Oddbins chief slams Majestic's supplier demands as 'morally repugnant'

By Gemma McKenna

Published: 11 November, 2014

Oddbins boss Ayo Akintola has ended 25 years of cordial relations with rival retailer Majestic in a hard-hitting comment for Harpers.co.uk in which he accuses the firm of "morally repugnant" and "shabby" behaviour after it called on suppliers to fund a new warehouse.

Oddbins slams Majestic for asking suppliers to support its new warehouse

Oddbins MD, Ayo Akintola, accuses rival Majestic of 'morally repugnant' behaviour

Oddbins claims Majestic's action 'distorts the marketplace' and will impact on quality of wine supply and future leaders of UK trade

As revealed by Harpers.co.uk last month, Majestic has asked suppliers to "support" its new Hemel Hempstead warehouse with a 4p per bottle retrospective payment over six months.

Ayo Akintola Oddbins MD Ayo Akintola has hit out at Majestic's actionsAkintola says Majestic's supplier demands over 'support' for its new warehouse bring a 'sense of dishonour' on the UK wine trade.

But Oddbins managing director Akintola, writing an opinion piece for Harpers.co.uk today, said: "It defies logic that an otherwise well-run company with a history of steady growth and profitability will embark on a significant capital outlay without having a clue of how to pay for it and then scrape the barrel by asking suppliers to cough up the cash for said expenditure. I for one can't simply sit quietly on the sidelines when the standard bearer for our industry is behaving in such a morally repugnant manner, trashing the collective reputation of the UK wine trade and poisoning the well for the future."

Akintola, who runs Oddbins 54 sites, but has ambitious expansion plans, said Majestic's aim to become more like a supermarket was leading it to "screw its suppliers, many of whom have loyally supplied the company for years". He added that the firm has "lashed out against its suppliers" in the face of flat profit expectations, "so it can meet investors' financial expectations of increased dividend payments".

Akintola emphasises that he is not looking to "score points over a rival", but is speaking out publicly on behalf of all those suppliers who are too afraid to do so for fear of jeopardising supply relationships.

Majestic's actions "bring a sense of dishonour" to the trade, Akintola writes, especially given the company's position as a "bellweather" for the UK wine retail industry.

He said the move "pours vinegar" on the UK's international reputation, and "negatively impacted" every negotiation independent wine retailers make. "We should hardly be surprised if the best parcels of wine go elsewhere," said Akintola, as suppliers look for more equitable markets. He added that future trade leaders would mature believing "any action, however unethical, is justified" to meet short term targets.

Majestic declined to comment further on the issue - originally the group told Harpers.co.uk: "We are confident that the centre will facilitate the growth of our business, but it will also benefit all our business partners. We have therefore asked suppliers for their support during this short transition phase."

Naked Wines' chief executive Rowan Gormley has already condemned Majestic's actions. Speaking to Harpers.co.uk last month, Gormley called on suppliers angered by the retailer's demands to switch supply to his company.

"We have now reached a tipping point where the big chains have screwed suppliers in to the sand so much their heads are below the ground," added Gormley.

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