Looking Back, Forging Ahead Q&A: Jon Carson, Carson & Carnevale Wines

By Harpers Editorial team

Published: 19 December, 2022

Following another turbulent year for the drinks trade, Jon Carson, director at Carson & Carnevale Wines (pictured, right, with co-director Christopher Carson), 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?

2019 was only our second full year trading and we were, at the end of that calendar year, in line with our initial five-year business plan. This year, we are back on track having increased the number of distribution points by over 50% versus 2019. Frustratingly however, rate of sale (as documented in a number of trade reports/analyses) has been down versus 2019, so despite the new accounts we have not increased turnover on a pro-rate basis. This is something that we have been adapting to throughout the year, but of course, we are pleased to be supplying our wines to a more diverse customers base than before.

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

Post pandemic – getting back to what we enjoy doing: working with producers to develop distribution and with customers to build mutually beneficial supply partnerships, understanding their needs in this tricky environment and working collaboratively to become a more important part of their business. Also, managing to grow our business by circa 20%, which will provide a solid platform for further growth next year.

And the lows?

The constant uncertainty served up by the government has certainly ensured that UK businesses and consumers have lacked confidence. Planning has been difficult and the war in Ukraine’s impact on dry goods (specifically glass), increase of energy costs and subsequent price increases have been very challenging to manage. There has also been impact on exchange rates caused by the government’s horrific mini budget at a time when businesses needed strength in GBP Sterling... all this over and above Brexit!

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?

Both factors have been incredibly testing. The majority of consumers are looking for better value and our accounts are seeking improved margin, whilst inflation is driving up the cost of product so putting the squeeze on importers and producers alike. As ever, the onus is on us and our supply partners to come up with solutions… whilst we did manage to improve our supply chain infrastructure, enabling us to absorb a percentage of this year’s increases, the cost of product is now going up at a faster rate than before which will lead to further price increases next year.

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

Honestly, we despair at the way this government is behaving. I am unaware of a single individual in the wine industry that thinks the new system will provide benefit. It will add further cost at a time when we need support from the government not additional taxation and administrative pain.

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

Given the economic outlook for next year, coupled with what looks like ongoing industrial action, we are hesitant about making predictions for next year. Of course, we hope to consolidate our existing trade channels, whilst being diligent about costs but do hope to introduce our collaborative approach to new customers across all channels.

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

Sadly, I believe that certain channels will become more entrenched with regards to their lists/offering, with greater separation between channels and less diversity within each. Providing value in product, supply and service will prove key [set against the] reduction of consumer disposable income. I also believe premium brands will increasingly look at alternative routes to consumers/market. I find the latter an interesting prospect as the UK’s traditional and, in certain cases, staid landscape requires some change for long-term prosperity. The fact that rate of sale has dropped, coupled with the number of future wine drinkers (18-39) falling by 10% over the past decade, means wine needs to find new and engaging ways to promote itself.

Quick fire questions

Champagne or English sparkling?

Champagne

Cocktail or straight spirit?

Straight spirit

Riesling or Chardonnay?

Chardonnay

Pinot Noir or Bordeaux-style blend?

Bordeaux-style blend

Michelin starred or relaxed bistro?

Michelin Star

Desert island tipple?