Jeroboams plans 50% rise in turnover

London-based drinks wholesaler and retailer Jeroboams is planning to increase its turnover by 50% within the next five years.

Source of the increase revenue will be a rise in sales to private clients and more shops in the capital, according to managing director Hugh Sturges, who joined Jeroboams in August 2015 from Berry Bros & Rudd, where he was MD for nine years.

The group’s current annual turnover totals £20 million, but Sturges told the drinks business earlier this month that he aims to raise that figure to £30m in five years.

Providing the increased revenue will be another 3-4 shops, augmenting the company’s existing seven shops in London (including its Notting Hill deli Mr Christian’s), as well as a doubling of the group’s private client business to £8m.

Presently, the shops contribute around £6m in turnover annually, with the private client business bringing in £4m, and the other £10 coming from the wholesale operation, called Laytons.

“I see an opportunity for private sales but merged with the shops, because it is my opinion that Jeroboams can build private customers on the back of its retail presence, which is relatively significant compared to the competition,” explained Sturges.

Continuing, he said that Jeroboams’ shop managers were now working part of their week with the private sales team, who are based in the group’s offices in Islington, to ensure that the retail staff are able to act as an extension of the private sales department.

He also said that Jeroboams were upgrading the shops, and have recently added an events space beneath its Walton Street store, noting that the group’s founder and owner, Peter Rich, had approved a “big investment project”, having asked Sturges “to make Jeroboams a proper business.”

Calling itself “London’s local wine merchant”, Jeroboams has stores in the capital’s most expensive boroughs, including Chelsea and Knightsbridge, as well as Holland Park, Notting Hill, and Hampstead.

In terms of new openings, Sturges said he was targeting parts of London where the demographics were similar to the above areas, mentioning a range of possibilities, including Wimbledon Village and Highgate, or Canary Wharf.

“We want to be in places where there are wealthy residents within a 1 mile radius, and where we can deliver by bike, although we won’t go head-on against the local competition, such as Borough Wines, Bottle Apostle or Lea & Sandeman.”

On the other hand, he said that he was “happy to go up against” Oddbins and Nicolas, as well as Majestic.

In the first five months of this year, Sturges recorded a 30% increase in sales for the Jeroboams retail business compared to 2015, which he attributed to the group’s improved wine range and the decision to start in-store tastings on Friday and Saturday evenings.

However, he said that the company “wasn’t expecting to make a profit this year because we are investing a lot.”