Congratulations on your 120 year anniversary - that is some achievement - what are you doing to celebrate?
We are marking the occasion in a few different ways, both internally and within the wider community. One of our key aims is to raise £12,000 for our local hospice, Dove House, which is very close to our hearts and has been our chosen charity for many years.
For the team we are organising a company walk followed by a hog roast back at our HQ in Melton as well as a dinner bringing together both current and retired colleagues. We want to recognise everyone who has contributed to the business over the years.
On the product side, we have collaborated with Roebuck Estates to create a special 120th Anniversary Cuvée and our lead Rioja supplier, Rioja Vega, is producing a commemorative label for our Crianza for the remainder of the year.
Can you pick out key milestones in your history that have helped the business get to where it is now?
John and Georgia Townend are now celebrating the arrival of the sixth generation of the Townend family
A defining feature of the business has been the involvement of successive generations. Each time a new generation joins, it reinforces the long term future and continuity of the company.
Survival over 120 years has depended on our ability to adapt. We have been involved in almost every aspect of the trade at one time or another, operating retail shops, pubs, restaurants and hotels, bottling our own wines until the early 1980s, compounding spirits and even producing advocaat, which is a story in itself. We were also once one of the few English blenders of Scotch whisky until regulations changed.
Strategic acquisitions have also played an important role with each one helping to strengthen and consolidate the business.
Can you explain how the business has changed - and how you have become a national operator?
When I joined the business in 1988, I have to admit my first thought was “What have I done?” The company was going through a difficult period as the off-licence retail sector was being overtaken by supermarkets and most of our 18 shops were loss making.
At the same time, however, the restaurant and hotel sector was expanding rapidly and we were fortunate to have a strong wine portfolio that suited that market perfectly. We committed fully to the on-trade and grew quickly, partly by attracting excellent on trade salespeople and partly through acquisition.
Key moments included the purchase of Cachet Wine in 1994 (we now use the name for our agency company), Playford Ros in 2008 and Lakeland Vintners in 2012.
Over the years we have expanded our reach, supplying hotel groups and larger venues such as racecourses, arenas and stadiums. As our customers have grown nationally, we have grown alongside them.
What do you see as the key skills you need to be a successful wine merchant and distribution business?
John Townend is proud of the "special" team and family culture at House of Townend with many members of staff being with the business for over 10 years
One of the most important aspect of running a family business is to accept that you are there by birth right. Your role is to safeguard the future of the business, ensure it is run profitably, appoint the best people in each role and look after the wellbeing of those who work within it.
There are 51 of us in all with an average tenure of over 10 years. That’s a lot of knowledge and commitment we have on our side. You could burn us down and we would be up and running in 10 days. Take away our team and that would be rather more challenging.
Beyond that, success ultimately comes down to the product. In a trade where decisions are often made through blind tasting, you have to buy well. We are closely involved in blending our own label wines from regions such as the south of France and Italy and we keep a close eye on evolving market trends.
Our buying team ensures that the range continues to develop.
Is it about the wine, the customers, the relationships or a combination of them?
It is very much a combination of all three. Quality customers expect quality wines and strong, long term relationships with both suppliers and customers are equally important.
What have been the hardest times in your history that you had to overcome?
The most challenging period was in the 1980s, following the loss of a major court case over the production of Keeling’s Advocaat against Allied Breweries. The case went all the way to the House of Lords and we lost. We had to pay £750,000 in damages - around £3 million in today’s money. I do not think my father ever fully recovered from it and it probably set the business back by 20 years.
Beyond that, like any long established company we have faced our share of external challenges - two world wars, recessions, depressions, banking crises and, more recently, Covid-19. There is always something to overcome.
What are you most proud of what you have been able to achieve?
During its 120-year history House of Townend has run its own off-licences, restaurants, bars and hotels as well as its successful wholesaler and agency business
Personally, I think the culture we have within the business is quite special. I love going to work every day.
Can you explain the current business and where you see your main strengths lie?
Today, the business operates across multiple channels. Wholesale to the restaurant and hotel trade accounts for 67% of turnover, our agency arm, Cachet Wine, represents 21% and the remaining 12% comes from private customers via our Cellar Door retail store and website.
You now have two bonded warehouses - how important has that been in building your national profile?
Having our own bonded warehouse in Melton, East Yorkshire, means that all shipments come directly to us, removing the need for third party storage. Our Lake District warehouse is then replenished on a weekly basis. This setup gives us real agility, as we have stock immediately to hand and it has played an important role in supporting our growth as a national operator.
Is there a typical House of Townend customer - what sort of business do you look to work with?
Our core customer tends to be the quality minded, independently run restaurant, pub and hotel. It’s our bread and butter.
As the years go by we have developed some very strong business with excellent pub and hotel groups, businesses that have reproduced their success into several sites. What we offer has also attracted some very big players who want to deliver real added value and this has lead to a strong presence with race courses, arenas and stadiums around the country.
What criteria do you use when taking on a new producer - what do they have to offer?
House of Townend's new headquarters in Melton near Hull which is supported by two of its own bondend warehouse and a futher bonded warehouse in the Lake District
It is always about the wine but virtually all our suppliers are family or independently owned themselves. That’s important to us because we tend to think alike and have the same goals. Our relationships tend to be very long, they are invested in what we do and what we are looking for.
Even after 120 years do you still see areas for growth and opportunity? What are those?
This is an interesting one. We always push to develop and grow the business but this has to be done sustainably. Cachet Wine has enjoyed several years of strong year-on-year growth supplying independent wine merchants around the UK and we expect that to continue.
The quality independent restaurant sector is busy largely thanks to the ‘grey’ pound, especially as unspent pensions are now taxed at 40% - you may as well get spending.
That said they are being crippled with increased costs and taxes. And even though we continually hear that everyone is drinking less, there is plenty of thirst for good wine.
Anything else to say?
The sixth generation has just been born, so I hope we have a long future ahead of us!
* To find out more about House of Townend click here.
