The Grocer – 10 August 2019

(Romina) #1

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Get the full story at thegrocer.co.uk 10 August 2019 | The Grocer | 3

W


e’re all in it together. Whether you agree with a no-
deal Brexit or not, the onus is on everyone in the
industry to rally round. Blitz spirit and all that. And
behind the scenes, the best brains in retail,
wholesale and supply are working furiously to do the best they
can to minimise disruption, despite the government planning
for at least 50% of trucks at border crossings to experience
disruption and delay, and the prospect of food shortages and
10%-plus infl ation “within days” of a no-deal Brexit.
But the thing is, we’re not all in it together. It’s each to its
own. First, due to competition law, retailers and suppliers are
not in a position to co-ordinate supply arrangements (unless it’s
inadvertently via consolidators) – even if there is a public
interest in doing so, whether in terms of averting shortages, or
minimising cost increases, even for low income groups. The
FDF, BRC and IGD have been trying for a year to establish ways
in which the industry might collaborate via so-called ‘short
order waivers’ in the event of a no-deal Brexit, but Defra is not
willing to entertain such an idea (p5). And to be fair, that wasn’t
just on a point of principle, but due to the hazy nature of the
industry’s proposals.
Second, this is not a war. Even if the threat of disruption is
potentially greater than at any time since we last were in one. So
even though the percentage of food and drink businesses that
have applied for an EORI (for example) is alarmingly low, while
others are once bitten twice shy, retailers and suppliers who
have prepared will rightly consider their own skills and
preparation a competitive advantage they will not want to give
away. A no-deal Brexit is a competitive opportunity same as any
other, even if there are wider repercussions.
And fi nally we’re not all in it together because, while the
government is promising potential handouts, a lot of the cost it’s
earmarked is about paying to park lorries on motorways, while
the government’s policy is to hope our European equivalents
play nicely on tariff equivalencies, on the basis that they’re in
this with us too. And they’re most defi nitely not.

“We’re not all in


this together. It’s
not a Blitz spirit.
A no-deal Brexit

is a competitive
opportunity same

as any other”
Adam Leyland, Editor

“The irony of the


Majestic sale is
that e-commerce
is the biggest

opportunity”
Daniel Woolfson, drinks editor

Some marriages just don’t
work. The trick is knowing
when to call it a day. And that’s
the message from the break-up
of Naked Wines and Majestic,
which leaves CEO Rowan
Gormley with a bursting wallet
to spend on growing his online
business in the US.
It also leaves Majestic free
to focus on what it’s great at –
sourcing and selling interesting
wine – without having to worry
about public ownership or
integration with a diff erent
proposition and customer base.
This is, for now, a positive
outcome. Majestic MD Josh
Lincoln appears genuinely
confi dent that Fortress won’t

just asset strip, but will look
to grow Majestic. And while
the stores will benefi t from the
business abandoning attempts
to unify the range, the greater
irony is that e-commerce is
probably where the biggest
opportunity lies.
Despite a far less
sophisticated website than
Naked’s, sales have been
growing. And with integration
plans abandoned, the clarity
of purpose and ownership
provides fresh hope the team
can make it work. And heaven
knows high street wine retail
could use some good news.

More on page 10

for more opinion see pages 20–
To comment on an article, or read what
others say, go to thegrocer.co.uk

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