After 9 years, Boozebud has collapsed and has been taken over by voluntary administrators.
👉 Background: Boozebud originally launched in 2014 under the name BeerBud with a focus on craft beer, before rebranding to Boozebud to include a wider range of alcohol.
👉 What happened: In late 2021, Boozebud acquired Get Wines Direct. And this acquisition put Boozebud in the big leagues - we’re talking 200,000 active customers and $80 million in combined annual revenue.
👉 What else: But now, after 9 years, Boozebud has collapsed and has been taken over by voluntary administrators.
💡This serves as a cautionary tale about the challenges of scaling a business. Scaling a business takes careful planning and management - there are challenges like maintaining quality across brands, ensuring smooth integration of companies and requires a much stronger focus on financial management.
💡And Boozebud isn't the only fast-scaling retailer to collapse recently. After growing year on year, BWX acquired a majority stake of Zoe Foster Blake’s company Go To Skincare. And they launched a new brand, Purely Byron, with Elsa Pataky which collapsed.
💡The acquisition of Get Wines Direct initially seemed promising, but it did not guarantee success for BoozeBud. So sadly, scaling too fast, too soon sometimes doesn’t end well.
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