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Andrew Bewes: ‘Looking Back, Forging Ahead’

How has business been for you in the first half of 2024 and how do things compare to where you were last year?

If last year was ‘solid’, this year has been explosive. Since changing ownership in December 2023 and joining Coterie Holdings, we have been growing rapidly with major new customers, new suppliers and many new faces across the Hallgarten team which has grown from 100 to 125 people over the past six months. 

It would be naive to ignore the market forces which have indeed been tough, particularly in Q1 which saw like-for-like business suffering in both the on and the off sectors. But this is exactly where we aim to add value to our customers in helping them to be agile, working with them and their teams to evolve their wine selection.

• Read more: Hospitality faces potential outdoor smoking ban

How has the cost-of-living crisis played out across the year and what – if anything – have you been able to do to mitigate that?

We have certainly seen the cost-of-living crisis directly impacting the hospitality and retail sectors (the market stats speak for themselves) and, closer to home, the Hallgarten business has also seen internal costs rise as employees have struggled to manage very real cost-of-living pressures. To help mitigate the effects, we have looked to support our team wherever we can.   

Last year saw the combined impact of punitive rises in duty and high cost rises from around the world and it was difficult for us to shield our customers from this. This year has been a little more benevolent and we were therefore able to all but hold prices (certainly under inflation) across most of our portfolio – something which was gratefully embraced by our customers. Our depth of range includes price-fighting wines and focuses on value for money at all levels, and this has enabled us to work proactively with customers to ensure that their wine range works for their business and, just as importantly, their customers. We have also placed great emphasis on front-of-house training and wine list construction to help customers ensure they maximise sales and profits in these tough times.

What are you most proud of achieving this year? Have you managed to achieve any specific goals? And what is the biggest cause for concern?

I am extremely proud of how my team handled the news of the sale of the business and transition to Coterie Holdings. With any change, there is always a degree of uncertainty but, in our case, any uncertainty quickly turned into excitement as they realised the opportunities that lay ahead for the business. 

I also take massive pride in how the team has managed the surge of new business in the first half of 2024 whilst maintaining our extraordinary service levels (our on-time deliveries sit at over 98% and we have had 98.5% stock availability over the last 12 months), assimilating a larger portfolio and welcoming many new colleagues to Hallgarten.

Specifically, what will be the likely impact on your business of the planned end of the temporary easement on wine duty on 1 February 2025?

Firstly, we remain hopeful that the new government will see sense and abandon the decision to remove the temporary easement. We will continue to campaign on this front, as will Michael Saunders, Coterie’s CEO. 

Earlier this year, we established a project team to evaluate the impact the duty changes will have on our business and on our customers. With the ramifications of the duty change set to be far-reaching, our first objective was to identify the holes it creates in our range and then set our buying agenda to ensure that we cover these gaps. We are now focusing on how we and our customers manage the potential monthly, or weekly, price changes. Whilst the price change is straightforward enough for distributors to implement, it is very tough for hospitality customers, many of whom have set their prices for up to 12 months and print their wine lists. We then need to set-out a full communications plan, ensuring our customers are fully cognisant of what is coming and how we can help them manage the situation.

What are the biggest drinking trends at the moment, and how do you expect that to change going into the autumn?

More than ever, we are seeing a drive towards sustainability in all areas; not just in terms of production and the range, but also sustainability from the wine importer. It is incredibly important for businesses to show they are being sustainable and ethical, and this will only continue to grow in importance in years to come.

On World Environment Day 2024, we released an updated version of the Hallgarten Eco Standard, setting out what our supplier partners and ourselves have achieved from a sustainability perspective in the past 12 months. Now in its second year, the Standard has been developed to cover all aspects of sustainability associated with its supplier base, encompassing practices in the vineyard, the winery and in the overall management of the producer’s business.

Any other predictions for the second half of the year?

Looking at wines specifically, this summer we have seen an increase in demand for premium rosé from European countries such as Italy and Greece. This is in conjunction with premiumisation across the wine category, with the trend for ‘less but better’ coming to fruition across the sector.

Quick-fire questions…

 France, Italy or Spain? A tough one and my Italian blood takes me firmly in that direction, but Spain really excites me at the moment, from every perspective

English fizz or Champagne? English fizz – there are so many great reasons to look close to home

‘Normal’ or ‘natural’ wine? ‘Normal’ wine (whatever that is!)

Brown or white spirits? Brown. Sometimes a wee dram hits the spot

Mixologist or mix it at home? At-home bar… nothing quite like experimenting yourself.

Sharing plates or structured meal? Both, but the experiential aspect of sharing plates is utterly compelling and also helps eradicate ‘selection envy’

Post-prandial preference? A glass of something sweet

Desert island treat? A dirty burger and chips

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• Andrew Bewes