Non-alcoholic drinks store Sans Drinks has been rescued from the brink of collapse by online wine retailer Just Wines.
In late July, Power Retail reported that Nourished Life founder Irene Falcone’s booze-free drinks company Sans Drinks had appointed administrators and been forced to shut down its physical stores, moving to a fully online model. Following the second creditors’ meeting on Monday August 21, Sans Drinks has announced it has sold the business and assets to Australian online wine retailer, Just Wines. The meeting also resulted in the creditors accepting the proposed Deed of Company Arrangement (DOCA) proposal. According to a media release from Sans Drinks, this means ‘secured and employee creditors are likely to be paid in full, with unsecured creditors set to receive an estimated 48 cents in the dollar, all in the next three months.’
Voluntary administrator Andrew Spring, Partner with business turnaround and insolvency specialist Jirsch Sutherland, calls the result “a great example of the benefit of voluntary administration (VA) as a business rescue process”.
Founder Irene Falcone said “The decision to enter into the VA was a difficult one, and I’m incredibly grateful to the team at Jirsch Sutherland, who really guided me every step of the way. I’m thrilled that Sans Drinks is part of the Just Wines family and I’m looking forward to the next chapter for Sans Drinks.” She will continue to be involved in the business through this next chapter with Just Wines as a consultant in strategy and marketing.
Just Wines was founded in 2012 to support small wineries and provide an accessible platform for sellers and wine aficionados to connect. The online store stocks over 6000 wines from across Australia and Aotearoa New Zealand.
“There are great synergies between the two brands and we’re looking forward to working with Irene to take Sans Drinks to the next level,” Just Wines’ founder Nitesh Bhatia says. “This is a great fit: Irene has vast experience in marketing and promotion, and Just Wines has a strong track record in administration, operations, and managing the supply chain. As the non-alcoholic sector is a real growth area, this will enable Sans Drinks, which is already the number one retailer in this segment, to grow at a much faster pace. We’re looking forward to advising the customers of both brands about this exciting development,” Bhatia concluded.
The non-alcoholic beverage sector is indeed a ‘real growth area’ with IWSR Drinks Market Analysis reporting that 31 percent of Australian consumers now buy no-alcohol products, with volumes of booze-free drinks increases by 60 percent in 2022. The non-alcoholic wine sector in particular is set to grow tech advances in the de-alcoholisation process, reports IWSR.
Sydney Morning Herald reports the deal saw Just Wines snatch up the business for $1.8m.