The Wine Merchant Media Pack 2023 THE WINE MERCHANT. An independent magazine for independent retailers
Issue 114, June 2022
Trophy winners announced: see page two
The Secret Cellar’s future is now in the hands of its staff Employee Ownership Trust means that the Tunbridge Wells-based business will be run for the benefit of its team
T
he Secret Cellar, the independent merchant with four branches in Kent and Sussex, is now in the
ownership of its management team.
Former owner John Winchester has
created an Employee Ownership Trust,
loaning the staff money to buy the business over a five-year period.
The trust also includes the wholesale
division of the company, Milton Sandford Wines, based in Berkshire.
Winchester, who is retiring but remains a
were initially cautious about the EOT and
Fourteen employees have benefited from
allayed when the details were explained.
trustee, believes the deal is a better option for staff than a sale to an outside bidder.
the EOT and will be able to receive tax-free
bonuses of up to £3,600 a year. They would also be able to cash in on the value of their shares should the company ever be sold in whole or in part.
Adam Clarke, now managing director
of the Secret Cellar business, said staff
had concerns about implications for the stability of the company, but these were
“I see it that the staff decide the direction
of the company and how we want to take it forward,” he says. “After all, it is the
employees that benefit from any profits in the company, so have a vested interest in making it a success.
“I’m hoping we can push both parts of
the business to even greater success in the
next few years, sell more wine and increase our customer base.”
Clarke is hopeful that even in uncertain
economic conditions, The Secret Cellar
can remain profitable and even consider expansion. “I’d like to think that we can
grow The Secret Cellar beyond the current footprint – the direction of travel could
take us anywhere,” he says. “The current climate may mean growth takes a bit
longer, but we need to look at all areas of opportunity.”
Winchester believes the EOT model
could be suitable for other wine trade Free samples from suppliers and free tickets for wine lovers make for memorable Wednesday evenings at Specialist Cellars in Brixton. Find out more about Melanie Brown’s bright idea on page 11. Only about half of revenue comes from walk-in custom
businesses. “If you are confident in the
future of the company and the people, then an EOT is a useful vehicle to consider,” he says.
• Analysis, pages 8 and 9.
THE WINE MERCHANT. An independent magazine for independent retailers
Issue 113, May 2022
Dog of the Month: Cleo Museum Wines, Blandford
How can we compete with Wine Society free delivery? Independents look for ways to reduce courier costs as their number one competitor drops its shipping charges
T
he Wine Society has dropped all
in Great Horkesley, Essex. “How can anyone
companies whose who put these
problematic for independent merchants,
problems obtaining competitive rates from
multiples.”
delivery charges to its customers in a move that could prove
who are already battling to mitigate rising costs.
“They’re the new Amazon of wine,” says
Anthony Borges, owner of The Wine Centre
compete?”
Borges says small businesses like his face
couriers. “Either our turnover is too small
and the big boys just aren’t interested – or
alcohol and liquids are prohibited,” he says. “The strange thing is, the same
limitations on their courier services seem to be distributing for the major drinks For more than 20 years, Borges has
used a local courier, Tendring Express, a franchise of the national APC network.
Although Borges argues that its rates
were higher than he would like, “I lived
with it, since website sales were always small”.
He adds: “However now, with the new
website, and the increased effort in making it work better for us, I feel a stronger need to be more competitive with our courier charges.
“We charge £9.99 per address, up to
45kg. On small packages of one or two
bottles we make £1-£2 profit. Obviously
we make more on 12 bottles because of the increased margin in cash terms.
“A £9.99 charge on a small £30-£50 gift
is too high – we know that. But we have no
choice because of our high costs. Even on a case of wine of £120-plus it is considered high. We know for a fact we have lost Hugo Meyer Esquerré’s Provisions business – a combination of wine shop and deli – has opened its second branch, located in Hackney, north London. Read our interview on pages 22-23. Only about half of revenue comes from walk-in custom
custom because of it.”
Borges is hoping there could be a way of
indies pooling their buying power to obtain better courier rates to compete with larger players like The Wine Society.