Wine producer raises a glass to funding boost

A South Staffordshire-based wine producer and retailer has been able to expand its production and diversify its operations during the coronavirus shutdown after securing a funding boost.

The Halfpenny Green Wine Estate faced difficulties on both the agricultural and retail sides of its business due to the COVID-19 outbreak.

Alongside adjusting to the forced closure of its on-site restaurant and tearoom, the business said it needed to respond to a surge in demand for its wines.

The estate which produces around 60,000 bottles of its own-label wine each year, also carries out contract winemaking and bottling for more than 50 vineyards across England and Wales.

To meet its obligations, owner Clive Vickers realised that he would need to buy more bottles in order to get wine currently held in tanks from last year’s harvest into bottles.

Lloyds Bank provided a £180,000 funding package that included a capital loan repayment holiday for the next six months.

This has enabled the company to maintain wine production and on-site bottling operations enable it to meet operational overheads and staff costs.

While the business has had to furlough 45 of its 60 employees, who normally help to run its shop, restaurant and café, Vickers has diversified the business’ retail operations to help counter some of the challenges posed by the lockdown.

Customers can book 20-minute individual personalised shopping experience with a member of staff to help with their wine selection – all while maintaining appropriate social distancing. Customers can also place orders via social media for collection.

The business has also launched a home-made food and wine delivery service for local residents and click & collect.

The Halfpenny Green Wine Estate farms almost 30 acres of south-facing vineyards near Bobbington in South Staffordshire. The wine is sold in the business’ on-site shop and is also stocked in other farm shops and delis across the region.

Vickers said: “In spite of the chaos that COVID-19 has brought to our business, we’ve seen a surge in demand for our wine. Above all, we still needed to maintain the agricultural side of our business, while adapting our retail arm to make the best of this unprecedented situation.

“We’re just a small rural business, but Lloyds Bank stepped in straight away to help us out. Without this funding, we simply wouldn’t have enough cash to buy in the volume of wine bottles we need to keep up with orders.

“We’re working flat out to make sure all our customers are looked after and our employees have jobs to return to at the end of the pandemic, so we’re very grateful for the speed and professionalism of the team at Lloyds Bank.”

Di Preece, relationship manager for Lloyds Bank said: “Halfpenny Green Wine Estate is one of largest vineyards in the UK and has a legion of loyal customers that enjoy its award-winning wines. The business needed to respond and adapt quickly to the COVID-19 outbreak, in order to ensure that its key wine production services remained operational and to help offset the temporary closure of the restaurant and tearoom.”