Wine retailer Majestic has entered into a formal agreement to acquire wines and spirits supplier Enotria&Coe.
The company noted that the combination would accelerate its ambition to become the UK’s pre-eminent supplier of wines, beers and spirits, and improve the service it offers on-trade customers.
Founded in 1972, Enotria&Coe is said to have one of the most comprehensive ranges of premium wines and spirits of any distributor in the UK. It works with a range of more than 300 producers, including more than 200 exclusive agency brands. The business supplies a host of premium restaurants, hotels and hospitality venues, including Gaucho, Rick Stein, Hotel du Vin/Malmaison, Bancone and L’Enclume.
Majestic noted that it has identified “significant potential” to further grow Enotria&Coe alongside its existing B2B specialist arm, Majestic Commercial, with both continuing to operate as standalone businesses. The combination will create an “enlarged, highly competitive on-trade specialist with a best-in-class, differentiated service and product proposition”. Majestic Commercial has delivered double-digit sales growth in each of the past three years.
Group CEO John Colley said: “We are pleased to have entered into a formal agreement to acquire Enotria&Coe. It is a business we have competed against and admired for a long time, with a quality proposition and cultural values that align very closely with what we already do at Majestic. We believe this is a compelling strategic combination and can see huge potential to further enhance Enotria’s proposition and profitability as part of the Majestic group.”
Enotria&Coe CEO Julian Momen added: “This combination is fantastic news for Enotria&Coe colleagues, customers, our business and our future growth ambitions. From the initial approach and subsequent discussions with Majestic, it has been obvious to me that there is much to admire in their business and their growth. More importantly, we have a similar business ethos, and our behaviours and focus on people means that we are fully aligned on building a successful business together for the benefit of customers and suppliers.”
NAM Implications:
- A reminder for all suppliers of the inevitability of mergers and takeovers…
- …in response to the unprecedented market conditions arising from lockdown.
- Especially in hospitality…
- Meaning it is key that companies constantly harmonise the terms and conditions to reduce the chances of having a newly-formed major customer do it on your behalf.
- That apart, the Majestic-Enotria&Coe deal looks complementary and promising.
