Looking Back, Forging Ahead Q&A: Euan Mackay, Fells
Next up in our end of year trade talking heads is Euan Mackay, MD at Fells, reflecting on the ups and downs for the trade and some of the successes for this importer as it heads into the new year.
What have you put in place to maximise Christmas trading and what are the early indications so far?
Christmas, and the period running up to it, is a key time of the year for our customers. So, our teams are busy out in the market supporting them as much as we can with tastings, wine dinners and other events.
With almost 40% of Port being consumed in the last eight weeks of the year, we are running a series of consumer activations across the country designed to highlight the diversity of the category. In addition, we have set up retailer initiatives designed to maximise the visibility of our brands with offers that we hope will resonate with consumers.
Early indications are generally encouraging, although it seems that many consumers seem to be leaving their preparations to the last minute.
What, for you, were the specific highs of 2024?
2024 has been my first full year as MD of Fells and it’s certainly been a busy one with several significant achievements that are very pleasing.
In terms of portfolio, we were delighted to welcome Royal Tokaji and Copenhagen Sparkling tea to our collection of world-leading family producers. It has been very exciting and gratifying to see how well these two very different producers have integrated themselves into our portfolio, bringing new opportunities for our customers.
In May, we hosted the UK’s first ever Vintage Port Day with the Symington family, an event that brought together an audience from all sectors of the trade. This was followed by Torres’ involvement at this summer’s Pub in the Park events and Yalumba’s continuing support of the Frieze contemporary Art Fair in Regent’s Park.
We’ve ended the year on a high with a double trophy win for our premium South African producer Vilafonte, winning the Outstanding Wine Producer Trophy as well as the Red Wine Producer Trophy at the IWSC awards in November. This event also saw our Champagne producer, Henriot, taking the Sparkling Wine Producer Trophy as well as the Blanc de Blanc Trophy at the Champagne and Sparkling Wine World Championships in September. We offer them both our congratulations.
And the lows?
We are particularly disappointed that the new government did not heed the advice of the industry, despite all our efforts, which will result in the removal of the Duty Easement as well as an additional increase of 3.65% in duty as from Feb 2025. These increases will not only mean higher retail prices for the consumer but will also add significant complexity and costs to an industry that is already facing significant challenges.
It is also concerning to see that fine wine sector of our industry, an area that has always shown resilience in the past, has been particularly badly affected this year.
How have the specific challenges of this year contributed to wider drinks trends?
Whilst we recognise the need for us to provide No and Low alcohol options as part of our wider offering, we believe this should be part of a balanced approach. We are particularly concerned that initiatives such as Dry January and Sober October could portray an overtly negative view of our industry, unless they are countered by other initiatives that highlight the more positive effects of drinking in moderation.
With the easement likely to end in February, how are you looking to mitigate the impact of rising duty on business?
In truth, there is very little we can do. This will add significant costs to nearly all the wines that we sell. We will, of course, continue to seek efficiencies where possible and endeavour to offer great value as well as the best possible customer service – but beyond this our options are somewhat limited.
As a business, what positives are you looking forward to in 2025?
Despite the current headwinds we remain cautiously optimistic about 2025. We are hopeful, as an industry, that the government will provide us with more clarity regarding the implementation of the EPR (Extended Producer Responsibility) scheme, that will unfortunately add significant additional costs to a bottle of wine. We also hope that we will see a resurgence of the Fine Wine sector and a generally more stable trading environment.
We will begin the year with one of our leading brands, Oxford Landing, sponsoring the Lions Tour to Australia, an initiative which has seen the biggest ever programme of support for the brand here in the UK. This includes specially branded bottles featuring the sponsorship that will begin to appear on shelf during the first weeks of 2025 – so a positive start and something to look forward to.
We are also looking forward to welcoming a few additional partners to the portfolio, that will continue to underpin Fells reputation as a home for premium family-owned producers in the UK.
Quick fire questions:
Ultimate turkey pairing wine?
If I were to be having turkey this Christmas (I am afraid we like to stick to the tradition of beef on the 25th) I would be enjoying a bottle of Two Paddocks Last Chance Pinot Noir from Central Otago, New Zealand.
Ultimate turkey of the wine world?
I would have to go back to my days living in France, when I ended up by drinking rather too much of a red ordinaire sold in a 1L corrugated plastic bottle! Never again…
Most overrated spirit?
Non-alcoholic gin.
Most underrated spirit?
Armagnac – the world’s oldest brandy. It all came to life when I had the opportunity to share a wonderful glass of 1967 Janneau Armagnac with Serge Dersahaguain of Janneau earlier this year.
Chardonnay or Riesling?
Chardonnay, for its true ability to adapt to different terroirs and different climates.
Port or sherry?
Having dedicated over 25 years of my working life to Port, I think that the answer is fairly obvious!
R(h)um or Tequila?
Rum, although my wife’s vote would go for Tequila.
If you were type of drink, what would you be (and why)?
1970 Vintage Port, well balanced and with plenty of energy and life remaining in it – do I need to say more!
Keywords:
Search
56-58 Church Walk, Burgess Hill, West Sussex, RH15 9AN
Registered in England No. 6646125. VAT No. 938 4452 95
