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Julian Momen: ‘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?

Very busy! There has been a lot going on here at Enotria&Coe over the course of the first half of 2024. We’ve embarked on some important changes to allow us to better focus on core activity, whilst driving a significant improvement in delivery performance. On the latter we have made giant strides in delivery metrics, on ‘how we show up’ and ensure the customer receives best in class service right through the value chain. In addition, we have restructured various parts of the business to get better alignment on what’s important and how we better ourselves in the eyes of those inside and outside the company. In particular, this means how we can better support customers with more specialist teams, working to our strengths and delivering an even better service.

• Read more: Andrew Bewes – ‘Looking Back, Forging Ahead’

As a relative newbie, I have spent enough time with producers to know what it is to represent some of the best wineries in the world. In February we held our Annual Tasting attended by over 1,000 people from the trade enjoying wines and spirits from 150 producers. It was an incredible success and delivered with such professionalism by all of those in support. Then in March I attended my first Prowein and was blown away by the incredible deep-rooted authenticity of the partnerships we have with so many of our producers. Our continuing appreciation of the support we receive on so many levels is difficult to put into words. We are very grateful for their trust in Enotria doing a great job for them.

Finally, I can only tell you what people tell me in the business, which is we have moved on into a new place. It sometimes feels like a slower pace than we would all like, but cultural change which comes with a mindset change is the most difficult challenge any business embarking on transformation has to grapple with. We are getting there.

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?

For sure we can see the impact of the cost-of-living crisis. We’re not alone: much of the hospitality industry continues to feel it. The effect appears to be varied across different sectors. Our premium wines are holding up reasonably well, while some level of de-premiumisation appears to be happening within some sectors as consumers are making choices to spend less and drink less.

In honesty, it’s tough to read the full extent of the market dynamics, other than to say there is cautiousness out there. Our response is to take advantage of what’s in our control. We supply across a wide variety of different sectors and price groups, so it has been important that we can continue to provide a balance between great quality and good value. I am full of admiration for our team, who use their skills and expertise to curate wine and spirit offerings from our portfolio while taking into account what’s happening out there and the impact it has on our customers. Since we have a tremendous and exciting choice of exclusive wines and spirits, we do enjoy having an array of options to suit.

What are you most proud of achieving this year? Have you managed to achieve any specific goals?

Whilst I am incredibly proud of everyone who has supported the changes within the business, there are three particular areas which stand out. Firstly, our customer delivery performance has turned itself around in a very short space of time with everyone from customer services, warehouse and transport playing their part. Then we have the ‘Vitis’, my cultural transformation team, which has created and rolled out a set of values and behaviours for our new vision. And lastly, all those who support our front-line sales team to ensure they are able to excite our customers and consumers. Every function in the business continues to play their part in making sure we deliver on our mission.

And what is the biggest cause for concern?

As I always say to the team, it’s important that we ensure our destiny is in our own hands which means we need to create and take the opportunities, mitigate the risks and operate with speed and agility to changing market conditions. So we are working hard in difficult times where the hospitality sector is under so many challenges, whether that’s inflation, lower consumer spending, increasing costs or lack of suitably qualified or available staff. It feels like we could do with some good news in support of growth, but for sure that won’t come if the sector gets lumbered with even more duty increases or indeed if business is shackled with undue labour restrictions. What will be important then is how the new government supports our sector’s growth.

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?

It would be horrific, no doubt in my mind. I would like to think someone in the new government can see through what might feel like immediate duty income gains and consider the far greater downsides of abolishing the easement. The result would be higher prices leading to adverse consumer reaction and lower sales volumes. It would also mean a less attractive market for producers, greater bureaucracy in monitoring and more internal costs to be able to make it work (and this in turn would lead to less profits, lower tax payments and receipts for the Treasury). The new proposed tax regime would be a hugely complex process and logistical nightmare, when right now we are all battling to revive the market. It does not make good reading. What is required now are more positive actions to help the sector turnaround the current poor market conditions.

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

Sustainability is understandably still a hot topic. Glass bottles are the single largest contributor to the carbon footprint of wine as a product, so finding environmentally friendly, alternative packaging is a key trend for the trade and consumers. Formats include kegs (especially for by the glass listings), or premium bag-in-box options, because they fit in fridges and are more cost effective.

The rapid growth in the low & no category also shows no sign of abating. Following last year’s duty increase, and the new tax regime set to go live in February 2025, the trend for lower alcohol is becoming ever more prevalent. It is very easy to look to adulterated examples of de-alcoholised wines and spirits or those forged to unnaturally low alcohol in an otherwise generous climate. However, non-alcoholic drinks which are not trying to simulate a spirit are also attractive to consumers and might be considered in some cases to be higher quality than dealcoholised versions. Also, wine regions which naturally produce lower alcohol should be a focus: the still wines of the UK and Germany, and of course the Vinho Verdes of Portugal. Our new Portuguese partner, Aveleda, brings a best-in-class expression under several different guises, from the entry point Fonte up to the single vineyard Solos wines.

Any predictions for the second half of the year? None, it’s all too unpredictable. My hope is that the optimism which we can see and are starting to feel is not wiped out by new guidelines, restrictions or policy changes with direct impact on consumer confidence.

Quick-fire questions…

France, Italy or Spain? Spain for red, Italy for white, France for rosé. 

English fizz or Champagne? English fizz – great to keep discovering new innovations

‘Normal’ or ‘natural’ wine? Normal

Brown or white spirits? White

Mixologist or mix it at home? Mixologist – there are so many great products out there and I would like to think our exclusive agency brands bring something exciting in this space

Sharing plates or structured meal? Sharing plates – if everyone else is doing the same!

Post-prandial preference? Hmmm, it depends on what I’ve eaten, who I am with and what’s on the next day

Desert island treat? Whenever my team tell me to try something new, the recommendation never disappoints. We have so many exciting wines and spirits from so many brilliant producers, it’s an absolute pleasure to try something new every week.

However, if I were to choose my Desert Island wine, The FMC from Ken Forrester is iconic (and best decanted as per Ken’s advice), or the stunning Barolo Cannubi from Chiara Boschi of E.Pira – the only female winemaker of the original Barolo Boys. And I love Paco De Carraovejas Anejon – one of my favourites.

• Enotria & Coe
• Julian Momen
• Looking Back Forging Ahead