THE WINE MERCHANT. An independent magazine for independent retailers
Issue 112, April 2022
Dog of the Month: Max Vinotopia, Nailsworth
Consumers must share the burden of our soaring costs Faced with huge increases on all fronts, indies say it’s impossible for them to absorb it all – and prices will go up
I
ndependent traders say it’s inevitable
that consumers will face higher prices following an unprecedented rise in
the cost of wine and other drinks.
Merchants are also being hit by soaring
utility bills and fuel prices, as well as
additional costs associated with shipping.
Rises in business rates, rent and staff costs
are also taking their toll.
Indies are reporting an across-the-board
increase in wine and spirits, which is
adding around £1.50 a bottle to some core wines in their ranges.
Merchants who ship direct say groupage
costs from France have shot up from
under £4 a case to over £13. The cost of
transporting a 40ft container from South
America has risen from around £2,700 to nearer £4,300.
“It’s an extremely challenging time to
be in business,” says Jen Ferguson of Hop
Burns & Black, which has two branches in London.
“Every business owner will be going
through the same dilemma right now. Costs are rising exponentially across pretty much every aspect of what we do, but there’s only so much we can absorb before we
need to start passing some of these costs on to our customers, who are also facing
an unprecedented increase in the cost of living.
“How much can we realistically
absorb? How much is too much to pass
on to customers already under financial pressure? How can a small business
compete in this straitened environment against the bankrolled big guys? It’s a treacherous tightrope right now.” Hal Wilson of Cambridge Wine
Merchants adds: “It is important in our very competitive businesses that we Tony Resta is a natural born retailer, running successful wine shops and bars – which also specialise in beer and deli items – in north London. Read our profile of his Yield business on pages 30-36. Only about half of revenue comes from walk-in custom
maintain gross profit margins while controlling costs.
“Those objectives are challenged in times
of high inflation, with erosion of margins and rising costs squeezing the
