The Drinks Wholesaler August 2016

Shaping the UK drinks trade

Vol. 01 No. 03

Currency Shift | 5 On-Trade Report | 8 Edinburgh Forum | 10

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AUGUST 2016

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@drinkswholesale

Premium Malt Best of British Merchant Mores Family Business

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CONTENTS & COMMENT AUGUST 2016 ISSUE 3 REGIONAL FOCUS ON SCOTLAND INSIDE THE NEWS 5 The new normal: how the postBrexit wine-buying landscape may shift

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23 Local: Erin Smith on how local British products are booming

SPOTLIGHT 26

Conflicting signals are emerging as to how the changing economy might affect the trade

Small operators: Andrew Catchpole on how niche operators compete with their bigger rivals

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How wholesaling can complement smaller retailers

Steevenson Wines: Angela Mount meets the family behind an expanding business

LET LOOSE IN LANGUEDOC

DATA & INSIGHT 8 New research from Crown Cellars shows many ways the on-trade can boost sales

REGIONAL FOCUS 10 Edinburgh roadshow: lively debate as Scottish movers and shakers gather

SCOTCH

LIAM STEEVENSON

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ON-TRADE INSIGHTS

Regional heroes: round up of the best wholesalers in Scotland

32 Fine dining: Jo Gilbert seeks the key to unlocking independent fine dining

FEATURES 18

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The Languedoc: Wine buyers report back on their trip to this French wine region

FINE DINING

20 Scotch: Tom Bruce-Gardyne reports on exciting trends in Scotland’s greatest export

Prospectors’ Corner: newbies and willbies on the UK restaurant and bar scene

DOING BUSINESS 30

BREXIT

How do importers and agents choose their perfect Boo wholesaling partners? ze p are goin rices Erin Smith finds out

g up

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COMMENT

PROMOTING QUALITY

A LITTLE OF WHAT THEY LIKE Welcome to our autumn issue of Drinks Wholesaler, which is packed with the usual medley of analysis, insights, viewpoints and features, plus original research into the wine market, commissioned and shared by Crown Cellars, appearing for the first time here.

As I write the country is still jubilant over the UK’s impressive collective Olympic performance, which has surely sent out a wholly positive message to the world that this eccentric island can still play at the highest level, regardless of its diminutive size.

Similarly, both public and business confidence appear to have rebounded following the Brexit vote, although economists and commentators still appear divided as to what fallout there will be over the coming months.

One of the biggest factors, and currently the looming issue affecting any in the drinks trade that import from almost anywhere in the world, is the depreciation of sterling. We look at this in depth and what it might mean for those businesses, as well as where in the world the trade is now likely to look to source more affordable wines, spirits and beers.

In turn, the need for the trade to be as efficient and engaging as possible has become ever more critical. Which is where that The Future of Wine in the On-Trade report from Crown Cellars comes into sharp relief.

With various highlights and insights reported on pages 8 and 9, the report reveals much about perceptions and misconceptions held by the trade, also focusing on the major differences between the buying and consumption habits of millennials when compared with the rest of the population.

One of the most striking issues relates to Chardonnay. It is a variety that has never, of course, been away. But so far has it fallen from apparent fashion that many on-trade outlets don’t offer any Chardonnay at all. However, left to their own devices in the off-trade, 20% of UK drinkers choose Chardonnay as their tipple of choice.

Conversely, Malbec looks a runaway bestseller on almost every list up and down the land. But Malbec is a popular choice for only 10% of the nation’s red

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Drinks Wholesaler’s Edinburgh roadshow threw up many talking points

drinkers, still outstripped in popularity by the likes of Cabernet, Shiraz and Merlot.

The point is surely that we as a trade should be offering the public what they want, when they want and in the way they want, rather than either decrying their taste in Prosecco or trying to second guess what’s best for them based on anecdote and hearsay. Especially in these uncertain times.

Andrew Catchpole, Editor Follow us on Twitter @DrinksWholesale

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FOCUS & ANALYSIS

THE NEW NORMAL THE POST-BREXIT WINE-BUYING LANDSCAPE MAY START TO SHIFT AS WHOLESALERS ADJUST TO FLUCTUATING CURRENCIES. ERIN SMITH INVESTIGATES Following the referendum vote to leave the European Union, sterling took a dramatic turn and lost value overnight.

It has yet to recover against other currencies, including the euro, which has put the squeeze on suppliers and wholesalers who, despite having planned for some short-term fluctuations, are ultimately going to have to raise prices.

Many suppliers have already begun these conversations and, come the autumn tastings, most are anticipating an up in listing prices. For example, Les Caves de Pyrene recently informed its customers that it would be adding an additional 3% currency surcharge to its wines, effective Monday September 19.

“We have made every effort to avoid the need to take such measures and have delayed this decision as long as possible in the hope that the pound would begin to strengthen,” said Amy Morgan, director.

“However, the continued decline of the pound against all major international currencies has made it essential for us to take action.”

The pound to euro exchange rate dropped from £1 to €1.378 in August 2015 to €1.157 (August 17, 2015-2016, xe.com).

The 16.02% drop is putting pressure on wholesalers to either raise prices or look

THE DRINKS WHOLESALER firstname.lastname@agilemedia.co.uk EDITORIAL Editor Andrew Catchpole 01293 590055 Contributors Erin Smith, Jo Gilbert, Jaq Bayles, Angela Mount, Tom Bruce-Gardyne DESIGN Group Art Editor Acting Art Editor Christine Freeman Peter May Designer James Down

to New World wine regions. However, areas where suppliers are able to look for New World wines to import is becoming increasingly limited.

Australian wines have become significantly more expensive. The exchange rate is currently 20.11% lower than a year ago. Overnight the pound lost 6.7% against the Australian dollar, dropping from AUS$1.962 to A$1.83017 (June 23, 2016-June 24 2016, xe.com). It did rebound but slid to a low on July 9 of AUS$1.711. It has since rebounded slightly, but the Australian dollar will most likely put pressure on suppliers for the coming months.

Nik Darlington of Red Squirrel Wine said this could be tough for premium Australian producers. “Premium Australian wine was just on the cusp of reawakening – this is a big hit. My hope is that enough people have had a snapshot of just how good premium Australia is and they will still give it a go.”

Wines from the US may face the same challenge moving forward. The Global Market Update report for August from global wine brokerage firm Ciatti warned: “US bottled exporters need to keep an eye on the strength of the US dollar and ensure they’re not becoming uncompetitive on price in foreign markets.” The GBP/USD exchange rate is currently down 17.15% from a year ago.

There may be opportunities with Argentina and South Africa where the exchange rate dip was lower. Due to a major correction last year Argentina’s peso is still up comparatively and the rand is one of the less severe fallouts.

ADVERTISING & SALES Publisher Lee Sharkey 01293 558136 Commercial Director Samantha Halliday 01293 590053 Senior Account Manager Stuart Sadler 01293 590054 Account Manager Erica Stuart 01293 558132 Account Executive Marc Lanaway 01293 558137

EVENTS MANAGER Sarah Burnett 01293590049 ACCOUNTS Annette O’Connell 01293 590051 Carol Cureton 01293 590045 AD PRODUCTION CC Media Group Kevin Porter 0207 216 6449 Mark Crinnion 0207 216 6407 MANAGING DIRECTOR Russell Dodd

SUBSCRIPTION The Drinks Wholesaler is available on annual subscription at the following rate (UK) £24 for 4 quarterly issues ENQUIRIES Email: Lee.sharkey@agilemedia.co.uk Address: Agile Media Ltd, Longley House, International Drive, Southgate Avenue, Crawley, West Sussex RH10 6AQ Drinks Wholesaler is published by Agile Media Ltd All rights reserved Printed by Stephens & George COVER IMAGE: MAXOIDOS/ISTOCK/THINKSTOCK

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COSTING BREXIT ANDREW CATCHPOLE The vote on Brexit has been in for a while but the potential effects on the trade – and the country as a whole – remain to be counted with conflicting signals emerging from various sectors of the economy.

Among these early indicators, though, the most recent figures from the Office for National Statistics (ONS) revealed that total retail sales grew by 5.9% across July compared with the same month last year.

This suggests consumer confidence has rebounded post vote, with further hope that measures by the Bank of England, coupled with a return of political stability, is at least mitigating some of the danger signs of recession.

The biggest short to medium-term impact on the drinks trade, of course (for those that trade mainly in imported drinks), is the higher cost of buying from either Europe or New World Countries, as our analysis on page 5 shows. And, as hedged currency reserves begin to deplete, some of those businesses are already beginning to feed price increases through.

“We bought some currency forward but in hindsight not enough – a consequence of the unlikelihood of a leave vote and the poor exchange rates in the quarter preceding the vote,” said Hal Wilson, managing director, Cambridge Wine Merchants.

“Increases in cost of virtually all imported wines necessitates a new wholesale pricing with increases of about 3.5%, effective September.”

Cambridge’s modest increases are in line

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IT DOESN’T TAKE A CRYSTAL BALL TO SEE THAT THE WEAKENED POUND WILL HAVE AN EFFECT WHEN PRICES ARE BEING SET NEXT YEAR

with others, such as Caves de Pyrene, which has also announced a ‘currency surcharge’ of 3%, also effective September.

Some, such as Conviviality, are better placed to weather the depression of sterling, with the company stating that its currencies are hedged up until March 2017.

However, a spokesperson for Conviviality went on to say: “The biggest impact on our product costs will be in wine, but this is a category where we exert significant control over what we sell to our customers, meaning we can shift product mix towards New World wines to manage the relative cost increase in Old World.”

As Giles Cooke, wine development director at Alliance Wines, points out: “It doesn’t take a crystal ball to see that the weakened pound will have an effect when prices are being set next year.

“With the pound having fallen from a one-year high of €1.44 euros to €1.15, US$1.70 to US$1.29 and AUS$2.20 to AUS$1.70, there will be some sharp increases next year,” he continued.

“This may be compounded by weaker harvests in South America this year, though that is still to play out fully.”

While businesses are overwhelmingly taking a pragmatic approach – “we’re all in the same Boo boat,” said ze p are r i c goin es Wilson” – the g up difficulty

the trade faces in pushing through any price increases to its accounts is causing concern.

“Most restaurant and pub owners have little understanding of exchange rates and so will not take kindly to any threats of price increase,” says Ted Sandbach, managing director, Oxford Wine Company.

“We will hold all prices until April and we have seen the Budget and had supplier increases. I believe things may get difficult but we will not know for a while. Only when holidays have been paid for and school fees settled will we see the real picture.”

DRINKS ROADSHOW MANCHESTER

Drinks Wholesaler is returning to Manchester for its second north west Roadshow at Salut Wines on Tuesday, September 27, following the popular event in the city last year.

With a wealth of great wine, spirits and craft beer suppliers lining up a walkabout tasting focused on drinks for the independently minded trade, there will be much to sample and discover.

In addition, a Craft Beer Masterclass hosted by Zak Avery of Beer Paradise, plus a workshop hosted by editor Andrew Catchpole examining the contentious topic of how best to protect business and prevent poaching of accounts, will add to what should be a very engaging afternoon.

For more information on the Drinks Roadshow Manchester please contact: andrew.catchpole@ agilemedia.co.uk

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NEWS

INSIDE THE NEWS

BUILDING BUSINESS ANDREW CATCHPOLE For smaller retailers, wholesaling can prove a complementary and lucrative extra stream of revenue for their businesses, so long as certain challenges and realistic expectations are factored in.

This was the finding of a Wholesale Improvement: Developing Your Operation breakout focus group during a Building Your Business Workshop that formed a central part of the agenda at Drinks Wholesaler’s recent Think Indie, Drink Indie event in London.

Describing wholesaling as a good fit for businesses that already retail from a bricks and mortar premise, Matthew Hennings, managing director of Hennings Wines, said: “The businesses can complement each other very well.”

He advised, though, that there were certain key aspects of the operation that could trip up potential entrants to the sector.

The first centred on cash flow, essential for the health of all businesses but marking a transformation from the pay now of retail to the pay later of wholesaling to accounts.

Hennings advised: “When you start growing your business you need the retail cash flow to balance that investment.”

As a positive, though, growing a wholesale arm means bigger volumes and thus better purchasing power, plus other efficiencies to be made.

One of the key downfalls identified by the breakout group, comprising merchant-wholesalers and suppliers, was a misunderstanding of the margins required to take the business forward successfully.

“If you start out, as many do, at 15% margin, that’s not good enough, because at that level you can’t operate with all the bells and whistles,” said Hal Wilson, managing director of Cambridge Wine Merchants. “To operate as a full-service wholesaler, you need 20%-25% margin. It’s a pretty capital intensive operation.”

Elsewhere, debt collection and the need for a dedicated credit controller or similar, was cited as paramount to the successful running of a business.

BRAND OPPORTUNITIES ABOUND Following the slash in ranges from multiples, where do brands have opportunities?

Some brands have had it tough over the past 12-24 months following the culling of ranges within the multiple grocery sector. While many look to find new space on shelves, can wholesalers serve some of them?

David Visick, director of communications for the Federation of Wholesale Distributors, said: “The relationship between wholesaling and alcohol brands is stronger than it has ever been. I think most brands have considered wholesalers and, with more than 400,000 customers that we service across the UK, it is worth exploring.”

Visick particularly pointed out that the opportunity for

brands within the convenience sector is important to consider.

“Brands really have a home in the convenience channel. You will see own-label, but more and more brands are getting higher visibility.”

While brands may have an opportunity with wholesalers in convenience, some that have been victim of the recent range culls could find the on-trade and independent sectors more challenging.

Richard Jones, chairman of retailer and wholesaler SH Jones Wines, said: “The price of wines on a multiple’s shelves is often three to four times lower than in a restaurant, which will be tough. There are a few on-trade outlets these brands could work in, but I think the general view of most independent and

on-trade establishments is that they are looking for wines that are a little more obscure. Because wholesalers are looking for exclusivity, the bigger brands may not be able to get the volumes they had with multiples.”

Jones does say that there is still a role for both big brands and esoteric wines though, because customers look for reassurance and both brands and bespoke offerings can offer that.

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BOOSTING

WINE SALES necdotal ‘evidence’ of drinks buying trends and habits in the on-trade abound but, as anyone out there selling into the sector knows, hard empirical facts and data are very thin on the ground. Which is why Drinks Wholesaler has teamed up with Crown Cellars, the specialist wine-dedicated division of Carlsberg UK, to present some of the headline findings from the company’s recent and far reaching Future of On-Trade Wine report.

Surveying more than 1,000 wine consumers and 500 on-trade outlets, the report identifies two very different sets of consumer buying habits and approaches to wine, split along clear lines between millennials and the rest.

BIG OPPORTUNITIES

A BIT OF BASIC HOUSEKEEPING CAN REALLY DELIVER IN HELPING ON-TRADE BUSINESSES BOOST WINE SALES AND REACH MILLENNIALS. ANDREW CATCHPOLE LOOKS INTO RECENT RESEARCH BY CROWN CELLARS

Over the past few years, categories such as craft beer, which is growing at 35% in value YoY and spirits, which is growing at 6% in value (with premium spirits growing at 19% value) YoY have done an excellent job of enlightening this group, encouraging them to explore and diversify.

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TWICE AS MANY MILLENNIALS AS OVER 30S THINK A DESCRIPTION – FOR EXAMPLE LIGHT, FRESH, FULLBODIED AND ‘GOOD WITH’ – IS THE MOST IMPORTANT FACTOR WHEN INFLUENCING THEIR CHOICE OF WINE.

And, with a £2.4bn on-trade wine market to play for, far and away outstripping craft beers and artisanal spirits –- notwithstanding the fashionable emphasis put on selling those categories by pubs, bars and restaurants – the findings strongly suggest that, with a few basic improvements, the wine offer can deliver far greater returns.

Moreover, as Kevin Paterson, marketing manager for wines, spirits and soft drinks at Crown Cellars reveals, this can be achieved as a top-up to other category sales. It’s all about presentation and helping accounts with their ranging.

“What the research shows is that it doesn’t take a lot. A few basics can really revolutionise your business and increase engagement,” says Paterson. And this can be done without cannibalising other sales, so it’s all new profit for the business.

The first thing that delivers a big uplift, whether a wet-led pub or quality food outlet, is a wine list, which can make up to 40% difference to sales.”

Among the simple facts that the report

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DATA & INSIGHT highlights are the most popular grape varieties, with Chardonnay leading the pack – “still the number one performing variety, and by a country mile”.

Paterson says: “The information on what the most popular red and white varieties are isn’t readily available and, while Malbec may be a fantastic up-and-coming wine, if you have a short list and only 10% of your customers want Malbec, then maybe you should be looking at listing the most popular varieties first.”

The advice is to first focus on the top six to eight grape varieties and then start adding fashionable – but ultimately still niche – Picpoul and the rest.

Not listing Chardonnay because it is somehow seen as less fashionable is to deny the 20% of potential customers for whom this is still first choice of tipple when purchasing to drink at home.

REACHING MILLENNIALS Off the back of previous research into millennials and their engagement with beer versus wine, the findings of this latest report suggest that, while millennials are confident when it comes to discussing and ordering unknown craft beers, in stark contrast a fear factor still remains with wine. This may be well known but the solutions, suggest the Crown Cellars research, are not complicated.

Wine needs to be treated in much the same way in terms of visibility, prominent menus, flagging up on chalk boards, back bar displays and so on. Given that the current trend is confirmed that people are going out less but spending more when they do, looking for quality over quantity, the trade needs to focus more on giving customers a reason and clear option to trade up.

Older customers – people who typically have more disposable income – conversely tend to represent a demographic that likes to trust its tastebuds. An opportunity to try before you buy – enhanced by the ease of Stelvin closures and a willingness to allow sampling – is again another simple way of engaging and increasing sales.

ENLIGHTENING MILLENNIALS This can be achieved through use of the right tone and language to engage this audience and use of inspiring, clear descriptors which they can relate to.

• The trade has embraced craft beer and spirits and contributed to their success, propelling them into the spotlight through impactful display and use of menu descriptors.

• Millennials need to be told more overtly what wine is like and how to drink it when compared to over 30s.

• This is not currently happening in the majority of trade outlets and therefore millennials are being discouraged from exploring the wine category and diversifying their palates.

• Although the least price-sensitive group, millennials are twice as likely to navigate a wine list by price and this is due to a lack of understanding of the choice available.

• They are often prepared to pay more to impress and would do so if advice was available.

Sources: CGA On Premise Measurement MAT to 05.09.2015 CGA brand index 31.10.2015, kindly shared by Diage

Frequency of visits are in decline but wet spend per occasion is £13.31, rising at 1.9% YoY, helping to drive value into the on-trade.

TAKING STOCK 39% of customers feel that their wine is not served cold enough.

Wine awards are underutilised in the on-trade. Medals are a key influencer of decisions in the off-trade and this can easily be replicated in the on-trade by highlighting medals on the menu or on chalk boards.

A clear wine list with simple descriptors and staff training are essential to drive wine sales.

Customers want to see a good range of popular grapes.

WINE IS CURRENTLY WORTH £4.2BN AS A CATEGORY AND IS GROWING IN VALUE AT 4.6% YOY, REPRESENTING 18% VALUE SHARE OF THE ON-TRADE (ACROSS BEER, WINE AND SPIRITS).

CGA ON-PREMISE MEASUREMENT MAT TO 28.11.2015

AN EVOLVING MARKET • THERE ARE MORE ON-TRADE WINE OCCASIONS WEEKLY THAN SPIRITS OCCASIONS AND THIS IS GROWING YEAR ON YEAR1 • PREMIUMISATION IS DRIVING OVERALL GROWTH IN ALCOHOL CATEGORIES WITH PREMIUM SPIRITS +26% YOY, CHAMPAGNE +12.5% AND PREMIUM WORLD BEER +7.5%2 • THE RISING FEMALE INFLUENCE IN THE ON-TRADE IS DRIVING OVERALL GROWTH IN WEEKLY VISITS, WITH MORE WOMEN VISITING THE ON-TRADE THAN FIVE YEARS AGO3 • WOMEN ACCOUNT FOR 57.4% OF TOTAL STILL WINE CONSUMED IN THE UK, WHICH RISES TO 65.4% OF WINE CONSUMED IN THE ON-TRADE4 • WEEKENDS ARE BECOMING INCREASINGLY IMPORTANT TO THE ON-TRADE, AS PEOPLE ARE TAKING THE OPPORTUNITY TO TREAT THEMSELVES5 SOURCES: 1KANTAR WORLDPANEL ALCOVISION 7-DAY PENETRATION BY ON-TRADE OCCASION. 2CGA TOTAL ON-TRADE MAT 31.10.2015, KINDLY

SHARED BY DIAGEO. 3KANTAR WORLDPANEL ALCOVISION 7-DAY PENETRATION BY ON-TRADE DEMOGRAPHIC. 4KANTAR WORLDPANEL ALCOVISION SERVES BY TOTAL TRADE AND ON-TRADE JUNE 30, 2015 KINDLY 5

SHARED BY CYT. KANTAR WORLDPANEL ALCOVISION SPEND PER OCCASION

Price as a navigation tool can be dangerous, with 22% of millennials saying they normally go for the second cheapest option if they are unsure of what to order.

41% of wet-led pubs still don’t offer a wine list.

61% of the trade thinks that wine quality has got better in recent years compared to just 35% of customers.

VECTORSTORY/ISTOCK/THINKSTOCK

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TAPPING INTO CRAFT DURING OUR EDINBURGH DRINKS ROADSHOW AT CHECKPOINT, SCOTTISH TRADE MOVERS AND SHAKERS GATHERED WITH ANDREW CATCHPOLE TO TALK SHOP. TOM BRUCE-GARDYNE LISTENED IN

he repercussions of the EU referendum, which took place less than a week before, looked set to dominate the debate. While the dust had barely settled from the political fallout, the pound had already slumped against major currencies, promising yet more grief for an embattled wine trade. UK sales are flat at best, and only buoyed up by a few billion bubbles of Prosecco, as Catchpole pointed out in his introduction. However, the talk that followed was less about Brexit and more about how wine could tap into craft credentials.

Checkpoint is the sort of modern, urban space where craft beers and artisanal spirits do well, and where wine needs to rise to the challenge of engaging millenials.

Crafty practice “Beer used to be everyday while wine was special.

Now it’s the other way round,” commented Andrew Lundy, managing director of the three-strong Edinburgh retail chain Vino Wines. If true, “we ain’t seen nothing yet”, promised a gleeful Jamie Delap, managing director of Fyne Ales in Argyll, who claimed: “The explosion of different styles and qualities of beer has only just started, and it will be hard to imagine what it will be like in five years’ time.” He went on to say: “Part of the attraction of craft beer is not just what’s in the glass, but the whole story around it that people can identify with. By contrast, wine can seem impenetrable and confusing. There’s a huge mass of information and I get the sense that bar staff are still somewhat daunted by it and not confident selling it.”

Billy Bell, managing director of Wine Importers Scotland, countered that craft beer is not entirely immune from confusion either. “I recently saw a label for Marmalade Ale with Dundee Cake,

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Drinks Wholesaler would like to thank all at Checkpoint for hosting our event.

CHECKPOINT 3 Bristo Place, Edinburgh EH1 1EY checkpointedinburgh.com

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EDINBURGH DEBATE

SCOTLAND

whatever that is,” he said, adding that, although wine needs to do more to recruit new drinkers: “We shouldn’t forget there’s a sizeable grey market for wine among middle-class drinkers of a certain age with a bit of disposable income.” Jeremy Gwyn Williams of Cellar Vino, pointed out: “You’ve got a proportion of the young who don’t drink at all. My son is 21 and he drinks, but he’s the exception.”

Scottish issues In Lundy’s view the prospect of leaving university burdened with debt was clearly having a sobering effect on today’s students, although if you are Scottish and studying in Scotland you escape tuition fees. Other Scottish laws have had a negative effect on trade compared to the rest of the UK. Ian Cumming, Inverarity Morton’s commercial director, mentioned the impact of Scotland’s lower drink-drive limit that was introduced in December 2014. “I think there’s an element of projected fear with people thinking they can’t go out because they’re driving the next day,” he said. “As a trade we need to think about how we respond to that.”

Within the off-trade, Bell spoke of what he called “the inequality between supermarkets and the independents,” with the latter “punished for the problems of cheap booze stemming from the multiples. In Scotland you can’t promote a bottle of wine beside a ham in a deli in case there are echoes in the supermarket.” Lundy added that he is banned from putting a sandwich board on the pavement, while Tesco can happily advertise its wine offers on the bus stop across the street.

“So, it’s not exactly the land of milk and honey up here,” Bell concluded.

Less is more “We are in a market where everyone’s drinking a little bit less, but hopefully what they’re drinking is a little bit more interesting,” said Rodney Doig of Wood Winters. “We do quite a lot with organic and sustainable wine, but the price has to reflect that. We need to spread the message that sustainability also means being economically sustainable right through the supply chain to the grape grower.” Gwyn Williams was despondent about the trade’s attitude to pricing when it came to the one wine enjoying a boom right now. “Most people won’t accept price rises on Prosecco, so there’s a race to the bottom,” he said. “We should be selling high-quality Prosecco instead of growing volume by slashing value.”

The generic nature of the Italian sparkler, like a lot of wine, aroused debate. “I feel it comes down to the strength of the brands,” said Gwyn Williams. “People relate to and recognise their gins or craft beers, whereas with wine it just comes down to grape varieties.” For Jamie Delap: “One of the big differences, it seems to me, is that with wine all the communication happens at the point of sale, whereas craft beer and craft spirits came of age in the era of social media. At Fyne

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Ales there’s a daily conversation, and a real depth to it.” But then beer and spirits are heavily branded, unlike wine, which, according to Cumming, “has the least sophisticated form of marketing in the trade”.

winemaker’s dog.” Tynan agreed, saying: “Wine is so full of stories, but we don’t have the means to communicate them.”

Marketing focus Alliance Wines chief executive Fergal Tynan MW said: “Beer is all about consumer marketing, while wine has always been aimed at the trade. It is stuck with small budgets and no brands, so it’s operating in a very constrained space. But there are intrinsic factors to each category. We can learn some lessons from the success of craft beer and spirits, but it’s dangerous to mess them up. Wine has evolved over thousands of years and it’s got a very special history.” Unfortunately the category has accumulated plenty of baggage along the way, not all of it helpful. Speaking after the event, Kirsty Dunsmore of the Edinburgh Beer Factory and its Paolozzi lager, felt: “Wine is still seen as a bit prim and proper, while craft beer’s a bit more relaxed.

It’s a category where ‘premium’ doesn’t need to be formal.”

That is a message still lost on parts of the on-trade which persist in scaring their clientele with dusty, overblown wine lists. On this point, Tynan has no doubt that less is often more. “It’s proven that you can significantly increase gross profit by reducing the number of wines on a list,” he said. But in Doig’s view way too many singlepage lists are uninspiring. “Six reds, six whites, two rosés and six by the glass … I could do it with my eyes shut,” he said. “The same old Pinot Grigio, Sauvignon and Chardonnay, but with a different name at the top. It’s our job to steer the customer and push the envelope a little, otherwise the envelope will start to look boring.

It’s also about being distinctive and having personal stories that make wine more akin to locally-sourced food and craft beer.

“What I want to know is the name of the

Telling tales When it comes to being local, the neighbourhood microbrewery or craft distillery clearly has the edge. “People are very into provenance,” said Delap. “With a wine they might be told it comes from the most beautiful valley in France, but there’s a sense of distance.” Bell made that perennial plea of restaurant suppliers by saying: “It would be really good if some on-trade operators would think about their percentage margin for a month and decide to take a cash margin instead.” Gwyn Williams nodded vigorously, saying: “I couldn’t agree more. Demanding 70% was once something only the top London hotels did, now it’s the norm.” With tax and margin taking such an enormous slice of the list price, he doubted whether many house wines or wines by the glass have real stories to tell.

On wines by the glass, Bell said: “So much more could be done in having better preservation systems to allow higher quality wines to be open for a month.” The alternative of having the interesting stuff only available by the bottle was a missed opportunity, and in Williams’ eyes: “A 75cl bottle is a big amount of alcohol compared to beer and spirits where a smaller serve is a huge advantage.” However, Dunsmore believed the idea of sharing a bottle of wine over dinner was still pretty entrenched. Craft beer may be encroaching on the fringes of traditional wine territory in the on-trade, but a full-scale invasion is some way off.

IT’S PROVEN THAT YOU CAN SIGNIFICANTLY INCREASE GROSS PROFIT BY REDUCING THE NUMBER OF WINES ON A LIST

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SCOTLAND

EDINBURGH TRADE

THE WORD FROM SCOTLAND nverarity Morton now lists more than 2,000 wines, WM Morton having merged with Inverarity Vaults in 2011 and acquired Forth Wines in 2013. Cutting that back might help logistics, but commercial director Ian Cumming claimed such a spread is crucial given the number of neighbouring accounts it supplies. For instance, virtually every restaurant on Edinburgh’s George Street buys from Inverarity, and all of them require a Pinot Grigio of their own.

Cumming explained that he was keen to be part of the Drinks Roadshow because: “Edinburgh’s quite a vibrant place at the moment. We want to be at the premium end of the trade rather than the ‘stack it high, sell it cheap’ end. Our job is about increasing people’s product knowledge and level of engagement, and to move them on from just thinking ‘how can we make 50p more on that bottle of Smirnoff?’.”

Among the wines for tasting were three from Woodstock in the McLaren Vale, which signed up with Inverarity in Scotland 18 months ago. “We’ve

WITH A BUSY DRINKS ROADSHOW BUZZING AWAY IN THE BACKGROUND, TOM BRUCE-GARDYNE CAUGHT UP WITH EXHIBITORS AT OUR EDINBURGH EVENT

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TODAY’S YOUNG GROWERS ARE SERIOUS ABOUT THE WINES’ POTENTIAL, AND HAVE REALLY UPPED THE QUALITY LADDER

been in and out of the UK a few times given the exchange rate,” said Woodstock export manager Simon Spier, who sounds halfway contented with the market right now. “You always hope for the stars, but if you reach the clouds that’s OK.” While Inverarity Morton has embraced the grain, to the extent of listing no fewer than 140 gins, Alliance Wine has stuck firmly with the grape. “We have 1,000 wines from 19 countries,” said sales director Miriam Spiers. “As a company we focus on small producers and we’re very on-trade driven.” Alliance supplies selected indie merchants, “but we know restaurants don’t like their wines being around too much, so we try to respect that”, she said. Accounts are serviced direct in Scotland and London and via wholesalers elsewhere.

OLYMPIC SIGHTS “For more than half our restaurant customers we do the full list,” said Spiers, who believes “wine lists are an absolute key driver in the on-trade.” How to structure them, what price points and grape varieties to cover, how much information to impart, and how to subtly nudge diners away from ‘safe options’ is an art form. If it were an Olympic sport, Alliance would be on the podium.

Sadly the thorny issue of restaurant mark-ups is still unresolved. Despite the firm’s case studies to prove how cash margins encourage trading up and consequently boost a venue’s GP, resistance remains rock solid among most restaurateurs.

A very different operation is Les Grands Chais de

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YOU ALWAYS HOPE FOR THE STARS, BUT IF YOU REACH THE CLOUDS THAT’S OK

France – an independent family-run business that owns almost 40 properties across the country with 1,512ha of vineyards. For the Drinks Roadshow 15 wines were picked from its 700-strong GCF Exclusif portfolio that is aimed specifically at the on-trade.

“We work with eight or nine wholesalers in Scotland, including Wine Importers and Inverarity Morton,” said sales director Chris Davies, who looks after the UK on-trade and independents.

While the latter can ship direct if they are big enough, he said his main focus was to help existing wholesalers find more

customers. Among the bottles for tasting in Edinburgh were entry-level – house wines such as Les Vignerons and Parlez Vous, priced around £3.60dpd, and a Muscadet – an appellation due for a come-back, reckoned Davies. Its old cheap, EU-subsidised image is, or should be, “completely behind us” he said.

“Today’s young growers are serious about the wines’ potential, and have really upped the quality ladder.” Among reds, he had high hopes for a pure Petit Verdot from Domaine Mas Belles Eaux – a 75ha property recently bought from Axa Millésimes.

SCOTS IDENTITY On a nearby table Wine Importers was representing Torres, one of the firm’s core agencies north of the border alongside the likes of Bouchard, William Fèvre and Chapoutier. The Scots may have rejected independence in 2014, but “Scotland is very much a separate market and just like Ireland really”, said Wine Importers managing director Billy Bell. “Our wines tend to be well known and have a reputation,” he added. “I’ve lived through a number of recessions and have seen that people don’t like to gamble. They might pay an extra £1 a bottle for that added sense of security.” That said, Wine Importers does list some

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SCOTLAND

GIN MASTERCLASS more unusual producers, such as Stobi from Macedonia, which produces an oak-aged red that could easily pass for a good Bordeaux, according to Bell.

With Torres, one notable success due to Scotland’s lower drink-drive limit introduced 18 months ago, has been the non-alcoholic Nateo range. “The first year I think we sold 40 boxes, but after the law changed it jumped to 400,” said Bell.

The surge of craft beer and what it might be doing to wine sales certainly featured in the debate, but Manchester-based Morgenrot takes a relaxed view, saying: “We gladly apply the term ‘craft’ to our beer and wines.” With beer brands such as Krombacher, Alhambra and Quilmes, the split with wine is “about 60 : 40”, said Mat O’Connell, key account manager, north. “Businesses around Manchester we supply direct. Elsewhere it’s via

small, local wholesalers. In the past we dabbled with real ale, but decided to stick with continental lagers in the main.”

GIN craze The current gin craze arguably began in Scotland with Hendrick’s, distilled in Girvan since 2000. In its wake has come a surge of boutique gins, six of which were there to taste, including Edinburgh Gin, distributed by Ian Macleod I’VE LIVED THROUGH A NUMBER OF RECESSIONS AND HAVE SEEN THAT PEOPLE DON’T LIKE TO GAMBLE.

Distillers alongside its malt whiskies – Glengoyne, Tamdhu and Smokehead. The gin was created by Alex Nicol and since 2014 has been distilled in a pair of pot stills in the basement of the city’s Rutland Hotel. After

5pm the distillery turns into a gin-fuelled cocktail bar.

The Glasgow Distillery Company launched its first brand, Makar gin, in late 2014 and for co-founder Mike Hayward, the spirit’s metropolitan roots really matter. “Gin does have an urban vibe if you look at other cities,” he said. “Just think how many distilleries there are in London.

I don’t think it’s saturated yet, though potentially there will be a consolidation at some point.”

A single malt whisky is planned, with spirit first filled into casks in March 2015. “It’ll come out when it’s ready,” said Hayward.

“Luckily we’re not driven by the bank manager.”

There is nothing remotely urban about Strathearn, near the village of Methven in Perthshire. This boutique operation has won awards for its Oaked Highland gin and for its young distillery manager,

GIN GENIE

“We need to be able GIN FOUNDRY’S OLIVIER is grown. Terroir is not WARD PRESENTED to articulate flavour, just limited to wine, but A FASCINATING and there are 10,000 to gin and juniper too.

BOTANICALS possible botanicals.

MASTERCLASS AT The history of these The Aroma Wheel OUR EDINBURGH botanicals is, to a “We took the ROADSHOW, GIVING degree, the history top-selling 150 gins INSIGHT INTO HOW TO of the East India and deconstructed Company, with exotic BEST COMMUNICATE their flavour profiles, THE FLAVOUR ingredients like identifying notes from grains of paradise and PROFILES OF GIN TO orange to mango then CUSTOMERS. ANDREW into peach and then eastern spices from CATCHPOLE SAMPLED the coasts where herby and oily and they traded. And now HIS ADVICE resinous character and people are finding started creating this new, weird and tool, the Gin Aroma wonderful botanicals to create new Wheel, a wheel of botanicals. gins, to create interest.

“Most people don’t click their “But this is nothing new at all fingers and go ‘snap, it’s oris’ – they because it has been going on for will go ‘spice’, or ‘citrus’, then know it 500 years. Of course the main star will be lime or lemon peel as opposed of the show is juniper and the to mango or orange. Understanding majority comes from Macedonia or what something tastes like, as Tuscany. There are huge differences opposed to what it tastes of, is a key in varieties of juniper, not just literal difference and much more useful in differences, but also down to where it terms of understanding what is in a

Zak Shenfield. From its two tiny stills an array of small batch spirits are produced, including Uige Beatha, Citrus gin and Strathearn Black Spirit.

Meanwhile, Aberdeen opened its first distillery for 100 years in a joint venture by two of the city’s top cocktail bars – Orchid and Bar 99. Its Porter’s gin flowed off the still just before Christmas.

Finally, two craft gin distillers from south of the border joined the Edinburgh event. Masons Yorkshire gin, set up by husband and wife team Karl and Cathy Mason, is now in its third year. As well as a Lavender & Tea edition gin, the pair’s latest release is Masons Yorkshire vodka.

Over in the Sunderland seaside resort of Roker, you will find the Poetic License Distillery with its range of three gins, including a barrel-aged Old Tom gin and its light, juniper-forward Picnic gin.

gin and what the flavour profile is.

“For most people a really ‘ginny’ gin – a juniper-heavy gin – is almost resinous, but you can also create and/or enhance the juniper character of a gin with other botanicals. If you are looking for something really juniper-forward, look for something with rosemary in it and the combination of juniper and rosemary will bring the juniper to the fore.

“If you are looking for something more resinous, more piney, more citrus, asking where a gin is from, or where a botanical is from, gives you something to articulate the style or flavour that botanical will deliver. We have to find other ways of telling people what this is, of evoking sensation, finding a vocabulary that articulates what people understand.

“With G&T, the tonic used is very important.

If a gin is particularly intense, then think about a different ratio of serve – not 3:1, but maybe 2:1 – and customers may have a better experience. Think about the botanical intensity and ask ‘is one botanical strong, do I need to smooth out that botanical, or bring out the others?’

“So that’s quite a complicated one, if you put tonic in, would it kill those complex notes, or can you use a tonic to bring them out?”

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REGIONAL HEROES: SCOTLAND

SCOTLAND SERVICE IN OUR AUGUST ISSUE WE ARE SHINNING A LIGHT ON SOME OF THE LEADING SCOTTISH REGIONAL OPERATORS.

(accounts): Other independently owned operators who value locality and the difference offered by us.

VINO vinowines.co.uk Contact name & job title: Andrew Lundy, managing director Split – wholesale vs rest of business: 15% wholesale, 85% rest of business.

Regional reach: Scotland for wholesale, national for web orders.

Specialisms and strengths: Bespoke and personal service to fit customers’ businesses, same day delivery in Edinburgh and small drops with no case quantity limits to help with an expanded range of great products.

Key areas of growth (drinks): Wine and sparkling wine.

Key areas of growth

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WINE IMPORTERS wine-importersnet Contact name & job title: Billy Bell Birse-Stewart, managing director Split – wholesale vs rest of business: 80% wholesale, 20% agency supply to independents.

Regional reach: All of Scotland, central areas to Aberdeen/borders with own vehicles.

Specialisms and strengths: Famous wines such as Torres, Graham’s, Antinori, Masi, Bouchard, William Fèvre and Chapoutier.

Our craft beer focus is on

interesting quality with Fyne Ales, 6° North and Old Worthy. We offer Schott Zwiesel glassware and Liebherr wine cabinets.

Wine list free printing service to all customers.

Next-day delivery to most areas and free split cases, with a low minimum order of three cases.

Key areas of growth (drinks): Growing demand in Prosecco.

Value house wines have been expanded to meet a growing demand for something different. Craft beer interest is a large part of business with regular special brews being released.

Key areas of growth (accounts): We focus on service, reliability and continuity of supply from our £1m+plus centrally held stock. Therefore our growth tends to be customers who have been let down by a general wholesaler. We can service from the largest to the smallest account, from Michelin to pop-up cafes, anywhere in Scotland.

ALLIANCE WINE alliancewine.com Contact name & job title: Miriam Spiers, sales director Split –- wholesale vs rest of business: In Scotland, supply is direct to independent on-trade businesses such as restaurants, bars and licenced premises.

Outside Scotland, supply is through wholesalers.

Regional reach: All of Scotland, with delivery five days a week (six during peak periods such as Christmas) and bonded warehouses are in Beith.

Specialisms and strengths: Focus on quirky, different wines with great value.

Independently and privately owned, working with small independent producers from all over the world. Range stretches from quality

entry level to highlevel wines, including organic, biodynamic and sulphur-free.

Key areas of growth (drinks): Prosecco, Cava, Vinho Verde, Sauvignon, Spanish Macabeo and Tempranillo, Rioja.

Key areas of growth (accounts): Businesses that are evolving and changing their offering regularly are doing best in the current market. Small but interesting wine lists with a varied offering by the glass are leading the way.

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SCOTLAND

REGIONAL HEROS

VILLENEUVE WINES WOODWINTERS WINES & WHISKIES woodwinters.com Contact name: Rodney Doig Split – wholesale vs rest of business: 70% wholesale, 30% rest of business.

Regional reach: Scotland, UK-wide.

Specialisms and strengths: Wines, artisan and organic, fine wine and investment, whisky, spirits, craft beer. UK-wide and international delivery, single bottle sales.

Key areas of growth (drinks): Organic and biodynamic, small grower, craft gin and bar spirits.

Key areas of growth (accounts): Owner/ operator of single and multiple venues seeking to make their offering unique and profitable in action and not just in Excel.

villeneuvewines.com Contact name & job title: Alister H Rae, director Split – wholesale vs rest of business: 50% wholesale, 50% rest of business.

Regional reach: All UK mainland plus islands subject to transport arrangements.

Specialisms and strengths: Quality wines from individually chosen quality producers. Very strong on malt whisky, gin and craft beers.

Key areas of growth (drinks): Gin and craft ale.

Key areas of growth (accounts): Supplying quality restaurants and hotels.

GREAT GROG greatgrog.co.uk

Contact name & job title: Richard Meadows, director Split – wholesale vs

rest of business: 75% wholesale, 25% retail.

Regional reach: Scotland, mostly central belt but all over.

Specialisms and strengths: Unique wine range (500+), craft beers (200+) specialising in Scottish offerings.

Same-day delivery in Edinburgh, next day nationally. Split orders of beers/wines with minimum order of 12 mixed wines. Saturday delivery Edinburgh.

Bin-ends. Smiley and happy van drivers.

Key areas of growth (drinks): Spanish wines, Portugal and decent South African estate wines.

Key areas of growth (accounts): Small independent restaurants, cafes and hotels who give a damn about what they serve to their customers and are getting a little tired of mass-market, garbage wines.

HOTSAUCE DRINKS hotsauce-drinks.com

Contact name & job title: Gavin Dron, account manager Split – wholesale vs rest of business: 100% wholesale Regional reach: Whole of Scotland primarily, rest of UK covered.

Specialisms and strengths: We focus on supplying premium, high-end and rare spirits with an on-trade focus.

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INVERARITY MORTON inveraritymorton.com

Contact name & job title: Ian Cumming, commercial director Split – wholesale vs rest of business: 95% wholesale.

Regional reach: Scotland (mainland and islands), north of England, east and west Midlands, Wales, West Country.

Specialisms and strengths: Premium wines, house wines, draught and packaged beers and ciders, craft beer, premium and boutique spirits, next-day delivery, WSET staff training, wine-listing, design service.

Key areas of growth (drinks): Wine.

Key areas of growth (accounts): Prestige wine accounts.

GET IN TOUCH Do you believe you should you be appearing on these pages? Email: andrew.catchpole @agilemedia.co.uk

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SAMPLING THE LANGUEDOC THE GROUP Angelica Laricchiuta, Grape & Grain Christopher Topham-Smith, Nethergate Wines Natalia Posada Dickson, Perfect Cellar Spirits were high as our group left London, bound for Toulouse then on to Pezenas on the first leg of our buyers’ trip to the Languedoc. All three were familiar with the region’s wines, which already sell well in their respective portfolios, but the chance to see and taste their way through the prism of Grands Chais de France’s (GCF) impressive roster of estates in the region had whetted appetites.

The first visit was to Domaine de la Baume, an ex-Hardy’s owned winery that is thriving, also being, in many ways, one of the early beacons for the development of a quality focus in the region.

“In the late 1980s the Australian influence on aspects such as vinification techniques and night harvesting started to change the way producers made wine,” said Paul Bartkowiak, GCF’s man on the ground in the Languedoc.

A 2015 Cabernet Sauvignon and intense Terres Syrah/Cabernet 2013 blend highlighted the point, showing concentration coupled with freshness, prompting a conversation about the possibilities from the region.

“The variety in the Languedoc means you have wines for everyday drinking, varietal wines, but also lots of smaller, emerging regions, so the choice is really engaging,” suggested Christopher.

And, as GCFs Chris Davies, who was hosting the trip, pointed out, with Languedoc still responsible for 25% of France’s production, despite a halving of vineyard area over the past 50 years, the possibilities offered by this diversity provide rich hunting grounds for independent merchants.

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BUYERS’ TRIP Next stop was Mas de Belles Eaux, an historic estate in Pezenas recently acquired and revitalised

by GCF, where the area’s pending application to join the seven existing Cru Languedoc appellations sparked debate over this young quality tiering system.

“It’s a benefit for both customers that already buy French wines and those that are new, helping understanding that some areas have specific characteristics and can achieve a certain quality level,” said Natalia.

A particular hit here was a Petit Verdot which flagged up the concentration and intensity found across the wines tried.

The following day, after a night in Pezenas, including dining on Spanish food and French wines, where the bold Spanish flavours were well met by Languedoc wines, a morning visit to the cooperative St Jean de Minervois delivered all-round approval for the local Muscat from this premium appellation.

This was followed by one of the highlight visits, to Domaine de Tholomies in Minervois la Livinière, which owns 25ha (10%) of what Paul described as “probably the most in-demand appellation in the area”.

Winemaker Laurent Palancade took the group through a varied range of wines, from a crisply balanced Viognier/Chardonnay blend to the garrigue-scented flagship Domaine de Tholomies Syrah/Grenache blend, which clearly revealed the quality potential of this ‘commune within a commune’ Cru appellation.

That night over dinner in Carcassonne the debate continued over the emerging quality tiers and roll-out of the Cru system in the Languedoc, with the general thrust being that anything that helped flag up the ever-growing quality and diversity of the region is, overall, a good thing.

But care must be taken to ensure that the Crus are specific enough to guarantee the wines share clear common characteristics and that quality matches the increased prices that such an accolade will likely command.

What all agreed upon, however, is that the Languedoc remains a fertile and exciting hunting ground for both the merchants and their customers when it comes to sourcing wines of real character and expression, coupled with good value in the bottle. And the GCF estates visited clearly reinforced this impression.

THE BUYERS’ VIEWS The GCF trip, with many wines tasted across several appellations, generated much comment on both the variety and quality found in the Languedoc, leading to discussion on the positive attributes of the region and what aspects appeal to the customers.

Angelica Laricchiuta, Grape & Grain “The Languedoc is definitely good value and the wines often express themselves well in terms of quality. It’s interesting to see the wealth of appellations in this area and how the same grape varieties and blends of varieties can produce very different styles of wine across the region. And clearly the quality of the wine has gone up a lot compared with the past.

There is obviously a focus beyond producing table wines – [the producers] want to be able to compete with any other region in France.

“The wines we’ve seen have been showing well – they have the body and southern character you expect, but while still maintaining freshness and minerality. I’d usually recommend Languedoc wines for people having lamb, especially reds that have the garrigue character. And the Chardonnnay can be very good too.”

Christopher Topham-Smith, Nethergate Wines “The Languedoc region is something we can get excited about – it’s relatively easy to communicate and good quality. There are few surprises in Bordeaux or the Loire, but with the Languedoc we find a really engaging diversity.

“People don’t necessarily know the difference between various appellations – how Pays d’Oc differs from an AOC such as Minervois La Livinière – but with Merlot or Cabernet or Syrah people do effectively know what they are buying into, a known French version of a wine with some New World style.

“Then with the quality appellations you can explain that it’s effectively a Rhône-style red, similar but slightly different from another region in the south of France. We sell a fair amount of Languedoc reds to the trade and, while people initially show some reticence, once they try the wines they get it and come back for more.”

Natalia Posada Dickson, Perfect Cellar “The view of Languedoc wine is that customers come looking for Mediterranean styles with powerful fruit and come looking to this region.

But we are seeing less maceration, less alcohol in the wines and more freshness and balance, so now people can have a second glass. And the wines, overall, are well made. The winemakers want to give clean fruit but add layers of complexity and depth just by good winemaking.

“I find what is interesting is what is happening with the whites, which are really interesting, despite the warmth of the region. The best manage to be fresh, with a purity and minerality that you would expect from cooler areas.”

Based in Alsace, Les Grands Chais de France is a family owned business, founded in 1979 by CEO Joseph Helfrich with just FrF5,000 and with the aim of bringing together the best of France’s leading regions, always with a commitment to quality.

Today, the company counts in its portfolio some 41 properties and estates from around France’s major wine-producing areas, including Alsace, Bordeaux, Beaujolais, Jura and Languedoc-Roussillon.

As such, GCF’s wines include benchmarks from across the country, with quality-driven cooperative wines sitting alongside many historic and high-end estates in a far-reaching range. Despite this reach, though, the emphasis remains firmly on independence for each estate. gcfplanet.com/en VECTORSTORY/ISTOCK/THINKSTOCK

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FEATURE WHISKEY

PEDIGREE SCOTCH WHATEVER THE TRIBULATIONS OF MAINSTREAM SCOTCH ON THE UK HIGH STREET, THERE IS PLENTY TO EXCITE THE REST OF THE TRADE, REPORTS TOM BRUCE-GARDYNE

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uly brought news that Jack Daniel’s had overtaken The Famous Grouse as Britain’s biggest whisk(e)y brand.

An American overtaking Scotch?

Surely not! Well only in value rather than volume (according to Nielsen), and not according to Grouse distributor Maxxium UK if you strip out Jack Daniel’s Tennessee Honey – technically a liqueur not a whiskey – and its canned RTD offerings. That said, Jack’s value rose 9.3% in the past year while Grouse slumped 14.9%.

But, while this reflects a long-term malaise in high street blends, there is still plenty of buzz around Scotch whisky in those parts of the trade not tracked by Nielsen.

“American craft whiskeys have seen a real boom in the UK, but that’s not necessarily a bad thing,” says Jonathan Gibson, marketing director at boutique whisky bottler, Compass Box. “It’s got people looking at brands they’ve never heard of and, in our case, in the way we present our whiskies I think we’re more akin to the US approach.” He also believes the UK is a complex market and one should be wary of generalisations.

“Sure, there are places where Scotch is regarded as ‘an old man’s drink’, but there are large metropolitan areas where there’s a strong Scotch culture among a younger crowd.” Helping to educate consumers, buyers and bartenders is considered crucial, as is “being 100% transparent about our whiskies”, says Gibson.

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“SURE, THERE ARE PLACES WHERE SCOTCH IS REGARDED AS ‘AN OLD MAN’S DRINK’, BUT THERE ARE LARGE METROPOLITAN AREAS WHERE THERE’S A STRONG SCOTCH CULTURE AMONG A YOUNGER CROWD” JONATHAN GIBSON, MARKETING DIRECTOR, COMPASS BOX

UPBEAT ABOUT TRENDS Phil Huckle, Pernod Ricard’s UK whisky ambassador, is upbeat about current trends and says: “There are a lot more women drinking whiskies, and the average age of consumption has come down as you can see from all the whisk(e)y festivals.”

He has been working with chef Jason Atherton at London’s Pollen Street Social, where a small cask of Chivas behind the bar is used for barrel-aged whisky cocktails. He has also been rolling out an Art of Blending programme to teach bartenders about blends.

While Pernod’s scale might frighten some independent operators, Huckle points out that few consumers have any idea that malts such as Longmorn and Strathisla are stablemates of Chivas Regal or Glenlivet. And though the latter may be the world’s biggest single malt, there are plenty of SKUs available, notably the non chill-filtered, cask strength Glenlivet Nàdurra range, which is kept for specialist retailers and the on-trade.

For independent familyowned Ian Macleod Distillers there is a natural fit with this side of the trade. “We’ve got Smokehead, an Islay single malt that’s great in cocktails and is a bit rock ’n’ roll and anti-malt, since

you can’t talk about the distillery as we don’t mention the name,” says UK sales manager Neil Boyd. “And we have Sheep Dip and Pig’s Nose, a blend and a blended malt that have more of a hipster appeal. They’re for specialists and the on-premise, as in independent bars in Hoxton as opposed to Green King outlets.” Being top-quality, quirky and as far from the mainstream as can be really matters to independent bar owners, in Boyd’s view.

Overall he sees a dearth of new product development within blended Scotch, and says: “Almost all the innovation has been in single malts, apart from Haig Club, Monkey Shoulder and those new whiskies – Smoky Goat and Boxing Hares.”

This last pair was released by Diageo’s new incubator for experimental ‘craft’ whiskies, known as the Whiskey Union, but they have yet to really appear in Britain. The David Beckhambacked, single grain Haig Club is certainly here, but you are more likely to find it in Asda than the coolest back-bar in town.

Yet Bob Carmichael, who looks after the Islay malt Bruichladdich in specialist stores and the on-trade, is quick to defend Haig Club as “a whisky to recruit people from Grey Goose and Cirôc.” For his

brand, he says: “Provenance is the most important part, as the industry moves away from age statements and new wood types.”

As part of this, Bruichladdich is all matured in situ, while other Islay distillers tanker their spirit off the island for ageing on the mainland. The provenance message is also carried by cocktails such as Saligo Bay with its sprinkling of peat dust on a layer of egg foam. Carmichael also mentions Cherry Smokey Cokey cocktail, featuring Lagavulin and available on tap at Glasgow’s Porter & Rye. For some the idea of a cola-infused single malt may sound like treason, though the industry has spent decades dismantling the old taboos around what you should and shouldn’t mix with Scotch.

Keir Sword of Royal Mile Whiskies is completely relaxed, though personally he is not a soft drinks fan when it comes to malts.

As for displaying whiskies by region, he says: “I think that’s becoming less important, and it has never been ideal.” Better, in his view, is to do it by style and explain the differences to the customers face to face, which demonstrates how important education is.

CHALLENGERS Talking of the challenge from other whiskies, such as Bourbon, Alwynne Gwilt says: “It’s an interesting market at the moment. Scotch is always going to have competitors and consumers are always going to be excited about something new. But Scotch has pedigree – there’s still a lot of space for it.”

In January the former Miss Whisky joined William Grant & Sons as ‘whisky specialist’ for its ancient reserves portfolio, which includes Girvan Patent Still, Kininvie and Ailsa Bay. The latter is a single malt produced at Girvan, whose first release in February was heavily peated and initially matured for six to nine months in tiny 25-100 litre hand-me-down casks from the Hudson Bay distillery.

Girvan Patent Still is a single grain like Haig Club, but the similarities end there. “It’s so unknown,” says Gwilt about the potential for grain whisky. “But that’s what makes it so exciting if you think back to single malts in the 1960s.” With just 0.5% of the market, she says grain whisky is still “very much a hand-sell”, but the potential is compelling. Meanwhile, Grant’s blended malt, Monkey Shoulder, has been dubbed ‘the trendiest Scotch’ after a poll of top bartenders by Drinks International in January. That Monkey Shoulder was launched in 2005 is a tribute to Grant’s patient, slow-burn approach to brand building.

Other distillers should take heed.

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FEATURE UK

THE BEST OF BRITAIN BRITISH PRODUCTS COULD NOT BE MORE POPULAR AT HOME OR ABROAD. ERIN SMITH INVESTIGATES THE OPPORTUNITIES FOR WHOLESALERS

Quintessentially British

products are definitely riding a wave. Whether it’s the ‘craft’ groundswell or a by-product of Brexit, local products are in high demand and locality is becoming quite lucrative.

For regional and national wholesalers the time is right to offer these popular products.

“The opportunity is happening now and has been for a few years,” says Richard Lecoche, business manager of Great Western Wine. “Can it be bigger? I think so, more so perhaps since Brexit.

British produce creates good incremental noise – especially locally – and attracts foot traffic, so offering it is an advantage.”

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FEATURE UK For Richard Chamberlain, director of the Craft Drink Co, who set up his business in 2013 after selling two retail businesses near the Cotswolds, the opportunity, particularly for distributors, was startling.

“The intention of starting the new business was to support small producers and promote and distribute their products to the trade. To be truthful drinks were not the focus at the very outset, but within about six months they became the focus as we suddenly saw the very substantial opportunity as a distributor,” says Chamberlain.

Business since he opened has exponentially expanded. “The first year we had seven brands and we now represent 60 brands,” says Chamberlain. “I don’t think I appreciated quite the groundswell towards craft drinks when I started four years ago.”

Offering local products is a distinct advantage for retailer and wholesaler Rupert Pritchett, proprietor of Taurus Wines in Guilford. “Local and craft products are generally helping sales – very much so. I do see it as an advantage offering local producers. It is something both the trade and consumers are asking for,” he says.

But how relevant are local libations across separate drinks categories?

CRACKING CATEGORIES Craft and local brews are the leading categories for many wholesale distributors, but it’s spirits and wine that are showing the greatest growth.

Craft beer was the first local product to really blaze a trail on the drinks side of things that then absolutely exploded.

“It was evident that there were lots of small producers trying to get to the market. But I never really appreciated just how much something that four years ago was mainly a beer thing suddenly became much more widespread across all categories,” says Chamberlain.

Pritchett offers many local beers in his retail shop, which serve him well.

“If you look at our beer selection we are really lucky because we have 10 breweries within 15 miles. So, with the exception of Peroni, all beer has to come from within 15 miles of us. Local British beers have been really brilliant.”

Beer is still the biggest volume for Chamberlain, but the major growth opportunity for local products is in spirits.

“Beer is still the largest volume of what we do. Spirits is unquestionably a big growth area, especially in value terms. We have seen craft spirits, particularly over the last 24 months, just explode,” says Chamberlain.

For Lecoche, beers have not played as big a role in leading the British brigade, but gin has done tremendously well.

“For us craft beers and ciders don’t add massively to the bottom line, but having a good bunch of local beer and cidermakers is something our customers seem to like. It’s the same with spirits. Gin is significant for us at the moment, we

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IF YOU WANT TO SELL A PREMIUM GIN WITH A PREMIUM STORY YOU HAVE TO HAVE YOUR OWN STILL AND YOU NEED PEOPLE TO BE ABLE TO GO ONLINE AND BELIEVE IT. THE AUTHENTICITY IS REALLY IMPORTANT

stock about 80 mostly British gins. Buying British in these categories is something our customers want to do, and local is even better,” says Lecoche.

Pritchett’s distinct advantage as a regional distributor is that he can offer smaller orders that most distilleries won’t do directly and this has been very successful for him.

Busy pub accounts in his area may only order a premium bottle of gin or two a week and “at that order level, it is not big enough to go directly to the distillery. So that is where we fit in and it has helped round off our offering”.

Rupert Pritchett

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TOO MUCH OF GOOD THING?

English wine, despite its rise in the UK, is still very niche and the price tag can be a challenge.

But Pritchett says that is slowly changing, which is why he does offer some English wines.

“We have supplied a few, but when people saw the price of English sparkling wine, they would look for something cheaper.

“There has always been a demand for local, but it has never been at the point where it is now – at a price where the market was willing to accept it,” he says.

With everyone jumping on the local and British drinks wagon, the market is getting highly saturated.

Richard Chamberlain of the Craft Drink Company says beer in particular is becoming a cramped category.

SECRETS OF SUCCESS Differentiating oneself is always important and distributors are finding the portfolio of brands and the English producers they are working with are critical to the success of the product and categories as well.

How well English wines have done with on-trade customers really varies by producers.

For Lecoche, having producers that work with their on-trade customers is key. This may be where some distributors are missing a trick – bringing on-trade customers together with producers. He has had success with many brands co-hosting at local events.

“Our producers – Chase Gin, Somerset Cider Brandy, Bruichladdich Whisky, Camel Valley sparkling wine, Wiper & True beers, Kenton Vineyard to name a few – have hosted or attended events held with our local restaurant partners, and at Bath Rugby also. Chase took 3k from its Land Rover gin bar at one game last season.

“The same people have supported on-trade opening nights and have trained the staff at our on-trade partners. Link all of this in with GWW consumer business, and there’s a massive halo effect of noise that bubbles up among the local food and drink network that benefits everybody involved.”

For Pritchett, local producers who have an authentic story across beer, wines and spirits are doing well and really stand out.

“If you want to sell a premium gin with a premium story you have to have your own still and you need people to be able to go online and believe it. The authenticity is really important.

“This is true for beer too. We have a local brewery called Firebird and the authenticity there is brilliant – he is an eighth-generation brewer. A keystone to its marketing is a brilliant brewery tour. It must take up so much time and be disruptive, but people only need to do it once and they will drink Firebird beer for the rest of their lives,” he says.

Chamberlain agrees that offering a great experience is key and this includes making sure that the on-trade outlets keep things fresh and interesting.

Chamberlain says: “Consumers

“I believe the beer and cider categories are becoming very full of offerings for the trade and consumer. With 1,600 breweries in the UK, up from 200 not more than 15 years ago, it’s perhaps not surprising.”

Rupert Pritchett of Taurus Wines agrees beer is too crowded and gin may not be far behind.

are looking for experiences that enthral but also deliver value. Ranging to ensure every aspect of the drinks offering has been considered, range rotation to keep the offering dynamic and fresh, menu and signage on the craft offering, staff knowledge and confidence to up-sell craft brands and justify the premium (which often exists), events and promotions that help connect with consumers’ interest are all important.”

While being local is also important, successful brands will need to start to broaden their horizons beyond just the regional hook.

Chamberlain says: “I believe it will be essential for most successful craft brands to have more, much more to their proposition than just local.

“With a market so full of product, it’s crucial to be able to sell your brands further afield because you’ll never have total ownership of your local area. Of course, having a heartland is very important.”

Lecoche agrees – but even further afield the love of British-made products at the moment shows no sign of slowing and they will continue to be a great opportunity for wholesalers.

He says: “The local heartland should always be an easy win, but demand for British produce is strong at the moment.”

“I do think both British beer and gin are overcrowded.

We have seen a lot of brewers come and go, or the breweries have changed hands over the past couple of years. For gin there are an awful lot of labels coming from a particular distillery in London – nice labels and in a pretty bottle. That will no longer cut it,” says Pritchett.

Richard Lecoche of Great Western Wine agrees gin is getting crowded, but he is not convinced it is oversaturated yet.

“I keep thinking gin must peak as there are so many, but in the West Country the appetite for breadth of range still seems unstoppable.”

WITH A MARKET SO FULL OF PRODUCT, IT’S CRUCIAL TO BE ABLE TO SELL YOUR BRANDS FURTHER AFIELD BECAUSE YOU’LL NEVER HAVE TOTAL OWNERSHIP OF YOUR LOCAL AREA. OF COURSE, HAVING A HEARTLAND IS VERY IMPORTANT

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IN AN INCREASINGLY TOUGH WHOLESALE MARKET, ANDREW CATCHPOLE ASKS THE MORE NICHE OPERATORS HOW THEY COMPETE WITH THEIR BIGGER RIVALS

or an on-trade account, choosing which wholesalers to do business with can be crucial to the smooth and successful running of their operation. The big national and regional operators can offer highly competitive deals, with the temptation of a one-stop-shop, often across all drinks categories, backed by highly efficient distribution and greater resources to manage a range of add-ons, from staff training to the drinks list.

Smaller merchant wholesalers thus have to compete by adding their own signature and value to their offer, typically rooted in exclusivity, experience and in-depth knowledge of both product and the local businesses they supply. And relationships are paramount. Here, then, we ask leading operators how they survive and thrive through differentiating their offer.

Patrick Eyres, bin21, Northumberland What are the benefits of buying from a locally based merchant?

“As a retailer we pick up the trends of what our retail customers in the region are looking for and we can react quickly to ensure our wholesale customers are on trend with consumer expectations. In addition, we are open seven days a week and until 10pm most evenings.

We always hold enough stock so that if our wholesale and trade customers have a busier than expected few days we are able to supply them at very short notice or they can drop in to the shop and collect stock on account to see them through. We are able to deliver stock within 24 hours and often the same day.”

How do you compete on price with the bigger regional and national wholesalers?

“We do not have expensive reps on the road, a large head office or an extensive logistical operation and associated costs.

Therefore we can, in most cases, source wines at the same cost and often supply the same wine cheaper as we buy good volumes direct from the importers.

“We make smaller margins on wholesale products, but as we already have regular deliveries locally, adding new accounts simply increases the efficiency of our operation. We have flexible warehouse facilities and if we get a particularly busy run we simply start earlier and finish later to suit the customer. But clearly we are large enough to cope as our wholesale business has increased by 30% and 43% for the past two years.”

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What other main challenges are there to successful wholesaling?

“Competitors always offer challenges so we are never complacent and continually strive to offer benefits over simply supplying a range of products.

Other challenges come in the form of fixed costs such as diesel fuel, which has varied by 30% both up and down in the past 18 months, and warehousing.

KEEPING IT LOCAL Duncan Murray, Duncan Murray Wines, Cambridgeshire What are the benefits of buying from a locally based merchant?

“Quick turnaround is a real benefit. I’ve just delivered on foot to a local restaurant that needed stock this morning. We usually deliver the same day as order placement. Dealing face to face on a regular basis makes for a strong relationship.”

“Another challenge is managing cash flow as the business grows. Unlike retail customers who ‘pay and take’, the wholesale side ‘takes and pays later’.

Diplomacy and relationships are key to ensuring the running of the account works for both sides.”

How important is it to sell your independence as part of the attraction?

“It is very important to sell the ‘local independent’ angle to customers. All our trade businesses like to say they deal with local suppliers and we encourage them to wave that flag when it comes to a wine supplier too. We have worked very hard to build a respectable brand and, along with it, the reputation for quality. It is great to see when customers notice our vans are delivering to a certain account and comment positively on the venue for using us.”

How do you compete on price with the bigger regional and national wholesalers?

“We generally don’t compete on price. Being local our clients come to us for something a bit different. We can deliver small orders (minimum £150+VAT), we offer to help train their staff through wine tastings and education – and we’re fun to work with.”

What other main challenges are there to successful wholesaling?

“Ensuring clients don’t take the piss when it comes to paying. We ask for COD with new accounts and 14 days for longer-term ones. One small chain of Greek restaurants always pays cash for their previous week’s deliveries when we deliver the next week’s.”

How important is it to sell your independence as part of the attraction?

“If we can offer regional exclusivity on some products, that’s a bonus for the client.”

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SPOTLIGHT

MERCHANT WHOLESALERS Erik Laan, The Vineking, Surrey What are the benefits of buying from a locally based merchant?

“Dealing with someone with experience and in-depth knowledge of the area. An independent can tailor its offering to the individual needs of the business and provide a level of advice a company rep is unlikely to offer.

An independent business looks beyond a quarter’s figures and looks to develop business over years, not just to hit sales targets or push a particular deal irrespective of its relevance.”

IF WE CAN OFFER REGIONAL EXCLUSIVITY ON SOME PRODUCTS, THAT’S A BONUS FOR THE CLIENT

How do you compete on price with the bigger regional and national wholesalers?

“We still get pretty good prices as we ship direct. Moreover, we can be more flexible with pricing on certain lines, taking

an overall view of the business.

The added value of providing hosted tastings can help the venue increase its overall sales and margin, mitigating the couple of pennies off the lowest price.”

What other main challenges are there to successful wholesaling?

“The main challenge is maintaining constant stock levels as there are very real demands on cash flow. In many cases, paying duty up front then waiting, selling the wine over a period of time, then getting paid 60-90 days afterwards always puts a strain on cash flow.”

How important is it to sell your independence as part of the attraction?

“It’s very important, especially when dealing with independent owners of businesses. In years of increasing homogenisation, the independent wine merchant and independent restaurant, bar or pub are so important. We survive on flair, personality and provide a very much needed alternative to the ‘vanilla’ offerings of the chains and national wholesalers. Moreover, it’s a natural relationship where we both thrive in each other’s company.”

Philip Amps, Amps Fine Wines, Northamptonshire What are the benefits of buying from a locally-based merchant?

“The main benefits would be flexibility on ordering, speed of delivery on emergency orders, plus exclusivity on wines and the closer relationships that you can form with local businesses.”

How do you compete on price with the bigger regional and national wholesalers?

“We are now part of the Vindependents independent buying group, so we not only get exclusivity but good pricing as well.”

What other main challenges are there to successful wholesaling?

“The biggest challenges are cash flow and request for daft margins. Restaurants that want 55%-60% on food, yet want 70% on wine.”

How important is it to sell your independence as part of the attraction?

“Shopping local and working local are more important than independence. But as an independent business it is mainly about relationships and quality of service provided.”

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ust under thirty years ago Charles Steevenson opened shop in the rural town of Tavistock in Devon with a retail enterprise. Ten years later, he sold the shop and channelled his business plan into developing the rapidly growing wholesale side of the business. Twenty years on and on the brink of selling the business in favour of a quieter life, his son, Liam, persuaded him to change his mind.

He has now rejoined the family fold and is injecting new energy and initiatives into this hitherto traditionally run family company.

Liam Steevenson, who became the UK’s youngest Master of Wine at the age of 27, has grown up with wine. “As I child I spent my holidays wandering through vineyards and wineries with my father,” he said. It seemed natural that a career in the wine business would ensue. Having learnt his trade at Bibendum, when the now-giant company was a small operation of merely 16 people, Steevenson later set up his own wholesale and retail business, Red & White, based in Devon. A brief spell as a buyer for Waitrose followed and he now combines running his own consultancy business with having more recently joined the family firm, aiming to bring a different dimension and modernise the style of the company.

EXPANSION PLANS “Our turnover is currently about £2m,” he told me. “Our ambition is to double that in five years. We’re sticking to the basics of what we do, which is selling very good wine very well, but branching this out into new directions.”

Since the sale of its Tavistock shop, Charles Steevenson Wines has focused almost entirely on the wholesale side of the business, having relocated to a 900sq ft warehouse on a trading estate, still in Tavistock, from where the business supplies its on-trade accounts, but also provides a drop-in service for locals to buy wine by the case. With a loyal, local customer base in the south west, and key accounts such as the Royal Navy and the Marines, Steevenson has built himself a niche in the market for customers in Devon and Cornwall who did not want to buy from the bigger, key protagonists in the region.

Fast forward to today and the plans are increasingly ambitious, now that Liam is on board. “After 30 years, I was thinking of taking things easier,” Charles Steevenson told me, “but with Liam now involved, there is a change of direction, a new energy and a fresh pair of eyes to

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BASED IN TAVISTOCK SINCE 1987, STEEVENSON WINES’ MORE RECENT FATHER AND SON PARTNERSHIP IS DELIVERING FAR-FLUNG AMBITIONS. ANGELA MOUNT REPORTS

FAMILY TIES spot the opportunities. My focus on quality, service and reliability is still at the core of the business. Our customers want variety and they want the best at every price level, so we continually refresh the range, blend new wines and ensure we only sell any particular wine if the vintage is up to scratch. If it’s a poor vintage and we’re not entirely happy with it, we don’t stock it.”

NEW MOMENTUM Liam Steevenson is keen to bring a new momentum to the family business and, in his words, “up the ante”. With plans to tone up the image and feel of the company, his vision is to evolve a traditional wholesale business model into a more modern, interesting and relevant operation. “We have to find a point of differentiation, we have to shape up, be compelling and innovative.”

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SPOTLIGHT

STEEVENSON WINES LOOKING AHEAD – FAR FLUNG WINES, TAKING WINES DIRECT TO THE CONSUMER “Far Flung Wines is going to become a major part of our business. We’ve got a great infrastructure, we are in control of our own distribution network, and we can now reach a broader base of customers who enjoy our wines.” Charles Steevenson “Producers are increasingly keen to work direct; there is pressure to get wine out there, whilst, simultaneously, margins are being squeezed harder and harder. They will deal direct, and cut out the middle man whenever they can.” Liam Steevenson

The company holds bonded stock in Tisbury, Wiltshire, and runs the logistics from its duty-paid warehouse in Tavistock. It uses its own vans to deliver twice a week to wholesale customers. Two extra sales support staff have recently been added to the team. “We believe it’s important to have a voice at the end of the phone,” Liam stated. “There’s generally too much automation on the customer service element of the process these days, and customers value the personal touch.” Minimum orders are two dozen and vans deliver twice a week.

CHANGING MODEL The major areas of revitalisation to the traditional model, where 95% of business is on-trade, are twofold. Firstly, Liam is using his wine blending and winemaking skills to bring a more personal touch to some of the 800 wines in the range. He admits he learnt a great deal about negotiation skills during his sojourn at Waitrose, while developing long-term relationships with key producers.

“It has to be a symbiotic relationship, but we need to ensure we have the very best, and the most individual wines, at great prices, in order to provoke the interest of our customers. Too many independents and wholesalers still don’t know how to negotiate effectively.” House wines have

been reblended and new wines, such as L’Abeille Picpoul de Pinet, are being specifically produced to the company’s requirements to create that point of difference. Wherever it can, it buys direct and builds the bond with the producer. Steevenson Wines is part of the Merchant Vintners buying group and uses those facilities for further-flung wine regions, such as South America, when it needs to, but is focused on creating its own, unique identity.

The second and most key development is the launch of a direct-to-consumer (and private clients) website – farflungwines.com. Once again, with focus on dealing direct with wineries and producing bespoke blends, the Steevensons are looking to get as close to the consumer as they can, with free delivery for local customers within 20 miles and courier service nationally. Liam admits there is much to learn about online marketing and social media, but this embryonic side of the business is what seems to be exciting both generations. “We can work with producers in whom we believe and create our own bespoke blends.”

Charles Steevenson summed up: “We are evolving our business model and I am excited by the new direction. We’ve changed the name of the company from Charles Steevenson Wines to Steevenson Wines. It’s a father and son business.”

THE CHANGING ROLE OF THE DISTRIBUTOR – LIAM STEEVENSON’S VIEWS “The role of importers and distributors is changing at every level. There is so much pressure now, both on margin and on delivering value, at every step of the transaction.”

“We all need to earn our margins, more so than ever. There are more demands now – we can’t just send boxes out of the door. Those who succeed will offer a service that is second to none.”

“If you can sort out distribution, it makes the whole process a lot easier. That should be the number one business priority.”

“We have to do more and more to deserve our margin – more tastings, more wine dinners, more contact with our customers and consumers, more innovation.”

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mporters and agents of all sizes are looking more and more to regional wholesalers to grow their businesses and distribute their products. Regional distributors often have a distinct advantage – they know the customers in the area better and they have local facilities to best manage relationships to independents and on-trade clientele.

Robin Copestick, managing director of Copestick Murray, sees regional wholesalers as a critical element to the success of his business.

He says: “We tend to look regionally because regional distributors know the area better and can represent our brands more appropriately.

The only other choice we would have is to dramatically increase the size of our sales force and go direct, but our strategy is to remain lean, so we need regional distributors.”

So what is it that importers and agents are looking for in a potential partners?

THE IMPORTANCE OF PEOPLE The business of booze, as we all know, is often a social one and the people and what they value actually play important roles when a new regional distributor is being considered.

“The people behind the regional wholesalers are key,” says Ashley Coe, a director at Barwell & Jones. “Our ultimate aim is to enjoy working and growing business together. We look for wholesalers who are aligned with our ethos, strategy and target market. We often connect with family businesses as we tend to share the same values.”

Scott Edge, national account manager at Negociants UK overseeing its Northern England, Scottish and Irish (Northern & Eire) regional wholesalers, agrees and sees a similar value system and way of doing business as an essential consideration.

“We always look for companies that align themselves to our ethos and working mentality. As a family owned and run business, looking for long-term mutually beneficial relationships is absolutely paramount.”

GET TO KNOW THEM

IMPORTERS AND AGENTS OF ALL SIZES OFTEN LOOK TO REGIONAL WHOLESALERS AS PREFERRED PARTNERS TO DISTRIBUTE THEIR PRODUCTS. ERIN SMITH REPORTS ON WHAT IT IS THEY LOOK FOR IN THE PERFECT PARTNER understand each other’s businesses in order to bring mutual success,” says Coe. Additionally, if a distributor wants to win an agent’s business it has to know its products.

Coe continues: “For us both to succeed, the wholesaler’s team has to know our wines. Barwell & Jones have a fantastic team around the UK who can support with trainings and tastings to give extra insight and brand knowledge for the account managers and their customers. Training and education are key.”

Edge agrees. “We are lucky enough to be brand owners, so having a drive and passion

T C E F R PE R E N T R PA

It is important for importers and distributors who are looking together to make the effort to get know each other’s respective businesses to make sure the relationship works for both parties and everyone is able to manage expectations accordingly.

“In order for an agent-wholesaler partnership to work it’s really important to

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MARKETING for our wineries and their wines is needed.

“We want our regional wholesale partners to understand our brands, come to us with their ideas of how they can drive growth and also know that they need to do this,” he says.

WHAT THEIR CUSTOMERS SAY Agents will be looking for distributors that can help grow their business and this often means having an attractive list of clients.

Edge says: “Having a comprehensive reach of areas we are not able to service is paramount, both in terms of relationships and driving new business.”

Copestick agrees that having the right customers which are a good fit for his different brands is important.

“A brand such as Follador, which is our premium Prosecco, needs a distributor which sells to top restaurants and has on-trade customers.

“However, for our I Heart brand it is more important to have a more comprehensive list of night club and smart bar customers, which might be a better fit. We look at it product by product,” he says.

Also, as a regional distributor, what your customers say about you is equally important. “By visiting on-trade accounts in the regional wholesalers’ catchment area, you can make a good judgment about whether a wholesaler would make a suitable partner,” says Coe. She also highlights that personal recommendations are an excellent resource that should not be discounted when looking for

T ERS

DOING BUSINESS

new partners. “Good reputation in the trade and word of mouth go a long way in this business,” she says.

While your customer list is important, Edge points out that if there are potential gaps, all may not be lost. “If there are gaps, then we would like to know what the plans are to extend clientele and create new business,” he says.

OTHER CONSIDERATIONS Further considerations most importers and agents will be looking at include the services you as regional distributor are able to offer your customers, as well as logistics and warehousing capabilities.

“Warehousing facilities are also taken into consideration as it’s important to us that our wines are stored correctly,” says Coe. “Solid logistics provide reliability.

Getting the listing is only half the job – logistics, continuity and reliability keep the relationships and businesses strong. Also HAVING A COMPREHENSIVE REACH OF AREAS WE ARE NOT ABLE TO SERVICE IS PARAMOUNT

having the right portfolio that allows our wines to complement and not compete is fundamental,” said Edge.

It is not surprising that importers want reliable logistics and storage facilities from their regional partners because, ultimately, it will reflect on both the wholesaler and the agent.

“Service is incredibly important in everything we do. We aim to deliver the best service possible to our customers and hope that our wholesale partners do the same,” says Coe. Lately, showing that you are financially stable and helping to educate the wholesaler’s staff are also attractive offerings. “An ability to demonstrate financial integrity and showing a commitment to training and education are critical to even be considered as a partner,” says Coe. Finding the right partnership between an agent or importer and a regional distributor takes time, but often can be a rewarding addition for both businesses.

Edge says: “A long-term strategic partnership provides nothing but positive outcomes – there is a clear understanding of and willingness to achieve both parties’ goals and we work together to achieve those.”

LONG-TERM SUCCESS: TRUST AND COMMUNICATION ARE KEY As in most long-term relationships, trust and open communication are crucial to a successful and enjoyable partnership.

Scott Edge of Negociants UK says: “Open and two-way communication is also very important.

Working with a fifthgeneration family-owned business is something we are very proud about and always communicate to the trade and consumers alike. An understanding of how we work (and, of course, our wholesale partners) encourages long-term stability and growth, hence communications are key.”

For Robin Copestick of Copestick Murray trust is also an important element and is built by being open, upfront and transparent. “While we do like to support our customers and want to be hands-on, we also don’t want to be too visible as we don’t want to step on our customers’ toes.

They have to trust us, otherwise they won’t put the effort in.”

Edge agrees and says: “Absolute transparency in terms of business and communications is also key. They must have a thorough understanding of our business, our wineries and people and share our traits of service, knowledge and friendship.”

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ON-TRADE INSIGHTS THE WORLD OF FINE DINING

TAMING THE FINEDINING BEAST INDEPENDENT FINE DINING CAN BE A DIFFICULT NUT TO CRACK. JO GILBERT FINDS OUT MORE

ulfilling the needs of a standalone fine-dining restaurant can sometimes be a bit like trying to tame a rare and exotic beast.

Their needs are much the same as those of other restaurants – good products at the right price, ranges that can’t be found in multiple retail channels and all backed-up by excellent support and logistics.

But because of the nature of the beast – and its customers – the demands on fine-dining establishments will sometimes inevitably mean that expectations are higher and that suppliers need to be more flexible, more knowledgeable and more willing to offer exclusives.

Sometimes, it can just come down to being willing to deliver more often.

Mathew Simmonds, head sommelier at Paul

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Kitching’s 21212 in Edinburgh, says his experience with small suppliers is that they are more likely to be able to fulfil this requirement.

“Local companies have the ability to deliver smaller and more frequent orders. Also, they tend to be more willing to help you out when you’re in a jam. I only have a small cellar and there is a lot to be said for the suppliers who will drop in a case of something because you’ve run out first thing on a Saturday morning.”

Whether big suppliers or small suppliers are better suited to supplying fine-dining restaurants forms a large part of the discussion.

Those with the buying power tend to think of small suppliers as being able to offer more unique products thanks to long-standing relationships with family run or small-scale businesses and being able to offer better flexibility on delivery times.

On the flip side, larger suppliers are typically seen as being able to offer more competitive pricing and wider portfolios, are less likely to run out of stock and are more likely to support the likes of by-theglass and tasting menus.

However, suppliers which stick to these notions are unlikely to make the most of the opportunities out there, as Glen Montgomery, head sommelier at the Balmoral Hotel’s Number One restaurant in Edinburgh, attests.

For Montgomery, the size of the operation

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FINE DINING

ON-TRADE INSIGHTS

shouldn’t matter. “Knowledge is key,” he says. “I want to work with suppliers who are knowledgeable about our business, their pricing and their range. It might take a little longer for the bigger companies to deliver if they’re in London and we’re in Edinburgh, but I still want to be able to get the answers to my questions straight away or very quickly if I pick up the phone.

“You might think smaller companies are better at this but you’d be surprised – a small company can be just as stretched as a big one.”

Andrew McKenzie, managing director of The Vineyard Group, agrees – and he should know. The group currently has its own wholesale business, The Vineyard Cellars, and its own fine-dining restaurant in the form of The Vineyard Hotel.

For Mckenzie it’s all about “service, service, service.”

“For us it’s about getting up-to-date information on stocks, vintage changes and price changes – especially in the post-Brexit world. We just need to be confident that the ‘pre-sale’ service matches the ‘after-sale’,” he says.

of price and variation,” Simmonds says.

Unsurprisingly, quality also tops the list of priorities for these kinds of eateries – quality of the drinks but also quality of service.

Agustin Trapero, head sommelier at Launceston Place in London, appreciates the rise in level of expertise at suppliers in recent years as more and more companies hire MWs as part of their staff.

“I trust suppliers on their judgement, especially in London where nowadays there is a Master Sommelier or Master of Wine in the team. This makes you feel you are in good hands,” he says – adding that this is something he is willing to pay more for too.

“I only work with suppliers that really look after me and care about my business,” he continues. “Even if sometimes those suppliers are not the most affordable, I would prefer to pay a bit more and get great service, rather than have a robotic, cold relationship.”

MINIMUM ORDERS

EXCLUSIVITY When it comes to standalone fine dining restaurants, exclusivity is king.

While many of the requirements of premium restaurants overlap with those in the mid-range and also group restaurants, offering a unique product can be the key to taming this particular kind of beast.

As Montgomery puts it: “Our customers are well travelled and well informed. A lot of them have access to these suppliers and buy in cases for themselves. So I have to be sure I can present them with something they don’t have access to.”

Yet again, it comes back to the issue of size.

In most instances, smaller suppliers appear to be the go-to places to fulfil the needs of smaller fine-dining outlets.

Simmonds explains: “The smaller suppliers are excellent for the slightly more off-piste wines, real hidden gems from small growers which don’t produce on a big enough scale to be worth the big buyers’ time.

“They are also more likely to offer exclusivity with a product in your area. As a small restaurant we don’t turn over huge amounts of wine so it will never be worth a massive company selling its Champagne exclusively to us within Edinburgh.”

McKenzie concurs, saying he specifically looks to smaller suppliers to offer that all-important point of difference.

He says: “We want to stamp our own

“WE BUY FINE WINE ONLY IF THE SUPPLIER HAS KEPT THE ORIGINAL PAPER OF PURCHASE” IGOR SOTRIC

individual style on our wine list and the smaller supplier is most likely to offer this as they often have small parcels of wine which are of little interest to the restaurant chain or group. This allows us to have something genuinely different to others. Nothing on sale in the supermarkets, please.”

SMALLER SUPPLIERS In such cases, it is common for many finedining restaurants to use multiple smaller suppliers in order to keep their offering fresh and diverse.

In the fine-dining world where many of your customers know where your wine is coming from and who’s selling it, this is essential.

“You can’t just buy all your wines from one supplier or it will start to look a bit like you haven’t selected specific items – you’ve just ordered everything from the supplier’s portfolio. This is why I use so many – it gives me more choice so I can select a good range

Minimum orders can also be an issue for this area of the on-trade – which is typically small-scale in terms of volume – as can be proof of provenance.

With an allocation for around 50 best producers in the world, and stocking more than 800 wines and 300 spirits, China Tang at The Dorchester is in the enviable position of often being first in line when it comes to receiving new products and vintages.

At this level, being able to provide proof of provenance is key to maintaining their reputation.

“We buy fine wine only if the supplier has kept the original paper of purchase,” says Igor Sotric, the restaurant’s wine buyer and head sommelier.

But while the requirements of this part of the on-trade might seem traditional, it would be a mistake to approach these restaurants as if they exist in an oenological and gastronomic time capsule – or to ignore the trends sweeping in from mid-range restaurants and groups.

As time goes by, independent fine-dining restaurants are playing more into the hands of the discerning customer who wants personal touches and unique experiences – and it is imperative that suppliers wanting to work in this sector understand this and support it.

Trapero explains: “People are looking for places with their own soul. So it is important to have a strong philosophy and to have a proper business plan to really know where to go, and where your limits are.

“Copy and paste doesn’t work any more.”

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PROSPECTORS’ CORNER THE DRINKS WHOLESALER TEAM OFFERS A TASTE OF NEW OPENINGS AROUND THE UK

CHICAMERA

SAMARKAND

London CHICAMALONDON.COM

London SAMARKAND.LONDON

The team behind Marylebone-sited Pachamama has opened a new Peruvianinspired restaurant on Chelsea’s King’s Road, dishing up a mix of fresh seafood fusing British ingredients with Peruvian technique and style, such as the ceviche curing with citrus for fish, which is then cooked over a charcoal flame.

To match this medley of coastal-inspired dining, the wine list majors in organic, biodynamic and sustainable wines, with a selection of beers from Japan adding to the selection. Cocktails are rooted in spirits such as Pisco, Mezcal and Sake, with Peruvian fruits thrown in for good measure.

Offering dishes such as smoked aubergine and caviar with slow-baked Samarkand bread and flame-grilled lamb, London’s first Uzbek restaurant has just opened in Fitzrovia, backed by international restaurateur Sanj Naha.

Featuring the traditional cuisine of the eponymous spice road city, but with a contemporary modern twist, the restaurant includes a mezzanine bar where a strong range of vodkas naturally forms the backbone of the drinks offer, which includes a wellchosen selection of international wines.

CAFÉ NORTHCOTE Blackburn CAFENORTHCOTE.COM The Northcote Leisure Group, best known for its flagship gastronomic and wine-focused oasis, Northcote Manor, in Lancashire’s Ribble Valley, has added yet another outlet to is expanding mini-empire in the shape of Café Northcote in Blackburn.

Mixing it up throughout the day with coffee and cakes and freshly made food, this is the group’s first foray into café society, following on from its successful Ribble Valley Inns gastropub venues. The drinks mix includes craft beers and a succinct but well-honed list of wines.

GIN TUB Hove THEGINTUB.CO.UK With a no-booking policy, table service only, more than 50 gins, a block on mobile signals and retro phones on each table allowing customers to order their drinks, the Gin Tub has fast become a hit with the people of Hove.

This botanical oasis is the brainchild of business partners

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Steve Tyler and Scot Callister, and the mobile signal blocking ‘Faraday cage’ – named after a 19th-century British scientist– which envelops the venue is designed to ensure that customers come in, switch off from the outside world and talk to their friends and other customers.

Comfortably ensconced, they can also choose a gin and tonic platter, where they get a pre-decanted gin of their choice, plus a tonic, plus a quirky garnish, allowing them to mix their own Highball.

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BARS, PUBS & RESTAURANTS

THE PLANT ROOMS Birmingham THEBOTANIST.UK.COM Birmingham’s The Botanist has expanded with the launch of its basement bar, The Plant Rooms.

The Botanist is well known for its botanical-based cocktails and hanging kebabs, and its sister venue has been built directly below the Temple Street bar.

The Plant Rooms will have its own bar and offer a different look and feel to The Botanist, although both venues share the same drinks menu, which includes a comprehensive cocktail list with botanical twists and 11 British gins.

The bar has two private spaces to hire out – the Discovery Room and the Tool Room – and will also be using the space to host its Ale and Cocktail Masterclasses.

OVER EASY London OVEREASYLONDON.COM Opening its doors just as we go to press, Over Easy is the latest concept from the Breakfast Group, dishing up all-day brunch to the smart denizens of London’s Duke Street in Mayfair.

Modelled on the popular café culture of Melbourne, but with the heartier influences of US-style brunch dishes, Over Easy is delivering an inspired combination of all-day cocktails to match its mix of indulgent and reviving food.

Founded in 1991 by Eric Yu and Connie O’Donovan, the Breakfast Group counts such popular venues as Jerusalem Bar & Kitchen, Opium, Salvador & Amanda tapas bar and The Social in its growing portfolio.

OTHER OPENINGS Across the UK openings continue apace, with Wadworth launching its first pub in London – The Kings Arms, Fulham – where a £300,000 revamp, complete with pizza oven and new, freshly prepared menu, marks the latest in the brewer’s plans for further expansion.

Galvin Restaurants, meanwhile, continues to roll out its high-end dining reach, with the recent opening in London’s Athenaeum Hotel and a new venture coming soon in Dubai.

Sagardi, offering cutting-edge Basque cuisine, is to open on Shoreditch’s Curtain Road this September, bringing the flavour of Northern Spain closer to London’s hipster community.

In Scotland, late night bar The Priory in Aberdeen has closed, with new owner the Epic Group opening a nightclub called Redemption in the historic St Nicholas Congregational Church. It will feature a bar called Purple Rain.

Down in Leeds, the Jones Bar Group is reopening one of its first ventures on the city bar scene as a new cocktail club concept, to be called the Epic Cocktail Club, opening as we go to press.

In Manchester, the Smokehouse & Cellar barbecue concept is launching, featuring a kitchen fuelled only by fire. This 170-cover restaurant has a wood-fired pizza oven, open-flame fire pit and a huge char-griller barbecue with a range of beers to match. The menu offers classic American smokehouse fare.

NEW OPENINGS

BACKCHAT: THE BUYER’S VIEW Laurent Richet MS, head sommelier at Restaurant Sat Bains in Nottingham, talks about his expectations of suppliers selling into a top-end restaurant

What kind of procedure is in place for buying in wines, beers and spirits?

“We try to keep things simple. We order through our suppliers as and when we need to, both for our existing wines and new ones. We order wines weekly from around 35 companies and may typically be listing two or three wines at a time from any one supplier. Some we only place an order with once a year, others every two weeks.

“A main sell for our wines here is driven by the wine pairings we offer. And we like to try wines from lesser-known countries or varieties too, that just keeps our list fresh and exciting.”

Does it follow that you use fine wine specialists for high-end wines and national companies for house wines?

“No, not really. We can use small, specialist suppliers representing one country, say Hungary, and larger ones for more accessible wines, right up to the high end. Whether small or big, the suppliers we use all have house to fine wine level entry points. And we work with beer breweries directly as well.”

What does a supplier need to offer to win and retain your business?

“Great service, return on corked wines, communication on change of vintages, consistency and sometimes incentives too.”

When can a big supplier be a better option over a smaller supplier, and vice versa?

“Well, the bigger ones tend to have more resources to help with price point. But having said that, some smaller suppliers work hard in delivering competitive prices too. So in all fairness size doesn’t really matter for us. It’s more about the service and how it’s delivered.”

How do the needs of an independent fine dining establishment differ from those in the mid-range and group restaurants?

“I don’t feel you can compare. They are just different places doing things their way. I think the thing that unites them actually is listening to their customers and delivering the product they want.”

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