The
Society of Vintners, as the National Wine
Buying Group owes its origins
to the Nottingham Wine Buying Group and
the Allied Wine Buyers Consortium.
In
the early 1970's, five Nottingham Wine Merchants met in a Nottingham
hotel and joined together to form the Nottingham Wine Buying Group
to enable them to compete more effectively in the marketplace.
John Walton was appointed Chairman, the position which he held
for over twenty five years.
Initially,
the Distillers Company strongly supported the Group and they introduced
many companies, some of which were admitted as members, giving
a spread throughout the U.K..
In
the late 1960's two Wine Merchants in North London, Arthur Rackham
and Lew Curtis, similarly formed the Allied Wine Buyers Consortium
which grew to a membership of twenty members in the South of England
and Midlands. As time went by, membership fell slightly and they
decided to approach the Nottingham Wine Buying Group, whom they
joined collectively as a Group. The AWBC had its strength in the
shipping and the NWBG in deals with major national suppliers. At
this point it was decided to change the name to the National Wine
Buying Group, with the initials NWBG, fortunately being the same.
The parent company Nottingham Wine Buying Group Limited also remained.
Mr
Lawrence Page, current chairman of the TSOV explained: " The
group has grown since then to incorporate 21 members covering England,
Wales, Scotland and the Channel Islands. The AWBC had its strength
in shipping and the Nottingham group in deals with major national
suppliers. Since then we have been able to expand direct shipping
from abroad."
TSOV
has an administrator working from an office in Sussex and committees
within the group are dedicated to various wine producing areas
such as Chablis,
Rhone, Champagne and so on. "The committees meet
for tasting and reviews of purchasing once a year.
We
have a range of different samples from different negociants and
recommendations
are taken from there. It may be that one member has a particular
agreement which he does not want interrupted, but mostly we get
together and put our weight behind the Group recommendations,
" said Mr Page.
TSOV
prides itself on a quality rather than price focus, differentiating
it from many other buying
groups. "We look for quality and the service provided by suppliers,
not the most expensive deals, but
nor are they the cheapest."
Visits
are are carried out by TSOV members as often as possible and
a recent trip was undertaken to Portugal for a visit to the group's
main port wine supplier.
The
photograph above shows group members on the steps of Quinta
das Carvalhas, a royal Oporto estate and park of the Real
Campanhia Vena, led by the Deputy Chairman Peter Vinnicombe. Please
click on the photo to view a larger copy. Top
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Aside
from increased leverage, potential Group members benefit from an
existing skill base, with overheads kept to a minimum.The requirements
to join are a minimum turnover of £2 million and the ability
to contribute reasonably to the product mix, which is reviewed
regularly.
As Mr. Page said: "huge
benefit is the opportunity to talk to like-minded people several
times a year at our meetings".
We
can help with practical problems, such as where to buy carrier
bags or carton, computer systems and ancillary services."
Cross
border trading has had a detrimental effect on the independent
wine merchants, with sales, particularly in beers and spirits,
falling considerably. Although this may have been felt most in
the south-east, reverberations have been felt around the UK. As
Mr. Page said: " We have this ridiculous anomaly of cross channel
trading where consumers can buy wines and spirits without paying
Duty and VAT in this country. Having said that, other recent trends
mean that we have all benefitted from the increase in consumption,
particularly of table wine."
According
to Mintel, it tends to be the heaviest wine purchasers who buy
abroad. As one of the contentious issues in the trade, according
to HM Customs,
cross border shopping accounts for 8% of the wine market, although
trade estimates tend to be higher. It is legal
trade, rather than smuggling, which tends to have more impact on
the wine trade.
Since
the introduction of the single European market, the amount of wine
purchased abroad and bought in the UK has increased
each year.
The
size of the independent in comparison with large nationals affords
them the luxury of speed in terms of new products onto shelf and
the added benefit of a consortium where the exchange of ideas and
findings is imperative.
"We
have found that the French wine market is relatively static, or
even falling and have moved towards growth areas such as Australia
and New Zealand, which have shown a staggering 50% year on year
growth; also new areas such as Chile and Argentina.
We
are very fortunate in the UK as the public are willing to try new
wines
much more than perhaps consumers in other countries where they
show allegiance to their own wine producers. TSOV is able to
offer products from all over the world, where there is a demand."
The
Society of Vintners will continue to look towards forging
closer links and developing more exclusive overseas brands, and
placing more emphasis on overseas visits.
Mr. Page concluded: "We
want to catch the imagination of members in expanding our New World
wine opportunities and also to maintain focus on our Group meetings
which are wonderful opportunities, not only for members, but also
for wives and families to come together in a relaxed atmosphere
and exchange ideas."
Yvon
Mau vineyards, Bordeaux - Lawence Page TSOV Chairman back centre.
Mr.
Page concluded Mintel's report states that factors likely to influence
the future development of the wine market include the UK's changing
demographics, the state of the economy, the single European currency
and shortage of product. Demographic changes are likely to bring
into the market an increased number of consumers who are familiar
with wine and willing to experiment.
The
volume growth of wine is expected to be maintained, with a further
growth in value terms as consumers trade up to superior wines.
The booming worldwide market and the trend to red wine away from
white has resulted in a shortage of red wine, which may force prices
up. Space allocation is not likely to change, the balance already favours
wine.
Reports
suggest that for wine retailers to succeed, they need to be specialists
as consumers are becoming much more educated
about the product.
Retailers
are expected to experiment with their offerings, not only with
different wines, but also wines presented
in different formats and pack sizes.
It
is in this respect that TSOV has found the recipe for success.
A combination of buying power and specialist knowledge will see
the group ready to move with the changing shape of the market.
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