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How Hatch Mansfield sees growth in 2025 despite fallout from duty

How Hatch Mansfield sees growth in 2025 despite fallout from duty

Hold on to your hats, we are in for a tough 2025 on the back of what Ben Knollys, managing director of Hatch Mansfield, describes “as the most challenging year in the 22 years I have been” at the company. Here he sets out, along with Fiona Mottershaw, Hatch Mansfield’s director of brand management, how the business is going to face up to the huge economic and legislative challenges ahead, starting with the roll out of the new ABV-driven duty system in February. But despite the difficulties, they are also confident it is well placed, thanks to its diverse portfolio and multi-channel strategy, to find growth and opportunities in the months ahead.

Richard Siddle
4th January 2025by Richard Siddle
posted in Insight,

Where were you in terms of achieving your commercial goals and targets in 2024?

Ben Knollys: In spite of the massive challenges that we have faced as an industry in the last year or so, on the back of the cost of living crisis, general cost price inflation, the massively inflationary 2023 duty increase and uncertainty around the Budget, our brands have largely performed well against target in most sectors.

Villa Maria continues to perform well for Hatch Mansfield particularly now it has switched its bottling to the UK

We continue to focus on all of our brands and our producer partners in all relevant sectors, with some key strengths. Particular highlights are: the the continuation of the leading New Zealand brand status by volume and value for Villa Maria, having successfully managed the transition to packing and bottling in the UK with all the environmental benefits that brings;the maintenance of the number one Beaujolais-Villages position in the UK from Louis Jadot; and some very strong growth on Errazuriz and our Chilean wine sales in 2024.

What were the key reasons for those figures?

Ben Knollys: Hatch Mansfield’s long-term, multi-sector approach to brand building, working collaboratively both with our suppliers and with our customers to navigate our way through these challenging times and always looking to add value through the supply chain via the services we offer.

We have always taken the approach that challenging times are an opportunity to keep doing the right things well, to keep adding value, and to try and grow our share even, or indeed especially, in a declining market. In a nutshell, a tight portfolio of very strong brands, long-term symbiotic customer relationships and a great team.

What are your thoughts going into 2025 and what you see as the big opportunities you can build on this year?

Ben Knollys: After what has arguably been the most challenging year in the 22 years I have been at Hatch Mansfield, 2025 promises to continue in the same vein. The huge legislative challenges with the removal of the duty easement and the uncertainty around the frankly absurd imminent EPR (Extended Producer Responsibility) legislation (which makes Scottish DRS look like a well-thought-out plan) and continued economic challenges will certainly not make for an easy landscape.

The Buyer

The launch of the first vintage from Domaine Evremond will be a key focus for Hatch Mansfield in 2025

However, with the solid base which we have maintained through 2024, with the impending launch of Domaine Evremond, our Kentish joint-venture with Champagne Taittinger, and with a positive, roll your sleeves up, can-do, collaborative attitude, I am actually pretty positive that 2025 will be a good year for Hatch.

Will you be actively looking to source lower ABV wines and if so what specific ABVs are you looking for?

Fiona Mottershaw: We are discussing the impact of the new duty bands with our suppliers and ensuring that they understand how these work. We are not actively looking to source lower ABVwines, but rather ensuring suppliers are working to mitigate alcohol levels where possible without compromising on quality.

Do you see any risks to the overall wine category if we see more lower ABV and questionable quality wines in the UK market?

The Buyer

Hatch's Fiona Mattershaw says it is working closely with its producers to work through the new alcohol duty plans but will not be looking to source lower ABV wines


Fiona Mottershaw:The wine category is contracting in the UK and we are already seeing consumers express frustration at changes to brands they buy regularly. Maintaining choice is key, but the UK duty regime means it is increasingly difficult to produce a quality wine at accessible price points.

Do you also see opportunities and ways in which you can help and support customers with these changes - If so how?

Fiona Mottershaw: We are working with our suppliers and our customers to continue to provide compelling quality wines that deliver great value at their price points. The ability to reward customer loyalty at regular intervals during the year with carefully planned promotional mechanics is key to ensuring we retain their interest.

* You can find out more about Hatch Mansfield at its website here.

* Hatch Mansfield is a commercial partner to The Buyer.