Remarkable Expansion
Hallgarten & Novum Wines has made quite an impression on industry watchers ever since its acquisition by Coterie Holdings in December 2023.
The past year has seen the company actively expand, welcoming 30 new producers and adding a remarkable 300 wines to its portfolio.
This surge was accompanied by an increase in headcount, with 30 new employees joining the ranks.
These concerted efforts have positioned Hallgarten as a powerful player in the import and distribution realm, bolstered by the resources provided by Coterie.
Impressive Financial Growth
At a recent tasting event held at London’s Old Billingsgate, Managing Director Andrew Bewes and Chief Buyer Steve Daniel shared insights into the company’s strategy.
While the expansion through acquisitions has been noteworthy, both leaders indicated that a phase of consolidation is on the horizon.
Bewes proudly announced a striking 50% increase in turnover, crediting this growth to key partnerships with on-trade accounts such as The Ivy Collection and the addition of notable producers like Bruce Jack Wines.
He explained that Hallgarten’s revenue reached £62 million for the fiscal year ending last March, with optimistic projections suggesting this figure could climb to £75 million for the current year.
He further noted that with the influx of new clients and the company’s well-prepared inventory and staffing, it wouldn’t be surprising to see actual earnings hitting £90 million.
Reflecting on their journey, Bewes pointed out that it took Hallgarten 15 years to grow from £30 million to £60 million in turnover, yet they managed to add another £30 million just within the past year.
He expressed confidence that with the strengthened team and a wider selection of products, the company is well-equipped to achieve further growth across different market segments.
Strategic Focus and Opportunities
In a wine market that poses challenges, Hallgarten remains focused on acquiring fresh accounts, particularly within the hospitality sector.
Bewes described the ongoing effort to penetrate hotels, restaurants, and pubs as a natural and strategic evolution for the company.
He highlighted major revenue drivers, including the newly added Champagne Nicolas Feuillatte and Bruce Jack Wines, both of which are significantly boosting sales.
The role of independent retailers is also central to Hallgarten’s strategy, especially in the high-end on-trade market.
Bewes emphasized that these relationships are crucial for reaching retail merchants and sommeliers, who play a vital role at the point of sale.
He noted that while entry-level wines are simpler to market, depth of knowledge about wine enhances the consumer experience, making it essential to cultivate strong ties in this sector to gain new accounts.
Addressing potential obstacles—like the end of duty easements and rising costs—Bewes emphasized the opportunities stemming from Hallgarten’s diverse portfolio in the hospitality landscape.
He noted that as premium wines from regions such as Bordeaux and Burgundy grow increasingly expensive, there will likely be a heightened demand for a wider selection of wine styles and origins.
This shift could offer consumers access to more affordable options as wine lists adapt to meet new pricing challenges.
He suggested that fluctuations in wine pricing might influence consumer behavior, encouraging diners to explore competitively priced alternatives, which could pave the way for Hallgarten’s offerings to capture new markets.
Echoing this perspective, Daniel remarked that restaurants will be compelled to diversify their wine selections in light of fewer available slots on their lists.
This need for variety could lead to more experimentation with lesser-known varietals and regions, inviting consumers to step beyond conventional options.
During the tasting event, Hallgarten showcased an eclectic array of wines from countries such as Germany, Greece, Georgia, South Africa, Lebanon, the UK, Spain, Italy, and the USA.
The atmosphere buzzed with optimism and ambition, reflecting a company ready to thrive despite industry-wide hurdles.
Bewes and Daniel are both determined to navigate these challenges successfully as they propel the business forward.
Source: Harpers
