Bibendum acquires PLB to create 'UK's most powerful independent' drinks supplier

By Gemma McKenna

Published: 29 October, 2014

Bibendum, one of the UK's largest wine and spirits distributors has acquired major rival, PLB, for an undisclosed sum and is merging both businesses, as of today, October 29, into the Bibendum PLB Group, Harpers.co.uk can reveal.

Bibendum PLB Bibendum and PLB join forcesThe deal is formally signed. L to R Bibendum's James Kowszun and Michael Saunders; PLB's Jeffrey Fredericks and Simon Fredericks.

In what will be regarded as one of the biggest deals in UK wine and spirits history, Michael Saunders will take up the role of chief executive of the total group.

The Fredericks' family, who started PLB, will retain a seat on the board of what Jeffrey Fredericks, founder and chairman of the firm, describes as "the UK's most powerful independent drinks company".

He added: "As a family business, it was very important to us that we found the right partner and we have found that with Bibendum. The two companies now join to become the UK's most powerful independent drinks company and a unique route to market for any supplier."

The company will run five separate trading companies under the Bibendum PLB umbrella. Alongside Bibendum, focused on the on-trade, and PLB, still handling off-trade sales, there will be a further three separate divisions, each catering for a different market segment and with its own managing director.

Current PLB chief John Osborne will remain at the helm of the off-trade focused business; Bibendum's former communications head Gareth Groves becomes the new boss at Walker & Wodehouse, the group's new arm to serve the independents' sector; Instil Drinks - focused on craft spirits and beer - will be led by PLB's Mark Johnson; while the Wondering Wine Company, the company's live events division, will continue to be headed up by Bibendum's Simon Swift.

A number of key players from both firms will take up roles spanning across the group, including chief operating officer James Kowszun, brand director Fiona Cochran, operations director Jonathan Newton and buying director Andrew Shaw.

The new company will employ around 300 staff and have a combined turnover of around £300 million, although Saunders admitted some "difficult conversations" would have to be held to avoid repeating roles.

The deal is formally signed. L to R Bibendum's James Koszun and Michael Saunders; PLB's Jeffrey Fredericks and Simon Fredericks.

Initially Bibendum PLB will run from its two existing sites in Primrose Hill, north London and East Grinstead, West Sussex respectively. But Saunders is already on the look-out for a "knock-out" building in the London Bridge area, which would suit all staff, to house the new firm.

Both existing head office properties, which are held on a freehold basis, are to be sold and the new central office would also be bought outright.

Saunders hopes to have made the move by summer 2015. "Hopefully we'll find the right building, with real character. We'll have the Bibendum magic wherever we go," Saunders said.

Both firms were founded in 1982, and have "consumer-centric" approaches. Saunders told Harpers.co.uk: "There are a lot of parallels in terms of what we do. Both are privately-owned firms who take a consumer-driven approach, and who work with suppliers for many years."

Saunders stressed that while there are similarities, there is little overlap between the two companies. "They're much more developed with the multiples and we're much more on-trade focused than PLB."

He added: "There is quite surprising synergy and we will develop a group with a really unbelievable supply base."

"It's very tantalising. I've always passionately believed in growing organically, as I always felt concern about what you might lose compared to what you gain. But it became obvious that this deal should be done."

Read our more in-depth analysis on the subject here

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