Virgin Wines Shares Jump on Ocado Strategic Partnership

Virgin Wines UK (LON: VINO) shares rose 5.6% in early trading on Friday after the company announced a strategic partnership with Ocado (LON: OCDO), the online supermarket business.

The collaboration, which began on October 2nd, allows Ocado customers to access an exclusive selection of 50 wines curated by both Virgin Wines and Ocado's buying teams.

The move marks a shift for Virgin Wines, as the wines were previously only available to their own customers and sold in multi-bottle cases. Ocado shoppers can now purchase the wines individually.

Virgin Wines said it is committed to providing customers with high-quality wines sourced from small-batch producers and offered at competitive prices.

The partnership leverages its unique customer-driven buying model to expand its reach and create value with another leading brand.

“We are thrilled to be working with Ocado to bring our expertise in sourcing and creating wines to its considerable audience,” said Jay Wright, CEO of Virgin Wines.

“This collaboration allows us to introduce Ocado customers to a hand-picked selection of exclusive wines from our large and distinctive portfolio.”

Virgin Wines' extensive network of independent winemakers allows them to curate a constantly evolving selection. Wright expressed confidence that the chosen wines will resonate with both experienced wine enthusiasts and those seeking new discoveries.

The partnership appears to be mutually beneficial, with Ocado providing Virgin Wines access to a wider customer base and Virgin Wines offering Ocado a selection of wines that complement their existing offerings.

Following the news, Virgin Wines shares rose 5.57% to 41.8p shortly after the open. The stock is up 12.1% this year but has declined more than 13% in the last six months.