3 minute read
THE BURNING QUESTION
Investors seek refuge in fine wine
Bordeaux Index, the world’s largest fine wine trader, is toasting surging sales as investors flock to buy rare vintages in part as a hedge against rampant inflation.
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Revenues at the fine wine merchant reached £80m in the six months to June 30, up 37% on the same period last year. That puts the London-headquartered company on course to beat 2021’s record revenue of £126m.
The merchant’s online wine trading exchange, LiveTrade, was responsible for the majority of growth, reporting sales 53% higher than the comparable period last year.
Financial Times, August 5
High hopes for low-calorie drinks
Low-calorie alcohol retailer Drinkwell has received a £1m investment from a private investor to fuel its ambitious expansion plans.
The funding, which will enable Drinkwell to grow its team while launching two new brands, Lean Brew IPA and Traces Wine, amplifies the consumer trend for low- calorie drinks that meet people’s lifestyle needs.
Tom Bell, founder of DrinkWell, said: “In recent years the lower-calorie alcohol space has exploded in popularity, due to consumers becoming increasingly health conscious. The data backs up the fact that health and diet are really starting to take precedence amongst most consumers, which brands absolutely need to take note of if they want to not only survive but thrive in a rapidly changing market around lifestyle and wellness.”
The Drinks Business, August 23
?THE BURNING QUESTION
Are suppliers offering reasonable minimum order quantities?
�I work with many suppliers like Boutinot, Liberty, North South and Hayward Bros. All of them have been very helpful with meeting acceptable order levels. I can’t think of single supplier we work with that hasn’t seen the need to be more flexible around ordering. Wisely they have looked at the economic climate and decided they need to survive too. All in all I am extremely happy with the suppliers we have chosen and feel we’ll take on the financial issues together.”
Julie Mills Vinomondo, Conwy
�We haven’t enquired, but it hasn’t been offered either. The increased costs affect everyone, so it’s difficult to say ‘I’m not going to pay that, or I need a better deal’. We look at it as a two-way street: we would never really ask too much of suppliers, as it has to be a collaboration. Companies like Thorman Hunt … it’s a privilege to deal with them, they are such nice people and their wines are so good. It’s the same with Alliance and Liberty.”
Mark Banham Morrish & Banham, Dorchester
�I think they generally changed during Covid and it was like,‘any order you want to put in, we’ll support that’, and it seems like most of those changes have stayed. New suppliers seem to have some of the highest minimum orders. I wonder if it’s creating a two-tier supplier agreement: if you’re a longstanding customer they’re like ‘fine, whatever you can order,’ but for new accounts they are more prescriptive.”
Cat Brandwood Toscanaccio, Winchester
�I think some of them are a bit nervous about the financial environment at the moment and so some are almost encouraging us to order smaller amounts. Short answer is yes, I think they are being more flexible. I think they’re worried about customers defaulting. Some suppliers have offered me a discount if I pay up front, so they are happy to take a smaller margin rather than someone defaulting.” Ashton McCobb H Champagne winner H
