Looking Back, Forging Ahead Q&A: Andrew Porton, Lanchester Group

By Harpers Editorial team

Published: 14 December, 2022

Following another turbulent year for the drinks trade, Andrew Porton, wine division managing director at Lanchester Group, reflects on the highs and lows of 2022, plus the hopes and plans for the business in the year ahead

How has business been for you across 2022 when compared with 2019?

We are definitely noticing a downturn in volumes with parts of the on-trade but we have a well-diversified client base so we continuing to trade robustly. Rising costs of transport, dry goods and glass have hit our profitability, as they have every other wine business. The business of shipping and producing wine was so much easier and cheaper in 2019!

What, for you, were the specific highs of 2022?

I’ve managed to travel again this year – it’s been wonderful to see our producers again and the blending and tasting we’ve been doing on these trips has highlighted what I’ve really missed these past couple of years.

And, continuing to win awards for our wines: Silver at both the Harpers Design Awards and Travel Retail Awards for our Wallflower canned Spanish wine range (packed at Greencroft Bottling) and Silver at the IWSC for Moloko Bay South African Sauvignon Blanc.

And the lows?

Surfing the tide of all these cost increases. And demurrage – the shipping lines have been holding this industry to ransom and need dealing with at governmental level.

More specifically, how has the cost-of-living crisis and inflationary pressures impacted and what as a business have you done to help mitigate the effects for you and your customers?

It’s been far from ideal – but we are all in the same boat. We have tried to be as candid and honest as possible and to closely consider price increases line by line rather than imposing a standard percentage across the board. UK packed wine is an inherently cost-efficient model, which helps.

How much of a concern is the proposed change to the duty regime?

It is a concern of course, but of greater concern are the forthcoming recycling/deposit schemes that do not appear to have been properly thought through and will burden our industry with yet more extra costs and bureaucracy.

In terms of the product itself and drinking occasions, which current trends in the drinks’ world would you predict to continue to grow and why?

The prospect of ABV-related duty increases will mean that lower alcohol wines will continue to grow as a category.

As a business, what goals have you set for 2023 and how do you expect to achieve them?

Within the group the big goal is to start bottling in the fantastic new Greencroft Two – our most ambitious project to date. Within Lanchester Wines and The Wine Fusion we are continuing to develop more sources of boutique bulk, including a large number of European lines – UK pack is no longer all about deep-sea.

More generally, in terms of business, how do you predict the drinks landscape will look this time next year?

Margins are tight and rising costs will squeeze them further. It’s inevitable there will be some casualties.

Quick fire questions:

Champagne or English sparkling?

Champagne

Cocktail or straight spirit?

Cocktail

Riesling or Chardonnay?

Chardonnay

Pinot Noir or Bordeaux-style blend?

Pinot Noir

Michelin starred or relaxed bistro?