https://drive.google.com/open?id=15gNNib3Zzz5MhYI4wCZEtytSU3pxJgY-
The importance of the UK cannot be
underestimated. The UK is at the heart of the global wine industry. We are the
5th largest economy worldwide, the sixth
largest wine market in the world and the second largest trader in wine by
volume. The UK accounts for nearly 15% of the world’s wine imports. We consume over
15 million hectolitres of the stuff. The Wine
and Spirit Trade Association attributes
£17 billion of economic activity in the UK to wine.
No mean achievement for a small island
nation. As just one of 28 EU member states we have certainly caused some
turmoil. We punch well above our weight, as we have done for centuries, so I
pose this question to you, why should we be afraid to go it alone? Certainly
there are a number of reasons for concern, but I am an optimist, a glass half
full person. I believe that if you think the worst will happen, eventually it
will. We are the engineers of our own destiny.
Since the Brexit vote almost exactly two
years ago, one could be forgiven for thinking that politically the UK is in a
state of disarray. It is, and it is not helpful.
There has been a significant amount of
negative publicity, largely promulgated by Remainers unable to accept the unpalatable result
of a democratic vote. Despite the predictions of doom and gloom from the
pundits we know all too well how frequently they get it wrong. In 1977, Ken
Olsen, founder of the Digital Equipment Corporation Said, “There is no reason
anyone would want a computer in their home.” Who predicted 9/11, the financial
crisis of 2008, or the election of Trump as President?
What is really having an impact is the
current uncertainty, which is fuelling fear, resulting in an aversion to risk;
an unwillingness to take any chances; a wait and see game, and it is the end
consumer that suffers. Those in the business of making and selling wine know
all too well just how unstable an industry it is. But, we cannot continue to
make decisions based on fear and what might or might not happen. Uncertainty is
uncomfortable but the notion of certainty is absurd.
Of course, good news does not make
headlines. Yes, we are drinking less wine, but what is not widely reported is
that revenue has increased.
For me, twice divorced myself, but still
hopeful of finding a third husband, Brexit has all the hallmarks of a bitter
marriage break up. One partner wants out and the other is determined to punish
them as a result. In the end both parties, and any offspring, are the ones that
suffer; the only ones making a killing are the lawyers, at the expense of those
involved in the UK wine industry, and
consumers. Of immediate concern to the UK industry as a whole in the UK
has been the impact on labour, which in recent years has largely been from
Eastern European countries. Then of course there are those subsidiary
industries such as transport, storage, wholesalers, retailers, both on and off
trade.
There is no doubt that when it is all
done and dusted (and the bets are on as to whether or not we will actually
leave) there will be an impact in the wider context, but we do not have to sit
back as placid bystanders with a victim mentality.
In considering the strengths and
weaknesses of the UK wine industry we do not need to be conscious of both
internal and external threats to stability and growth but it is evident that we
must focus on maximising our opportunities and capitalise on those unique
characteristics that make us as so special.
At long last UK vineyard owners
have got their act together and we are now seeing a greater degree of cohesion
in their approach, both with regard to their ability to lobby the industry as a
whole and also in relation to marketing activity, which until now has largely
been spasmodic and uncoordinated. Much of this has been pioneered by the likes
of Ridgeview, Nyetimber,
Camel Valley, and my local vineyard, Wayford, whose wines have gained international
recognition; and not before time.
30 years ago, when overseeing the official
entertaining for the British Embassy to the UN, my attempts to promote
British chefs, products and wine were met with derision and incredulity, until
I appeared on the front page of the New York Times. This is no longer the case
and we can hold our heads up high.
Brand Britain is much sought after and
despite high production costs our premium sparkling wines are much sought
after. Far from seeing a slump in investment, in recent months both Pommery and Taittinger have
invested in UK vineyards. We are seeing a shift towards quality over quantity.
Whilst future trading arrangements with the EU still unclear that is no reason
to stand still.
Our wines are never going to compete with
the bland New World wines filing our supermarket shelves, but neither should we
want to.
When taking into account the way in which
consumers buy, there is always the danger of assuming that price is the key to
success, and moving straight to the purchase based solely on price. This is a
common trap that those wanting to make a quick buck all too easily fall into.
You may make a sale the first time around, but you should be aiming for repeat
business, and increased exposure to new markets. This can only be done by
active engagement with the end user, in a meaningful way, responding to their changing
needs. This is not rocket science, but it does take time and effort and is not
achieved by churning out the same bland products in the same old way. The world
is changing and if we do what we have always done, we will not get what we have
always got. We need to give customers a reason to buy from us.
There are really only a handle of reasons
that anyone will buy anything, including wine. Although price is an important
factor, it is just one of many. In the UK the average price of a bottle of wine
now hovers at around £6 and is on the rise. but we buy the things we do for a
variety of reasons.
How many of us have set ourselves a budget for something, a
house, a car, a holiday perhaps, and exceeded that budget because we wanted it
so badly? We all have at some point in our lives. If price really is the issue
you may well settle for a bottle of supermarket ‘special offer’ plonk. If there
is nothing to drink in the house and friends drop by you may well pop to the
local corner shop (yes, we do still have them) and pay over the odds for a
bottle to save time.
On a girls’ night out, what better way to get in the mood
for a good time but bubbles, which accounts largely for the rise in Prosecco
sales in recent years. However, the Prosecco loving crowd will eventually grow
up and move on. Sales of Prosecco are already on the wane as demand has
exceeded quality supply and the market has become flooded with inferior
products. Want to make someone look good and feel good for a special birthday
or treat? Then you might be inclined to push the boat out and spend a few extra
pennies on something individual that you know they will enjoy.
And finally, the
money no object, out to impress purchase, Penfolds Grange perhaps, Opus One,
Petrus, or a bottle of Krug. I have always been a Champagne girl myself. It is
only by understanding our customers’ needs, at that particular time, that we
can make them want to satisfy that need with what we have on offer.
On the subject of price, much is made of
the rise in prices as a result of Brexit, but scant regard is paid by the
average consumer to just what it is they are getting for their fiver. We in the
industry know the difference, but what are we doing to educate our customers?
Or is it just that we choose not to?
So, we have come full circle. In 1973,
the year that the UK entered into what was then the European Economic
Community, I was 19 years of age. Like many of my generation, I was just waking
up to the joys of a glass of wine, usually with a meal. The choice on offer was
largely limited to a handful of off dry whites, with a bottle of chianti, in
its straw basket, or a bottle of Claret, reserved for a special occasion, and
ordered by a man. Here we are then, in 2018, when wine drinking has become the
norm in the UK, (watch out though for the trend in designer gins). In all but
the most serious restaurants, we are still offered a dumbed down version of
wines to suit the profit margins of the greedy shareholders, who pick their
wine lists from a limited range on offer by their wholesaler. The only
difference being that now we order our glass of wine by grape variety, with
little thought for any food pairing. Who cares where the wine was made or by
whom? It is Merlot or Sauvignon Blanc so it must be OK. Indifferent wine that
is served by untrained, poorly paid staff, who neither know nor care. Oh, and
yes, it is served in either 175ml. or 250ml glasses, despite the law requiring
125ml. to be offered, what used to be considered a normal sized glass of wine.
We really are missing a trick.
There are at least two things that we can
agree with on Brexit. Firstly, nobody has any real idea of what is going to
happen next. Secondly, we are self-indulging in the ‘blame game’, often using
Brexit as the excuse for those head line grabbing events that dominate the UK
media.
Since the vote in 2016, on the one hand Brexiteers have been dredging up
any positive economic data they can get they hands on, in denial of the doom
and gloom predictions, whilst Remainers keep their focus on the declining value
of sterling as more proof of the foolhardiness of leaving.
The wine business
has been as guilty of indulging in this pre-emptive ‘blame game’ as anybody
else. For those in the industry this may make for a painful reality check. We
can stay stuck in the rut of mediocrity or we can take action to get out of it
by ensuring that those who represent us, and our wines, are well trained, well
informed and passionate about imparting that knowledge to those who after all pay
they wages – the customer.
I leave you with the words of a prominent UK
hotelier – ‘I no longer chase ratings but when we did, I used, and still
recommend, ex senior hotel and restaurant inspector Linda
Piggott-Vijeh for gap analysis. She is scarily straight, incredibly
passionate, takes no prisoners and is ultimately very productive.’ Attitude IS
everything.
© Linda Piggott-Vijeh June 2018.