Blog: Chris MercerOddbins' 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.


BLOG

Bad day on the beer? This'll help

If you work for a brewer and are having a rough week, take a minute to regain some perspective with this, from the good people at US craft beer producer Sierra Nevada Brewing Co....

BLOG

Brewers Association "bid" to buy Anheuser-Busch InBev strikes a chord

Is this a case of if you can't beat them, buy them?...

BLOG

Non-alcoholic beer fails the Bernstein challenge

Crazy days in the Bernstein offices. Taking time out from being one of the world’s top beverage analysts, the Bernstein team, lead by its London-based veteran Trevor Stirling, held its very own taste ...

BLOG

AG Barr launches Funkin innovation search

AG Barr has lined up a Funkin campaign in the UK to find an 'innovation champion'. ...

just-drinks homepage



Forgot your password?