J&B to open Hong Kong office

Today the web, tomorrow Hong Kong: behind the conservative façade of its St James’ London office, Justerini & Brooks is busy preparing to broaden its reach further than at any time during the fine wine merchant’s 260 year history.

Having launched a new website six weeks ago, complete with an interactive personal wine broking service, J&B chairman and buying director Hew Blair revealed that plans are “already in motion” to open its first Hong Kong office.

Although it was too early to divulge much further detail about the project, Blair explained: “We already have lots of private customers there.” However, the ambition behind this development is not simply about the merchant strengthening relationships with existing clientele, as Blair notes: “The key for Hong Kong will be getting into China.”

While reporting plenty of interest and sales of ’09 Bordeaux en primeur among his regular customers in spite of the unprecedented prices, Blair suspects China’s appetite for these wines may well prove key to the future shape of the Bordeaux market. “I just don’t know with the Chinese whether perhaps we’re now at a new level of pricing that’s going to be sustainable in the long-term”, he said.

The company already does significant business in Singpore as distributor there for Burgundy’s Clos de Tart. However, while there may appear to be little to distinguish J&B from its neighbour Berry Bros & Rudd, the former’s ownership by Diageo has perhaps slightly hampered its ability to react as quickly to emerging opportunities in the wine trade.

At the same time, it was Diageo who provided valuable support for the merchant as it embarked on its recent ambitious online broking project and Blair also points out the advantages this relationship enables J&B to pass on to its customers. “They provide security, particularly for our customers with vintage reserves under bond”, he explained, adding that, thanks to the huge supplies of J&B whisky already in stock, “We’ve got one of the most comprehensive insurance policies you’ll find.”

While the online broking facility continues to undergo some “inevitable” tweaks, Blair is optimistic that it will be fully operational in “a month or so’s time.” Despite these teething problems, he remains convinced that an active online service is “vitally important” for the company, saying: “I think the web will broaden our appeal.” As part of this effort, the J&B buying team already posts a blog during trips, complete with producer and grower interviews.

If Blair does have one reservation about the online revolution, it’s that “I’m a little bit worried we’ll lose contact with people; they’ll buy stuff but we’ll never see them. When you talk to people coming into the shop, that’s a very useful source of feedback.”

Building a meaningful relationship with faceless consumers is an issue for any business opening up a commercial avenue online, but these evolutionary ripples at J&B show that even the most traditional merchants are now embracing the 21st century face of the wine trade.

Gabriel Savage, 08.07.2010