Drinksummit celebrated its 18th birthday in June and again focused the trade's attention on the critical importance of the alcoholic drinks category to the overall well-being of the wholesale grocery market.
Beers, wines and spirits comprise the second largest core category in cash and carry sales, and are the third biggest seller in the delivered sector. Most importantly the drinks market is one in which wholesalers can still compete head on with the major multiples and make money.
This was very much the case back in 1991 when the Federation of Wholesale Distributors decided to hold a drinks specific conference and launched the event at Peterhouse College in Cambridge.
What gave this year's Drinsummit a real fillip was a session called "My Store - My Story" when six independent retailers took to the stage and told us how things really are in their off-licence businesses. Representing stores across the UK from Cornwall to the north of Scotland, their stories from the coalface of the wholesale/independent channel rang out loud and clear. Their combined experience of what worked and what did not work in their markets sent out clear and refreshing messages to the top line audience of influential suppliers and wholesalers (see page 25 for more Drinksummit reports).
The on trade is currently experiencing a worse time than the off trade, but the political spotlight is well and truly on the whole sector as the 'binge drinking' and health lobbies press for ever more controls.
Other challenges facing the drinks industry include the prospect of above inflation duty increases and escalating production costs, as well as the introduction of health warnings on bottles, and government moves on excessive or under age drinking and related anti-social behaviour. And now a debate has begun in Scotland about raising the age limit for buying alcohol at retail to 21-year-olds, setting minimum prices and limiting promotional offers.
We know that most people drink responsibly, that suppliers market their brands responsibly and that most retailers sell responsibly. It is galling that the minority who don't should spoil the market for the rest of us.
FWD has worked hard over recent years to protect the drinks category from the damage caused by duty fraud. We have had some success and this type of criminality has abated somewhat. Perhaps though, it is the potential for excessive legislation that menaces our drinks trade even more in the immediate future.
Will Government proposals to ban the display of tobacco in retail premises damage the wholesale sector?
