Looking Back, Forging Ahead Q&A: Sam Thackeray, Amber Beverage UK

By Andrew Catchpole

Published: 01 December, 2023

Following another eventful year for the drinks trade Amber Beverage UK’s CEO Sam Thackeray kicks off our annual Q&A series, reflecting on the highs and lows of 2023, plus hopes and plans for the business in the year ahead.

How has business been for you across 2023?

On a personal level, I moved to Amber Beverage UK (ABUK) in January 2023 which has adjusted my perspective on the UK trade, with more focus on spirits categories than before.

By any measure, 2023 has not been easy for the drinks business in the UK: we have been plagued by strikes, inflation, cost of living, staffing shortages and the single biggest alcohol duty increase in 50 years. The IWSR predicts a CAGR of -0.9% for spirits through to 2027 in the UK with multiple spirits categories hit much harder than that.

That said, relative to 2022 (or 2019, for that matter) I’m conscious that the UK is weathering this perfect storm with remarkable resilience, relative to Europe and other comparable markets. We are still a strategic priority for many global brand owners, and the UK is a proof of concept for up-and-coming brands.

What, for you, were the specific highs of 2023?

For ABUK, the focus of 2023 was integrating Amber Beverage UK and Indie Brands, which entailed a lot of operational and systems redesign. As arduous as that process was, one of the real highs of 2023 was taking all teams across the business on that journey, showing them the vision of what the new ABUK will be, and seeing their excitement as we brought that to life.

One of the most significant elements of integration was consolidating the portfolios of ABUK and Indie Brands, which meant that we had to part ways with a large number of brand owners. While making those choices wasn’t always easy, it has been incredibly rewarding to see our teams, the brand owners we are keeping on in the portfolio and our customers all respond so enthusiastically to the renewed focus of the future portfolio.

Of course, a big high has been spending time with the brand owners who have either visited or hosted me and my team, sharing their stories, provenance and superb products with such infectious passion. There are too many to name, but special thanks for the warm welcomes go to Rooster Rojo, KAH, Mosko, Stoli brands, Faustino and Portia, Luxardo, American Beverage Marketers, Fortaleza and Arran.

And the lows?

Undeniably, hospitality has struggled this year. There is a range of reasons for this, but it has been painful to see wider events in the UK, such as strike action, causing collateral damage to the sector. Cynically, this has a commercial impact on a business like ABUK, but it has also been upsetting to see an industry I have been involved in for over two decades fighting so hard to recover from the devastating years of lockdown, and yet continue to be confronted with ever more challenges.

How much of a concern are the duty hikes? Will you have to alter the way you do business moving forward?

As a distributor, our scope for reacting to duty hikes and changing how we do business in response is fairly limited. Duty hikes are frustrating for consumers and result in worse choice, but we sell a demerit good; alcohol is an easy target for government revenue, and we just have to get on with it.

As a business, what goals have you set for 2024 and how do you expect to achieve them?

Having operationally integrated ABUK and Indie Brands, it is incredibly important that next year we hammer home what the new ABUK stands for in the minds of our customers and the broader trade: we strive to be the UK’s leading sustainable brand owner and distributor. We’ve got awesome brands that really deliver on story, provenance, quality, and add value for customers and end consumers.

I’m extraordinarily excited to welcome NPD into the ABUK fold next year, including new SKUs from existing brand owners, as well as entirely new brand owners. Each of these has been through our rigorous NPD selection process, and we believe each new addition fills a specific niche (either in our portfolio, or within the wider UK drinks space). Articulating our vision behind each of these products will be important for next year, as well as landing them with the target customer universe. Watch this space…

Finally, ABUK outlined its Sustainability Pledge and Sustainability Roadmap in October 2023. At Enotria&Coe, I was pleased to support the Harpers Sustainability Charter as I believe this topic is absolutely paramount to the UK trade. Not only because it is increasingly a criterion for UK decision-makers on which to evaluate their suppliers, but because it is unequivocally the right thing to do. Having joined ABUK, I am more conscious than ever that sustainability is a journey, and that what good looks like will change over time, so we need to be agile and commit to a continuous cycle of assessing our strengths and opportunities across environmental, social and governance credentials in order to improve. While we have made some great progress this year, in 2024 I want to focus on educating our teams and suppliers about this journey to support future compliance and pride in what we are working towards.

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

Much of that depends on the UK’s tumultuous political and economic situation next year.

There appears to be an interesting juxtaposition between a retreat to safety in the off-trade, whereby consumers double down on better-recognised brands, and greater experimentation and willingness to explore in the on-trade, where theatre, storytelling and memorable interactions are encouraging a premium spend.

If the macroeconomic situation remains challenging, I would expect to see more emphasis on the off-trade with the pattern of behaviour favouring established brands and more at-home drinking. To service this market, I anticipate greater digital participation from the large multiples, offering a wider selection of products than available at brick-and-mortar stores combined with the convenience of home delivery. The on-trade will need to respond with bravery – creating value and engaging with products that provide guests with all the good stuff: story, provenance, quality, innovation, and fun.

Quick fire questions:

Champagne or English sparkling?

Either, so long as it’s Blanc de Blancs.

Cocktail or straight spirit?

I’m having a bit of an agave moment. House cocktail is currently a KAH tequila picante.

Rioja or Mendoza?

Rioja, ideally Faustino Gran Reserva.

Orange wine – yay or nay?

Orange wine is like chemical weapons: something I wish we could disinvent.

Michelin-starred or relaxed bistro?

Relaxed bistro.

Desert island tipple?