Latest news with #JohnColley
Telegraph
21-04-2025
- Business
- Telegraph
Majestic pulls wines from shelves after tax raid makes them unprofitable
Majestic has axed wines from a string of small vineyards after a shake-up of alcohol tax rates made them unprofitable. John Colley, chief executive at the wine retailer, said the retailer had pulled a number of wines from its shelves in the wake of new rules which came into effect in February. He said: 'Typically you would range some of these wines for consumers because they love them. But it becomes much more a commercial decision with the changes being brought in. That's the sad thing.' Under previous rules, wines between 11.5pc and 14.5pc ABV (alcohol by volume) attracted the same tax rate. Under the new system, the tax due on them is calculated based on their individual strength, making some wines much more expensive and creating a mountain of extra paperwork for retailers. Mr Colley said: 'If you've got something that just doesn't make sense because the volumes are so small and the cost of administration [has risen], there's an impact. You just can't make any money from doing it. 'We've spent hundreds of hundreds of thousands of pounds on systems just to manage it, it's that complex.' It follows warnings from Mr Colley last year year that some of shoppers' favourite wines 'could increase in price, or at worst disappear from shelves altogether' because of the changes. The shake-up of alcohol duties was the brainchild of former prime minister Rishi Sunak, but was pushed through by the current Labour Government despite fierce lobbying from industry. Mr Colley insisted the changes would not be noticeable to most shoppers unless they were specifically seeking out wines that had been delisted. He said: 'We still have over 1,300 in our offering. The added advantage that we have in Majestic is we've got trained and qualified experts, so if we haven't got a specific Amarone that they were after, we have got an alternative.' Founded in 1980, Majestic runs 213 wine stores on British high streets. The company has been expanding its presence across the country, and last week completed a deal to buy the drinks wholesaler Enotria & Coe, which suppliers restaurants and retailers with high-end wines. This followed its acquisition of bar group Vagabond Wines last year. Mr Colley said the company planned to keep opening retail stores, but warned the barrage of tax increases levied on businesses this month meant 'we're having to be a little bit more picky about types of shops for opening', singling out the rise in employers' National Insurance contributions. He said: 'It's not insignificant. We've had to cut our cloth accordingly within our retail business model. The sad thing is that the changes made affect workers.' A government spokesman said: 'The alcohol duty reforms have modernised and simplified the duty system, prioritising public health and incentivising consumption of lower strength products. 'We continue to work closely with the wine sector to drive growth, support high-quality jobs and identify opportunities to export the UK's fantastic wines across the world.'
Yahoo
31-03-2025
- Business
- Yahoo
UK wine retailer Majestic to buy distributor Enotria&Coe
UK wine retailer Majestic has entered an agreement to acquire local distributor Enotria&Coe. The financial terms of the deal weren't disclosed. The purchase will 'accelerate' Majestic's goal 'to become the UK's pre-eminent supplier of wines, beers and spirits', it said. In a statement, Majestic said it also expected the acquisition to enhance "value, choice and service for its on-trade partners". Set up in 1972, specialist distributor Enotria&Coe has a portfolio of more than 300 wine producers and over 1,500 spirits distillers. It serves on-trade, off-trade and DTC channels, with its customers including specialist bars, hotels, retailers and fine dining venues across the UK. Through the deal, Majestic said it had "identified significant potential" to build Enotria&Coe "alongside" its on-trade supplier branch Majestic Commercial. Majestic CEO John Colley said Enotria&Coe was "a business we have competed against and admired for a long time, with a quality proposition and cultural values that align very closely with what we already do at Majestic". He added: "We believe this is a compelling strategic combination and can see huge potential to further enhance Enotria's proposition and profitability as part of the Majestic group." Both companies will continue running "as standalone businesses" following the transaction. Julian Momen, Enotria&Coe's CEO, said: 'This combination is fantastic news for Enotria&Coe colleagues, customers, our business and our future growth ambitions. From the initial approach and subsequent discussions with Majestic, it has been obvious to me that there is much to admire in their business and their growth. More importantly, we have a similar business ethos, and our behaviours and focus on people means that we are fully aligned on building a successful business together for the benefit of customers and suppliers.' Majestic, bought by US-based investor Fortress Investment Group in 2019, runs 212 retail stores in the UK and Jersey, having opened 22 new outlets since it was acquired. It is looking to increase the size of its portfolio and Majestic Commercial division by 2030. Last April, the business acquired local wine bar chain Vagabond Wines as it looked to reach a younger demographic of wine drinkers. "UK wine retailer Majestic to buy distributor Enotria&Coe" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
