NEWS
Bibendum launches e-commerce site Leading on-trade distributor Bibendum has unveiled its inaugural e-commerce channel, allowing customers to place all their wine and spirit orders quickly and conveniently online. In addition, eligible Bibendum customers will also have access to exclusive promotional deals, only available through the site. The north London-based premium wine, beers and spirits merchant specialises in supplying the on-trade and off-trade, throughout England, Wales, Scotland, Northern Ireland and the
Republic of Ireland. It boasts a portfolio including 260 wine producers, of which English producers include: Albourne, Balfour and Bolney. The total value of the e-commerce sector in headline markets is expected to grow at an unprecedented rate between 2022-2025, according to the IWSR. Over the next five years (benchmarked from 2020), e-commerce sales of alcohol across key global markets are predicted to expand by +66% to reach more than US$42 billion. This figure was
unveiled by the IWSR's Drinks Market Analysis report in 2021. The report stated: “Looking ahead to 2025, e-commerce is projected to represent about 6% of all off-trade beverage alcohol volumes, compared to less than 2% in 2018. The greatest forecast e-commerce value growth will come from the US, thanks to average annual growth in the country of about +20%, which will see it become the top global market for online beverage alcohol.”
Hospitality sector predicting double digit price rises
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The UK hospitality sector is predicting double-digit price rises, which is likely to be passed on to consumers. According to a recent UK Hospitality survey of more than 340 hospitality businesses, representing 8,200 venues, nearly half of operators (47%) reported that they will be forced to increase consumer prices by more than 10% this year, with 15% anticipating hikes of over 20%. Overall, it is expected that prices across the sector will increase by 11%. The inflation comes off the back of a Christmas trading period, held back by Omicron in a sector already in debt and low on cash reserves, following nearly two years of disrupted trading. The increase in prices is being driven by soaring operating costs, particular energy and food prices, according to the survey. A UK Hospitality spokesperson said: “With a return to 20% VAT, plus a rise in business rates and higher labour costs proposed for this April, the sector’s plight looks set to have a significant impact on the UK’s economy. Hospitality’s proportionately larger weighting in the Consumer Prices Index (CPI) means that the average 11% price increase would mean a 1.7ppt rise in CPI. By com-parison it would take a rise of more than 50% in energy prices to have a comparable effect.”
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Also, more than 80% of operators surveyed said they had experienced either moderate (39%) or severe (42%) levels of cancellations since the start of the year, indicating that consumers are already feeling the pinch. UKHospitality chief executive, Kate Nicholls, said: “Omicron has affected the start of 2022 with lower than expected trading levels and higher than expected cancellations in hospitality venues. One in three businesses in our sector have no cash reserves left and are already carrying heavy debt burdens. Many of our community pubs, restaurants, hotels and hospitality venues will therefore fail as the cost of living crisis bites, causing demand to fall. This can only cause the UK’s wider economic recovery to stutter.” She added: “This April’s planned increases in VAT, employment costs and business rates are therefore likely to prove one financial burden too many for businesses who only then, as we come out of the quieter winter trading period, can hope to begin to start trading at full capacity once more. “The industry wants to play its full part in the UK’s recovery from the pandemic but, as these latest figures highlight, we can only do that with further support from the government – support that must include keeping VAT at 12.5% permanently,” concluded Kate Nicholls.
