BUSINESS
The challenges and opportunities of a fine wine merchant L’Assemblage is an award-winning specialist fine wine merchant and a French winemaking term that best defines the finest grape and wine selections. Founded in 1996, we sell classic wines that truly express the character of their regions. Apart from trading online from our offices in West Sussex, we offer consultancy services on cellar management, investment and international delivery.
THE CHANGING TIMES
It was a whole different trade back in 1996 when we moved our shop online. The release of Windows and the internet made trading easier, slashing shop running costs. As with thousands of new startups, NatWest helped our business to flourish with a useful credit line and understanding corporate managers, who became loyal customers. Gradually we switched from fax to email and text, Streamline to Worldpay and Sagepay. Initially we started out as brokers then ploughed our profits back to become significant stockholders. The interest on our savings was far more attractive invested in wine, where the returns averaged 24% per annum on desirable bonded cases. We sell limited quantities of fine and rare wines that one can’t usually find in the supermarket or chains. That doesn’t mean that great wines are expensive. More satisfaction can be attained from finding that rising star beneath the radar. So much so we’ve also become investors in growers we trust. The MD and founder, Guy Willings, studied wine marketing in Australia but soon realised his interest lay in the classic wines of France, and especially Burgundy.
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BACK TO BURGUNDY
Having recently returned from our first buying trip to France in over two hard years, we’ve noticed the region has boomed. The world’s greatest Pinot Noir and Chardonnay wines have never been as popular, with increasing demand and small harvests fuelling a surge in prices. Burgundy consolidated its position as the top wine region in value for 2021, making up 41% of our total sales (compared to 32% for Bordeaux). Volumes were down by 7%. Clearly 2020 was another ver y successful vintage for the region. The whites were invigorating with fresh citrus and stone fruit depth, acidity and minerality. Pierre Vincent of Domaine Leflaive has made some of his finest yet. The reds were composed, aromatic with ripe red berry fruits. Many are rich
and concentrated with tannins to help them age. Highlights include the pinots we enjoyed at Domaines AF Gros, Tawse and Comte de Vogue. A drawback is the tiny 2021 harvest that follows, pushing up prices on previous vintages. Lack of supply is a burgeoning problem, whether caused by global warming or worldwide demand.
THE MARKET AUDIENCE
The market has become more congested with thirsty trade and privates buying for collections, gifts and investment. This last decade we have seen rising demand from Southeast Asia and the home market. The UK accounts for 61% of our annual sales. Exports to the US are steady with the remainder spread primarily across Europe.
