to play now in terms of our

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<v Speaker 1>low attrition and high retention. Peter McGinnis, we are going

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<v Speaker 1>to have to leave it there. It was really great

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<v Speaker 1>to reconnect with you. Thanks so much for taking the

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<v Speaker 1>time and for joining us on Bloomberg Business Week Radio.

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<v Speaker 1>Peter McGinnis is president and chief operating officer at Chobani.

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<v Speaker 1>He joined us today on the phone from here in

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<v Speaker 1>New York City. Well, it's Friday, just before five pm,

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<v Speaker 1>so the perfect time to enjoy a glass of wine,

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<v Speaker 1>or at least talk about wine, and that's gonna be

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<v Speaker 1>with Terry Wheatley, president of Vintage Wine Estates. She joins

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<v Speaker 1>us on the phone from Sonoma, California. Vintage Wine Estates

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<v Speaker 1>as a portfolio of wines and spirits from wineries throughout Napa, Sonoma, Oregon,

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<v Speaker 1>and Washington and also California's Central coast, which is where

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<v Speaker 1>I'm from. So this is particularly special for me. Terry,

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<v Speaker 1>thanks so much for joining us. How you doing, Oh,

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<v Speaker 1>I'm doing great. I'm doing great. Thank you for having me. Well,

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<v Speaker 1>let's talk about the wine business right now, because Vintage

0:13:03.000 --> 0:13:07.280
<v Speaker 1>Wine Estates is set to i p O later this month. Um,

0:13:07.400 --> 0:13:10.920
<v Speaker 1>why is now the right time to to i p O? Well,

0:13:11.200 --> 0:13:14.000
<v Speaker 1>you know, why go public now? I would say many

0:13:14.040 --> 0:13:17.719
<v Speaker 1>of the wine companies have really suffered during the pandemic

0:13:17.800 --> 0:13:21.680
<v Speaker 1>with their tasing rooms closed, which is a great source,

0:13:22.200 --> 0:13:25.199
<v Speaker 1>primary source of wine club sign ups, uh, their on

0:13:25.200 --> 0:13:29.000
<v Speaker 1>premise business clothes across the country. So we are entering

0:13:29.080 --> 0:13:34.400
<v Speaker 1>and precedented time of opportunity for acquisitions. So for us

0:13:34.440 --> 0:13:37.640
<v Speaker 1>to access the public market, it just made sense for

0:13:37.720 --> 0:13:40.960
<v Speaker 1>us to get that firepower in capital to go out

0:13:41.040 --> 0:13:46.000
<v Speaker 1>and continue our track record of acquisition. So we've done

0:13:46.280 --> 0:13:48.679
<v Speaker 1>We've done twenty acquisitions in the last ten years, so

0:13:48.720 --> 0:13:52.000
<v Speaker 1>we're looking to do twenty more in the next town,

0:13:52.320 --> 0:13:55.320
<v Speaker 1>if not more twenty or more in the next decade.

0:13:55.720 --> 0:13:58.520
<v Speaker 1>That's a large number. I'm I'm wondering, and then this

0:13:58.600 --> 0:14:01.600
<v Speaker 1>is your you're planning to raise six million dollars in

0:14:01.640 --> 0:14:06.160
<v Speaker 1>the I p o M. Are there certain regions that

0:14:06.200 --> 0:14:08.440
<v Speaker 1>you're looking at. Are there's certain types of wineries? Are

0:14:08.480 --> 0:14:11.520
<v Speaker 1>there certain types of spirits? What's appealing to you from

0:14:11.559 --> 0:14:15.640
<v Speaker 1>an acquisition perspective right now? Well, we're really we will

0:14:15.640 --> 0:14:19.000
<v Speaker 1>not acquire a spirit company. We will be looking in

0:14:19.120 --> 0:14:23.880
<v Speaker 1>the wine space, primarily California. We do look um at

0:14:23.920 --> 0:14:27.920
<v Speaker 1>Califnor Washington and Oregon. If you're from the central coast,

0:14:27.960 --> 0:14:30.800
<v Speaker 1>that's really attractive to us. We have that you might

0:14:30.800 --> 0:14:33.840
<v Speaker 1>be familiar with the Latitia Winery here in San Luzibeth's boat.

0:14:35.600 --> 0:14:38.480
<v Speaker 1>Oh my gosh, that's great. Well that that winery has

0:14:38.520 --> 0:14:42.360
<v Speaker 1>been a tremendous purchase for us and continues to do

0:14:42.440 --> 0:14:47.479
<v Speaker 1>really well. Um So that type of of of acquisition wineries,

0:14:47.600 --> 0:14:51.920
<v Speaker 1>we we really play in that candid twenty retail sweet

0:14:51.920 --> 0:14:55.840
<v Speaker 1>spot will probably acquire there. We may step it up

0:14:55.840 --> 0:15:00.400
<v Speaker 1>a little bit, maybe it'll go into a bottle at detail,

0:15:00.480 --> 0:15:04.680
<v Speaker 1>but really focused on California, Washington, Oregon. You won't see

0:15:04.760 --> 0:15:09.560
<v Speaker 1>us buying international properties or things on the East Coast

0:15:09.640 --> 0:15:12.440
<v Speaker 1>or Texas or he placed alf really focused on the West.

0:15:12.480 --> 0:15:14.600
<v Speaker 1>So Terry, when you do buy a winery such as

0:15:14.640 --> 0:15:17.840
<v Speaker 1>Letitia and you do incorporate it into the vintage Winea

0:15:17.920 --> 0:15:20.560
<v Speaker 1>States portfolio, what are the changes that that you bring

0:15:20.640 --> 0:15:24.800
<v Speaker 1>that you make to increase efficiencies to make the acquisition

0:15:24.840 --> 0:15:30.040
<v Speaker 1>makes sense well for Letitia. The great thing about the

0:15:30.080 --> 0:15:34.400
<v Speaker 1>way we purchase UM, maybe up against other people in

0:15:34.440 --> 0:15:37.320
<v Speaker 1>our peer group, is that we did we try to

0:15:37.400 --> 0:15:42.239
<v Speaker 1>keep the infrastructure the same. So the winemaker or Kicky

0:15:42.360 --> 0:15:45.000
<v Speaker 1>Um is still the winemaker there. His father was actually

0:15:45.040 --> 0:15:49.560
<v Speaker 1>the winemaker previous to him. But we infused capital to

0:15:49.840 --> 0:15:54.720
<v Speaker 1>We just put in some UM additional production capability there.

0:15:55.240 --> 0:15:59.720
<v Speaker 1>We're improving the vineyard, just increased capital. We're working on

0:15:59.800 --> 0:16:04.520
<v Speaker 1>as you probably know, driving into Letitia is a little interesting,

0:16:04.600 --> 0:16:09.320
<v Speaker 1>so we're working on a new UM entrance and how

0:16:09.360 --> 0:16:13.240
<v Speaker 1>you get out of of of the property. So again

0:16:13.320 --> 0:16:16.120
<v Speaker 1>it's it's capital. We go in and we take out

0:16:16.200 --> 0:16:20.760
<v Speaker 1>the redundancy, so we bring in their uh financial um,

0:16:20.800 --> 0:16:24.200
<v Speaker 1>you know, all their finance teams and stuff. We incorporate that.

0:16:24.360 --> 0:16:28.600
<v Speaker 1>So the back office we really try to incorporate rate

0:16:28.760 --> 0:16:32.480
<v Speaker 1>that into the village Juana States headquarters. But besides that,

0:16:33.080 --> 0:16:37.560
<v Speaker 1>we try to keep these wineries, individual with individual personalities

0:16:37.680 --> 0:16:40.800
<v Speaker 1>and and it's really worked for us. So I'm so

0:16:41.040 --> 0:16:44.520
<v Speaker 1>pleased that you're so familiar with Latitia. Yeah, among many

0:16:44.560 --> 0:16:46.120
<v Speaker 1>I mean among many other. I mean you drive there

0:16:46.160 --> 0:16:48.840
<v Speaker 1>these days in California Central Coast and it's just vineyards

0:16:48.760 --> 0:16:50.440
<v Speaker 1>as far as the I can see, which raises the

0:16:50.520 --> 0:16:53.440
<v Speaker 1>question just about climate change and water, because that's something

0:16:53.480 --> 0:16:56.080
<v Speaker 1>that many areas of California struggle with. How do you

0:16:56.080 --> 0:16:59.200
<v Speaker 1>think about the natural resource like water and and and

0:16:59.320 --> 0:17:03.320
<v Speaker 1>that it is in fact, um, it's it's you know,

0:17:03.600 --> 0:17:09.480
<v Speaker 1>always a drought, well not always, not always, but it

0:17:09.560 --> 0:17:12.280
<v Speaker 1>feels like we're you know, we're in a drought right now,

0:17:12.320 --> 0:17:16.040
<v Speaker 1>which makes for interesting farming. But where we can we

0:17:16.119 --> 0:17:19.560
<v Speaker 1>dry farm? Um, we are always looking at water conservation,

0:17:19.760 --> 0:17:22.639
<v Speaker 1>recycling and so forth. We do that with the energy

0:17:23.320 --> 0:17:28.360
<v Speaker 1>our production UM plant up in Hopland we have of solar,

0:17:28.680 --> 0:17:33.040
<v Speaker 1>so we we try to make our entire facility there, um,

0:17:33.080 --> 0:17:36.520
<v Speaker 1>you know, supported by our solar panels. So we really

0:17:36.560 --> 0:17:40.639
<v Speaker 1>do have an eye on sustainability for um, you know,

0:17:40.640 --> 0:17:44.160
<v Speaker 1>our vineyards, with water conservation and so forth. So it's

0:17:44.280 --> 0:17:47.760
<v Speaker 1>top of mine in everything that we do. But you know,

0:17:47.880 --> 0:17:51.080
<v Speaker 1>we are in California. We are in in the farming

0:17:51.119 --> 0:17:56.280
<v Speaker 1>heartlands and UM, so that is always a concern. But

0:17:56.400 --> 0:18:01.159
<v Speaker 1>if you're constantly working on UM how you protect the

0:18:01.160 --> 0:18:03.720
<v Speaker 1>water resources. We feel like that we have a good

0:18:03.720 --> 0:18:06.040
<v Speaker 1>planet place. And Terry, you mentioned the way that the

0:18:06.080 --> 0:18:10.040
<v Speaker 1>tasting rooms UH and and actually on premise just took

0:18:10.080 --> 0:18:13.080
<v Speaker 1>a hit during the pandemic, and how wine clubs were

0:18:13.119 --> 0:18:15.400
<v Speaker 1>really affected because tasting rooms are such a big part

0:18:15.440 --> 0:18:19.000
<v Speaker 1>of how people actually learn about wines. What adjustments did

0:18:19.040 --> 0:18:21.479
<v Speaker 1>did you guys make to your portfolio of brands at

0:18:21.520 --> 0:18:25.399
<v Speaker 1>Vantage Wines States. How did you get through the pandemic. Well,

0:18:25.440 --> 0:18:30.280
<v Speaker 1>you know, unlike other wineries in our parent group, we

0:18:30.400 --> 0:18:33.600
<v Speaker 1>actually grew during the pandemic in our directed consumer of business.

0:18:33.640 --> 0:18:37.560
<v Speaker 1>So we are lucky that we're diversified, and we have

0:18:38.600 --> 0:18:43.600
<v Speaker 1>fourteen tasting rooms. Again that really feeds our nineteen wine clubs.

0:18:43.640 --> 0:18:47.560
<v Speaker 1>But we have an e commerce UH email list of

0:18:47.600 --> 0:18:51.359
<v Speaker 1>over eight hundred and fifty thou people. We mind that

0:18:51.840 --> 0:18:55.719
<v Speaker 1>e commerce list during the pandemic. We own the Cameron

0:18:55.800 --> 0:18:59.600
<v Speaker 1>Hughes brand. We believe that's the largest digitally native wine

0:18:59.680 --> 0:19:02.359
<v Speaker 1>rand now out there that really grew during the pandemic.

0:19:02.600 --> 0:19:07.440
<v Speaker 1>We have a telesales group that is selling the telephone. Yes,

0:19:07.520 --> 0:19:10.000
<v Speaker 1>people still do that, but the Windsor wine brand where

0:19:10.040 --> 0:19:13.359
<v Speaker 1>you're do custom labels and people shop that. And last

0:19:13.400 --> 0:19:16.800
<v Speaker 1>but not least, we we do probably the wines that

0:19:16.840 --> 0:19:20.560
<v Speaker 1>are sold on TBC. That business just went through the roof.

0:19:21.000 --> 0:19:24.080
<v Speaker 1>So there's we had multiple letters that we could pull

0:19:24.440 --> 0:19:28.000
<v Speaker 1>to grow during the pandemic, Unlike other people in the

0:19:28.040 --> 0:19:31.600
<v Speaker 1>wine space. Terry Wee, Lee's president of Vintage Wine Estates

0:19:31.680 --> 0:19:34.520
<v Speaker 1>joining us on the phone from Sonoma, California. Terry, thanks

0:19:34.520 --> 0:19:36.240
<v Speaker 1>so much for taking the time