Why the Hallgarten Druitt & Novum and Hallowed Ground deal is a key move for all the on-trade.
Hallgarten’s Andrew Bewes is delighted by the Hallowed Ground deal
Hallgarten Druitt & Novum Wines’ move to acquire the wine agency business of Hallowed Ground won’t go down as one of the biggest business deals of the year. But, in its way, it is a clever, strategic step that says as much about Hallgarten’s ambition to be regarded as a premium supplier of esoteric and interesting wines as any higher profile multi-million pound deal would do.
Hallowed Ground has, since it was founded by Amelia Jukes and Elodie Cameron in 2010, become exactly that. A haven for carefully selected Australian and New Zealand wineries that have individually and collectively turned heads with wine buyers across specialist independent wine merchants and the premium on-trade. Wines, as it says, with provenance.
Which just happens to be the heartland of Hallgarten Druitt & Novum Wines.
In one swoop Hallgarten has elevated its Australian range from the tried and trusted to an impressive line up of wines representing the best of what is happening in Australia at the moment.
In all the deal involves 61 wines and 10 wineries each of whom would be a catch on their own. The wineries involved include: Clos Clare, Eden Road, Fox Gordon, Laissez Faire, Lake Breeze, Ocean Eight, Paringa Estate, Teusner, Ravenswood Lane and Ulithorne.
The new producers will join Berton Vineyard and Larry Cherubino in Hallgarten’s Australian portfolio.
Andrew Bewes, managing director of Hallgarten Druitt, said he “could not be more delighted” by the deal. He told The Buyer: “We have been looking for a while how to expand our Australia portfolio from what is at the entry to premium entry level. This now brings our Australian range in line with our main wine countries.”
It also gives Hallgarten strength and representation across the main Australian wine regions.
Hallowed Ground’s Amelia Jukes and Elodie Cameron
For Hallowed Ground’s founders, Amelia Jukes and Elodie Cameron, the time was clearly right to pass on responsibility for the wines and the wineries to an operator that can take them to another level in the UK. Jukes said they “were delighted with the news”. As are their winery partners for it will give them greater potential “opportunities for listings and exposure for Australian fine wine”. She is to work with Hallgarten on a temporary basis to help with the transition process.
More consolidation
We have written before at The Buyer about the difficulty there is for our national drinks and wine suppliers to truly stand out from each other. Where the focus is going more and more on improving the added value services they can offer be it the training, the support, the on the ground hand holding that their customers now require.
But ultimately it is about how good their wine range is. How interesting, yet commercial its drinks offer is to a wide range of on-trade businesses right across the country.
Which is why Hallgarten’s Hallowed Ground deal is so interesting. A niche, highly respected wine agency which is now part of one of the biggest distributors in the country.
But its wines are in good hands, particularly under the guidance of head buyer, Steve Daniel. To many he is the heart and soul of Hallgarten Druitt and Novum Wines.
Capable of sourcing and buying wines that give Hallgarten the esoteric touches to its wine list. You only have to look and see what he has done with Hallgarten’s Greek and Mediterranean portfolios to see the independent agency flair he brings to the business.
Hallgarten’s heart and soul: head buyer, Steve Daniel
Tough times ahead
The Hallowed Ground deal could be a precursor for similar tie-ups between smaller, niche players and the bigger groups looking to add complexity and interest to their wine lists. Hallgarten and Novum are a case in point. Novum having become part of a bigger group after years establishing itself as a respected independent.
Bewes believes times are only going to get tougher for smaller agencies and distributors as not only the supply base consolidates, but the on-trade continues to want to work with a smaller group of suppliers
“I think it is going to be tougher for them to get access to the bigger on-trade customers. We are seeing consolidation in the restaurant sector and operators wanting to work with fewer suppliers.”
He adds: “The bigger restaurants in London now only want to work with two or three suppliers and are moving to only having 50 to 60 bins on the list. I love what the smaller, artisanal agencies can do and I am sure they can still flourish in London. But it is going to be a lot harder for them, particularly outside London.”
Equally there comes a time in a small agency’s life when naturally it reaches that crossroads, that moment when it has to decide how it moves forward. Invest and get bigger. Stay the same and risk being overtaken by hungrier operators around you.
For Hallowed Ground the decision appears to have been a reasonably easy and sensible one. It is also thought to be splitting its remaining New Zealand portfolio between Indigo Wines and Berry Brothers & Rudd. Jukes and Camereon deserve great credit and respect in building up such an impressive list of award winning, game-changing wineries that a business the scale of Hallgarten Druitt would come knocking on your door.
But as our bigger distributors look to respond to Conviviality buying both Matthew Clark and Bibendum PLB by going on the acquisition trail themselves, it is inevitable other smaller, respected wine agencies will soon be getting offers they can’t refuse.
