The UK market is more competitive than ever. Early figures for 2013 suggest that the multiple retail sector, which is responsible for nearly half of UK wine sales, recorded a 2.6% volume decline to 87.4m cases (Nielsen, MAT to 4 January 2014).
Meanwhile, value was up by 2.3% to £5.5bn ($9.22bn) over the same period – impacted by ongoing excise tax increases levied by the UK Government.
In a mature market where years of above inflation tax hikes have diminished margins, all players are seeking ways to maximise value. Many are also rationalising their product range to drive efficiency.
Beyond the big retailers – Tesco, Asda, Sainsbury’s, Morrisons and Waitrose – one national specialist, Majestic, has survived the collapse of the sector, while about 700 regional and smaller independent retailers account for roughly 25% of the market.
The on-trade is diverse: white tablecloth restaurants, casual dining, bars, gastropubs and traditional pubs, taking another 25% or so of the category.
Who are the gatekeepers in early 2014? Here, leading wine importers and distributors pick out the individuals they believe are the most influential buyers operating in the UK, from multiple retailers to specialists and on-trade operators.
Henry Boyes, procurement manager – wine, Mitchells & Butlers plc
Since December 2012, Henry Boyes has been responsible for the category management of wine at Mitchells & Butlers, buying all the wine for a company with more than 1,600 pubs and restaurants across the UK. Brands include All Bar One, Browns, Harvester and Toby Carvery, with annual sales of nearly £2bn ($3.35bn) across all categories and selling more than 34,000 bottles of wine a day. For Boyes, the crucial aspects of his job include developing wine lists and the “creative aspects” of the category, shaping the wines sold to the needs of the individual pub/restaurant brands and their consumers.
He began his career at a Sydney wine merchant in 2000, before returning to the UK to work at Oddbins and Enotria.
They say…
Bibendum managing director Michael Saunders: “As wine procurement manager for the leading operator of restaurants and pubs in the UK, he is in a key position to shape the wine experience of UK consumers across many successful brands, which include All Bar One, Browns, Harvester, Vintage Inns, Premium Country Dining Group and Ember.”
He says…
What makes you good at your job?
I think my experience to date, working in different areas of the wine trade, both in the UK and in other markets, as well as having an understanding of the business and consumer needs, is vital to the continued success of Mitchells & Butlers. I set very high standards for myself and my suppliers, and I am determined to meet those standards on a daily basis.
What advice would you give a wine producer looking to enter the UK?
Focus on the market. Do your research and really understand what the consumer is looking for. Don’t just try to shoe-horn your products into a market that is as competitive and mature as the UK.
What’s the big wine trend of 2014 in the UK?
Brazilian wines – simply because there will be so much activity around this and across all food and drink sectors over the coming year. However, I think that anything that offers a sense of fun around wine and really engages with the consumer could be very successful.
Jo Eames, co-owner, Peach Pubs
A lawyer by profession, Eames “fell into” the job of wine buyer when Peach Pubs opened its first site in Warwick in 2002, based on a passion for the subject which dates back to university days. Twelve years on, Peach has an annual turnover of £20m and 16 pubs in the heart of England, with one or two more sites due to open in 2014.
Focused on thriving market towns, the company’s approach varies from site to site, but the wine list is largely identical, with about 16 whites, 16 reds and a small selection of rosé and sparkling. Eames reckons the “vast majority” of sales are below £30.00 a bottle, but has recently introduced a few higher-priced wines for special occasions, with some success.
They say…
Liberty managing director David Gleave MW: “This predominantly Midlands-based pub group has grown to include a total of 16 sites, and Jo has been involved since the beginning. This is a great example of how working with buyers can be mutually rewarding: we support them as they grow, and see business increase as a result.”
She says…
What makes you good at your job?
I come from the point of view of an amateur and I like that. I haven’t done any WSET training because I want to keep the outsider’s view, because I’m buying for my guests and I want to stay on that side of the fence. I want my list always to be approachable for my customers – I want to sneak up behind them with a world-class wine.
What advice would you give a wine producer looking to enter the UK?
First: Make the best wine you can. Second: Partner with a great supplier who lives your values. I think getting the right person to represent you is absolutely key.
What’s the big wine trend of 2014 in the UK?
Premium Malbec. It’s becoming the new New Zealand Sauvignon Blanc for us – people seem willing to trade up for it. It’s been gaining traction as a pouring wine and now we’re selling more by the bottle.
Dan Jago, UK & group wine director, and Laura Jewell MW, senior wine product development manager, Tesco
Arguably the two most powerful individuals in the UK wine market, Jago and Jewell are the lynchpins of the country’s largest wine retailer, with more than 3,000 stores and over 1,400 wines. Or, globally, more than 6,600 stores in 12 countries from UK to China, and annual wine sales of over £2.5bn.
Jago, previously joint managing director at Bibendum, joined Tesco in 2006 as BWS category director, becoming UK & group wine director in December 2012. Responsible for Tesco’s entire wine offer, he has introduced a global sourcing team in an effort to “ensure that there is a streamlined range of own label and branded wines across all markets”.
Jewell, a wine trade veteran who joined Tesco in 2010 after spells with Spar, HwCg, Sainsbury’s and Waverley Vintners, leads the wine product development team and takes responsibility for the entire range.
They say…
Bibendum managing director Michael Saunders: “As UK & group wine director for Tesco, Dan Jago is responsible for developing Tesco’s global wine business, making him incredibly influential in shaping the landscape of the off-trade wine business. Alongside Master of Wine Laura Jewell, they make a phenomenal buying duo.”
He says…
What makes you good at your job?
I have a background in the global wine industry, which makes me unusual in the world of retail, where people tend to change jobs or responsibilities frequently. I care passionately about the longevity, credibility and profitability of this business and about the people in it.
What advice would you give a wine producer looking to enter the UK?
Do your homework. See what we do, what others do and how they do it, and decide which is the best route to the consumer for your products. Don’t always be obsessed about growth, but do be obsessive about quality, and the quality of your relationship with your customers.
What’s the big wine trend of 2014 in the UK?
The changing promotional landscape. As volume declines, value – in all senses of the word – becomes paramount to both retailers and consumers, along with thinking about alternative ways to sell your wines and engage the consumer.
She says…
What makes you good at your job?
Product knowledge and experience, having been an MW since 1997 and worked in many sectors of the trade. Listening to customers and understanding how they think and talk about wine, so we can have proper conversations with them.
What advice would you give a wine producer looking to enter the UK?
Do your research, and have a clear customer need for your wine and know who you want to target and what channel to use, in store, or online, or on-trade, etc.
What’s the big wine trend of 2014 in the UK?
A deliberate change in wine styles to entice the younger generation into wine drinking, with different flavours and sweetness levels.
Xavier Rousset, co-owner, Texture and 28°-50°
Rousset was the youngest Master Sommelier in the world when he gained the qualification at the age of 23 in 2002. In the same year, he became head sommelier at Hotel Du Vin in the UK, before moving to Michelin-starred Le Manoir aux Quat’Saisons, where he met Icelandic chef Agnar Sverrisson. The pair opened Texture in 2007 – a London restaurant where the wine and the food are viewed with equal importance. A Michelin star was awarded in 2010, and the duo have also embarked on a second venture, 28°-50° (referring to the latitudes between which most wine grapes are grown). This bistro-style, wine-to-the-fore concept now has three London venues and has acquired a reputation for unfussy dining and an intriguing, relatively affordable (by London standards) wine list.
They say…
Bibendum managing director Michael Saunders: “Xavier Rousset is an influential figure in the on-trade, who has been a Master Sommelier since the age of 23. His restaurants, Michelin-starred Texture and bistro-style 28°-50°, have regularly changing, niche wine lists ranging from interesting, good-value wines to extraordinary, privately sourced collectors’ wines listed at affordable prices.”
He says…
What makes you good at your job?
It’s about knowing your customer. I always say buying wine is pretty easy – selling it is the hard one. You need to know what you’re looking for and you need to have that real commercial view. After that, it’s experience: knowing where to source it properly, the best price and the best producer.
What advice would you give a wine producer looking to enter the UK?
It’s probably the most competitive market and it’s driven by price quite a bit. Having the right importer is the key thing, and having the right relationship. They need to be positioning you where you want to be seen – a pub for your Chilean Carmenère, or fine dining if it’s Premier Cru.
What’s the big wine trend of 2014 in the UK?
A softer mark-up on the better wines, and more and more wines by the glass. Maybe back in the day there might have been only two or three wines by the glass; now it’s five or six, and maybe the average price has gone up as well.
Tim Sykes, head of buying, The Wine Society
After an abortive career as a solicitor, Sykes started working at London fine wine shop La Vigneronne, moving on to merchant OW Loeb and spending 15 years at importer and distributor Enotria. He became The Wine Society’s head of buying in March 2012 and now oversees about £40m of wine purchases annually. The Wine Society has, in UK terms, a unique business model – it’s a mutual organisation owned by members who pay a fee to join and then have access to a 1,500-strong list. Sykes oversees a team of six (soon to be eight) buyers and works on improving supplier relations.
They say…
David Gleave MW, managing director, Liberty Wine: “As a mutual organisation, they are able to champion new regions and varieties with their focus on customer service, not profit. Recognised across the industry as a market leader, their customers trust their buying team to find interest and good value in equal measure.”
He says…
What makes you good at your job?
A combination of very broad buying experience, an understanding of different quality levels from house wine to Grand Cru Burgundy and First Growth Claret, experience of working in retail, wholesale and agency environments, an understanding of producers’ needs, and strong commercial credentials gained from 15 years at Enotria.
What advice would you give a wine producer looking to enter the UK?
Do your homework before approaching potential customers. You will save yourself a great deal of time, expense and possibly anguish by identifying the most appropriate route to the consumer for your wines.
What’s the big wine trend of 2014 in the UK?
I receive more comments from customers about excessive alcohol levels in wine than any other subject. I think that discerning drinkers are becoming tired of big, alcoholic, unstable wines and are beginning to look for wines displaying more moderate alcohol levels and greater freshness.
Dirceu Vianna Junior MW, wine director, Coe Vintners
What trends are you seeing in the UK at the moment?
Prosecco is flying, New Zealand is doing well, Malbec is doing well for us, and Spain is doing well. What’s doing very well, which will surprise many people, is Portugal. The Portuguese surprised us last year because of their quality and value for money.
What are you looking for?
What we are looking at, specifically, are for things that are different and good value for money. Uruguay. Croatia is a niche that has good value wines. I’m looking at Romania, where we see good value, and maybe Hungary and Greece as well. We are looking for alternatives that reflect good value for money. We need to encourage Australia. I fear for France, especially Burgundy, with the price increases. FC
