Long-term deals boost for Conviviality as sales top £836m
Conviviality, the Crewe-based owner of Bargain Booze and Wine Rack, has toasted half-year revenue of £836.3m with long-term deals with its largest customers – Stonegate Pub Company and JD Wetherspoon.
This is despite a 1.9% dip in pre-tax profits to £15.1m in the period to October 30, 2017.
The company, which is the UK’s largest wholesaler and distributor of alcohol through its franchised outlets and hospitality and food service, signed a five year agreement with Stonegate, and another deal with Wetherspoon’s.
A 10-year agreement was also signed with Wadworth to supply wines to 200 managed and 139 independent free trade outlets.
Meanwhile, the company spent £10.5m on the upgrade of its IT systems.
Net debt at £133.3m was 3.7% below net debt at October 30, 2016 of £138.4m.
Chief executive Diana said: “Our customers and franchisees have continued to recognise the strength of the Conviviality proposition and the opportunities a single supplier and distribution solution affords them.
“This has been evidenced by our above market growth in both the on trade and the off trade during the period.
“We have made deliberate choices to successfully grow market share and enhance the quality of future earnings by agreeing long term contracts with our larger customers and securing new national account customers.
“These gains in market share coupled with our continued strong sales demonstrates our competitive advantage, the broad customer base we have developed and the robust nature of Conviviality as the UK’s leading drinks wholesaler, distributor and solution provider to our customers.”
