More on wholesaling
Wine is a profitable part of a pub's offering if marketed in the right way.
Pub chain Wizard Inns is best known for its cask ales. But 18 months ago it turned its focus to wine - and with the help of wholesaler Coe Vintners its sales have expanded from six per cent of takings to 10 per cent.
The switch to a specialist wine merchant from Wizard's previous wholesaler, Tavern, was related to the rise of food in the company's sales mix.
Most Wizard investment in the last two or three years has been in the development of contemporary, stylish female-friendly café bar-style outlets. Having a decent, interesting mix of wines, with the onus on the New World, has become increasingly important while Wizard's innovative promotion that invited customers to buy two 250ml glasses of wine and get the rest of the bottle free has helped drive sales.
Coe Vintners approached Wizard in 2000. "We were convinced that Coe could offer Wizard a good deal in terms of quality, prices and above all service," said sales director David Gunton.
"We still hold the view that our two companies are an ideal fit. We are both growing steadily at a sustainable rate and our geographical spheres of operations are very compatible."
The feeling is mutual. Ed Heaver, commercial manager of Wizard, says: "We have developed an excellent working relationship with Coe which is really paying off in terms of increasing our wine sales.
"It is a small company but the level of service is second to none and this, allied to its specialist knowledge and understanding of the pub market, particularly the London area, has made it the ideal partner.
"Coe provides us with dedicated support and is highly proactive, two things which we believe are highly important and beneficial, and something that sets it apart from other wine companies."
A number of activities devised with Coe have helped make wine an increasingly frequent bar call in Wizard's pubs and bars.
Most focus on New World wines, the list carries accurate, easy to understand descriptions and there is a choice of a 175ml or 250ml glass across the whole range. Table service, which the pubco operates in most of its outlets, has boosted sales by adding an element of theatre in the serving, particularly when people order a bottle.
Wizard runs a Wine of the Month promotion and the best performers are added to the menus. More recently it has introduced a twice-yearly sale of bin ends, giving customers the chance to buy and enjoy a good bottle of wine for £6.50 or two for £11.
Since the summer, the company's acquisition of the cream of Regent Inns' unbranded estate, topped by jewels such as the Fire Station at Waterloo in central London and the Red Lion Hotel at Wendover, has opened up a whole new market for Wizard and its wine supplier.
Higher quality wines are being introduced into these pubs as well as at Wizard's most successful food-driven developments, such as the Autumn House bars in Hammersmith and Finchley, and the Anglers at Walton-on-Thames, Surrey.
Wine sales at the Red Lion already represent 30 per cent of liquor sales.
