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.
Whenever we read anything about Millennial consumers, there is almost always mention of the personalisation trend as well as the importance of social media....
Ever wondered what fuels Anheuser-Busch InBev's acquisitional drive? Is it naked ambition? Faith? The good of mankind?...
Anheuser-Busch InBev is reportedly calling a halt to its Seth Rogan and Amy Schumer Bud Light campaign in the US....
Today is SABMiller's final day. Some time this evening, Brussel's time, the second-biggest brewer in the world will be subsumed into the biggest, creating a beer behemoth of unprecedented proportions....
- Diageo NA head on Trump, Millennials, Bourbon
- Has Millennial-mania drowned out elder consumers?
- Interview - Loch Lomond GTR head Andre de Almeida
- Trump, local spirits and the IR role - The Analyst
- Absolut and Smirnoff's conflicting Millennial view
- Beam Suntory opens global headquarters in Chicago
- Diageo wine assets integration head to leave TWE
- Absolut not "sufficiently focussed" on Millennials
- Molson Coors names UK & Ireland managing director
- Pernod Ricard targets at-home drinking