Blog: Oddbins' plight bad news for wine in the UK
Chris Mercer | 4 March 2011
We've added some meat to the metaphorical bones of our Oddbins coverage today, with what we consider to be solid sources saying that the retailer is facing possible administration.
The gist of it is that Oddbins is running out of cash, owes suppliers money and is locked in a potentially-costly court battle with its previous owner, Castel Freres. The outcome of the court battle, in particular, could be key to the retailer's future, as we understand it.
Of course, we're not at the endgame just yet and Oddbins' management has maintained that several options are open to it, including, again as we understand it, restructuring and outside investment.
The retailer's plight, however, is another sad chapter for the UK's independent wine trade. Three quarters of wine is sold by the country's big four supermarkets.
Added to that, huge increases in duty tax on wine, rent rises and a tough economy have played havoc with wine sales over the last couple of years. The forecast for the sector is not much better.
Yet, Oddbins claims to have the highest average spend on wine - around GBP8 per bottle - among the UK's major wine retailers. The UK-wide average spend per bottle is around GBP4.50.
The industry is forever talking about wanting consumers to "trade up". In that context, Oddbins' struggle is a bitter blow.
The UK health lobby is always very vocal on alcohol at this time of year, predictably so, and this year is no different. ...
“Ah, yes, you've hit upon a very sensitive area,” says Thomas, my guide at the Carlsberg Brewery in Copenhagen last Friday....
Experimentation has long been a watchword in the Scotch whisky industry. It is what has given consumers the huge range of ageing options, from refill hogsheads to virgin oak to Sherry butts....
Advertising can be a strange beast. ...
- Comment - The Appeal and Perils of Craft
- Review of the Year 2014 - Part IV: Spirits
- Time is Right for Refresco Gerber Exit
- just the Ten - Top News Stories of 2014
- Review of the Year 2014 - Part II: Beer & Cider
- Belvédère to sell assets, streamline portfolio
- Belvedere vodka tie-up over new James Bond film
- Diageo ups focus on China with Mortlach roll-out
- Brown-Forman eyeing Scotch, Irish whisk(e)y entry?
- Diageo rolls out Beckham's Haig Club to US
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- The IWSR Forecast Report - 2014-2019 Global Review
- Global Tequila Market 2014-2018
- Global market review of non-Scotch whiskies – forecasts to 2018