Wine merchant Vagabond secures third site

By Gemma McKenna

Published: 22 January, 2015

Independent London wine merchant Vagabond has secured its third site - in Old Spitalfields Market - and is planning to ramp up fundraising to open two to three new stores per year.

Vagabond Wines Vagabond Wines is set to open a third outletVagabond Wines first store in Fulham (pictured) opened in September 2010, followed by Charlotte Street in December 2013.

Stephen Finch, managing director of the burgeoning chain, told Harpers.co.uk that it was considering crowdfunding to raise expansion capital - with the twist that investors could receive dividends in wine.

Funds for the new endeavour were raised through existing investors, but Finch said that once Spitalfields is up and running, "we will switch gears for future sites to leverage our cash flow". He said he would consider traditional bank debt, allied with gross funds and the possibility of crowdfunding.

"We would look to do a Bacchus Bond," he said - likening it to the nine-strong Taylor Street Baristas chain, who looking to double in size, is offering investors dividend payments in the form of coffee, tea and cake. Investors can earn either 8% interest, or 12% in-store credit, while putting up £10,000 or more earns bondholders free coffee and cake every week. "We're in an exciting new world when it comes to crowdfunding," Finch said.

He said he had already identified a number of potential new-build sites and was in talks with landlords, but said they "won't be available for some time".

"There is a possibility of two sites for 2015, and thereafter two to three per year," he added. For the next few years it will focus on central London openings, but then Finch "would consider the rest of England".

The new unit will open in May 2015, and will be modelled on its most recently opened site in Soho's Charlotte Street. It will have retail and wholesale at its core, but will have a strong on-trade offer. The site spans the ground floor and basement, which will be used for tasting events and private functions, as well as a sizeable outdoor seating area. The interior has been designed by the team behind the Breakfast Club venues. It will remain true to the brand's 100-bottle ethos.

The group is planning to ramp up the direct sourcing side of the business, currently around 25 to 30% of its wines are sourced directly, but it would like to see that figure increase to account for around half of its stock.

"Currently we're doing that on our own, but we are part of the Vindependents buying group. We're just dipping our toe right now, but we're open to ideas of working with credible, reliable independent about group buying," he said.

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