Lanchester Wines rounded off the year by winning the IWSC Green Wine Initiative award - for the second year running - so that must have put a spring in your step as 2024 draws to a close?
I think a big moment for Lanchester Group has been the wine trade realising that sustainable practices need to be a part of everyday business. We’ve been banging that drum for years: we started with installing wind turbines over 10 years ago and we have been increasing the extent of our environmental sustainability ever since; with solar power, then, this year, the new Greencroft Bottling facility (Greencroft Two) and, most recently, being the first in the UK market to use the new Verallia 300g ultra-lightweight bottle.
The Lanchester Group's Greencroft Bottling business has long been at the forefront of sustainability which has seen it open a new state-of-the-art facility - Greencroft Two
Around 80% of our wine is transported as bulk and packaged at Greencroft Bottling so it has already made a really positive difference to our own footprint.
But as we have said for some time now, being carbon neutral is just the beginning. So 2024 has been a big year and seeing our hard work recognised with the IWSC Green Wine Initiative award has been a fantastic way to end 2024.
What about your suppliers? Are they expected to play their part too?
Yes, absolutely. All of our wine suppliers have their own sustainability criteria in some form. Not everybody can do what we can, but whether it’s their planting practices, geese or lambs in the vineyards, water saving, recycling; you name it, they all play their part. The most important thing to remember about sustainability is there’s no ‘one size fits all solution’, so every business (and person) needs to look at what they, specifically, can do. Everyone is expected to do their bit.
Bulk wine used to be almost a dirty word, despite its obvious environmental benefits, but in your time buying wine, have you seen a shift in attitudes towards bulk?
Oh yes, you bet. We trademarked the phrase ‘boutique bulk’ years ago, to try to change attitudes, to capture the essence of quality, and ensure it was no longer a dirty word. And I am delighted to say that attitudes have just completely changed, with the trade recognising that quality is every bit as good, if not better, when wine is shipped in bulk and bottled here in the UK.
There has been a rollercoaster in global wine supplies in recent years, dealing with a glut one year, then a shortage the next, due to vintage conditions in various parts of the world. How has 2024 been in terms of supply and demand?
Lesley Cook works with Lanchester Wines' producer partners around the world to ensure it has the right level of supply regardless of vintage shortages
There is always a challenge somewhere, some you can anticipate, others you just have to roll with, but for me it’s about long term relationships. That way, if there’s a shortage or problem, you can ensure you’re first in the queue.
Every year there is something, but to be honest this year has been pretty steady for us. If we had a year like 2024 every year, then it would be great, but life isn’t like that.
The shipping crisis during Covid and the start of the Ukraine war caused all sorts of problems. Is that now resolved?
No, I am afraid it isn’t. We had a few months where things calmed down, but then over the last six months, we have seen delays on shipping, ports being missed out again, containers sitting on docks for months on end at feeder ports, to the extent that only 52% of containers have arrived on time. And yet, incredibly, shipping prices continue to rise.
What about Marlborough Sauvignon Blanc, which was in very short supply a couple of years ago?
Lanchester Wines' works with its producer partners to create its own excluvisve labels - like Nika Tiki from New Zealand
I am happy to report that Marlborough is going great guns. We had a hiatus in 2021, then extremely high pricing in 2022 caused a bit of a stall in proceedings, but this year it has settled down and our Marlborough sales are back to where they were pre 2021.
We have just scooped a coveted gold NOFFLA (National Off-License Association) award in Ireland for our Nika Tiki Marlborough Sauvignon Blanc, which was gratifying, as this wine is something of which I am incredibly proud.
How are you doing versus commercial targets in 2024?
We are definitely on track: our financial year end is in the summer, but even if you take the calendar year, then we are on course, which I have to tell you is no mean feat in this particular market. I think that’s down to the quality of our portfolio, the pricing, our hard-working teams and the reputation of our customer service. It is undoubtedly tough out there, but we are performing well, thankfully.
What impact do you think the Extended Packaging Responsibilities will have?
The government has changed the rules on packaging waste, so it is now the brand owner that bears responsibility, meaning we have to calculate how much we need to pay - the higher the weight the more to pay.
It is challenging for the industry, for sure, not least as the figures are only just being released. EPR is virgin territory and it appears to be a work in progress, so it’s not entirely clear yet what we’ll be paying, but I can tell you that Lanchester Wines will bottle everything we can in the super lightweight 300g bottle, so that will help achieve significant savings.
Indeed, reducing bottle weight has been a focus at our sister company, Greencroft Bottling, for some time, where for the last 15 years, the average weight of bottles filled has been less than 420g, going beyond parameters set by the Bottle Weight Accord initiated by the Sustainable Wine Roundtable. Sadly, carbon neutrality doesn’t yet count towards EPR, but it arguably should do.
What about the duty changes coming into effect on February 1?
The Lanchester Wines team is widely experienced in sourcing wine from around the world for its on and off-trade customers
It is deeply disappointing, a real sucker punch to the trade and consumers alike, at a time when the cost of living is high. This just adds to a long list of woes that government, this one and the previous administration, have caused us.
As usual with a budget, duty rates are just snuck through the back door. From February 1, when the duty easement ceases, every half a degree ABV is at a different duty rate, which is a bureaucratic nightmare for us and a real blow for consumers.
Here’s an example: the duty rate for a 14.5% wine is currently £16.02p for six bottles and it will increase to £19.27, that’s an astonishing rise of more than 50p per bottle, coming hot on the heels of the duty rises last summer.
I was at the World Bulk Wine Exhibition and my colleagues from other countries just cannot believe how high the duty rates are in the UK.
How are you preparing for these changes? Are you now buying lower ABV wines?
We are not going to compromise quality for price. I never have done and I am not about to start as a result of these ridiculous changes. Tony Cleary (Lanchester Wines’ founder) famously says "You'll only ever sell a bad wine once" and he’s right.
Lower ABV wines work when the lower alcohol is natural, because they retain their composition and integrity, so earlier picking, or canopy management, can work, but the wine needs to retain the essence of the variety and the region, otherwise, it’s a wine that could be from anywhere.
There’s not much we can do, but we will have to take advantage of the 0.5% on ABV tolerances on labelling to at least ensure we are hitting the lowest possible point that’s within the rules. Legally, we are allowed to do that.
We have already made changes to our systems, to take account of the 20 plus different tax codes - our IT system has the capacity to log ABVs, obviously, but it is all very onerous and, with vintage variation, you can have significantly different tax bands for the same wine in different years.
All of our pricing makes the ABV and subsequent duty very clear and we are committed to helping our customers as much as we can.
What are the risks to the overall wine category from these changes?
We could potentially turn consumers off wine, it’s that serious. We are already seeing a decline in wine consumption and this could just make matters worse.
What are your thoughts going into 2025 and what you see as the big opportunities you can build on from this year?
Lanchester Wines will be once again exhibiting at ProWein but is keeping a close eye on Wine Paris and how fast it is growing
We have some exciting brands coming into the portfolio, including our new California agency, Sonoma’s Don Sebastiani & Sons, as well as some new Burgundy wines from Famille Moutard, whose Champagnes we launched into the UK in 2023,a producer that’s relatively unusual for a Champagne house in that the Moutard family has extensive holdings in Burgundy too, so that’s something to look forward to.
We have two new Australian agencies coming in as well, including a range of three wonderful wines, called ‘Permission to Pivot’, a Cabernet Sauvignon and two Rieslings.
We’ll be at ProWein, as usual, and I shall be checking out Wine Paris too, as we’re hearing so much about it and I am keen to see if it provides a compelling alternative for us because ProWein is increasingly expensive and it’s not what it once was.
Back here, we are very much looking forward to the new combined Australia and New Zealand tastings, in London and Edinburgh, at which we shall have an exclusive product launch - fans of Don’t Tell Gary will be very excited!
And we shall be back at London Wine Fair, to which we returned in 2024, and we shall have a presence at the Northern Restaurant and Bar show too, as we are obviously very proud of our roots in the north.
* You can find out more about Lanchester Wines at its website here.
* Lanchester Wines is a commerciual partner to The Buyer.
