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CAREERS: How much are you really worth?
Find out what other drinks professionals earn – from wine buyer and marketing manager to master distiller – and salivate over our BoardEx drinks business salary survey. Patrick Schmitt reports
Let’s face it, most of us don’t go into the drinks industry for the money. But for those of you shifting boxes in a wine warehouse, living off toast and wondering how you’ll afford next month’s rent, it might be comforting to view the financial rewards for those at the top (or sickening, depending on your outlook). As many as seven of the leading figures in the drinks world take home over £1 million every year, and that’s excluding share options, while the average pay for executive directors is over £800,000.
Not bad, but then again, as Dominick Sutton, director of BoardEx, compiler of this salary survey, says, “Big drinks companies are complicated things to run. You expect the guys at the top to earn a lot and they do.†In fact, average pay at this level for those in the drinks sector is higher than it is for those in food or hotels.
Getting to such a position is also complicated, and sadly there’s no blueprint, but we have profiled a few characters working in different roles at different – and rather lower – levels in the drinks industry to give you an idea of what various jobs entail and how those people doing them, got there.
As for the drinks industry’s biggest cheeses and what they take home, this list proves that leading alcoholic drinks companies have the scale and profitability to reward those heading them handsomely. Furthermore, as Sutton says, “One always expects an American to be at the top of the league because they pay themselves a lot more.â€
In fact, the multinational nature of major drinks companies means top salaries are more uniform, and as companies move into the US, salaries tend to increase. Sutton suggests this was the case when South African Breweries (SAB) merged with Miller. In terms of pay, he says, “It could be the Miller tail waving the SAB dog.â€
The data for this survey was taken from companies in the drinks industry that have public accounts and are listed on the stock exchange, and hence there are certain companies and people that are not included, although one might expect them to feature. LVMH’s Bernard Arnault is one of them, majority shareholder in the luxury conglomerate, which doesn’t currently disclose its board members’ salaries. Sutton notes that Arnault had a salary alone of £900,000 back in 2002 (the last time such data was recorded) and had £7.5m in equity-linked options, but in any case, LVMH is more than a drinks company.
It is also worth noting that the list is based just on direct pay, because, according to Sutton, “That’s the folding stuff, the real measure of what you get.†He does admit, however, that the people in these lists will
have a lot of money in options.
Finally, it is interesting to see that Maurice Pratt from C&C Group features – presumably he is being rewarded for the success of Magners Irish Cider, owned by the Dublin-based company.
Knowledge not essential
So what are the necessary skills for climbing the drinks industry ladder? Traditionally, the focus may have been on product knowledge, measured through WSET qualifications, and although these are still important, as Christian Hughes, director at Match Consultants says, “There is a massive misconception that product knowledge alone is going to get you into the trade.†Also needed for roles in sales and management are account management skills, account planning know-how and category management expertise. An understanding of logistics is also important, especially when dealing with the major multiples.
And because of the need for a wide set of skills, “the drinks industry is more open to people from different backgrounds,†believes David Hillman, managing director of headhunters MRI Worldwide. When Hillman began recruiting for the drinks industry seven years ago he found “most wanted people from the drinks industry, but now, apart from on-trade specific roles, the drinks trade is more open to bringing in people from other disciplines, for example food, pharmaceuticals, sports goods.†Why the change? “It’s due to the strength of the major supermarket chains,†believes Hillman, and the fact they expect the same professional service from all their suppliers.
However, Hughes at Match points out that those in the drinks industry tend to earn 15-20% less than counterparts in other FMCG industries. “A national account manger for McVities, for instance, might earn £65-£70,000 while a national account manager at a company like Western Wines might earn around £55,000.â€
With regard to smaller companies David Pilkington of recruitment consultancy Pilkington Webster, notes that employers still look for candidates from within the drinks industry, “They need someone who can hit the ground running,†he says, “and two out of three jobs are filled through contacts.†He also records that the standard of candidates is “not as good as five years ago because companies are not investing in training. Investing in skills means taking people off the road, which is a cost in terms of time and money, and companies can’t always afford to do that, especially with margins being squeezed.â€
This perhaps explains a trend identified by Hughes at Match. “Employers are looking for the finished article, they are not taking on a junior and training them up.†he says.
They are also “increasingly understanding the benefits of using head hunters rather than advertising to get a specific result,†says Hillman.
There is no model route into the drinks industry or standard way to progress through it. However, Hughes stresses that if there is a structured career path to becoming a national account manager it would begin with shop work and sales support, followed by a regional sales role, and then maybe a supporting role for a national account manager, before possibly managing a smaller account and then taking on a major national account. However, there are many more roles in the drinks industry than account management, so we’ve spoken to a wide selection of industry professionals to gain a better understanding of their roles.
| HEAD SOMMELIER Name: Matt Skinner Job: Head sommelier/wine buyer at Jamie Oliver’s Fifteen restaurants Main tasks: “The key is service,†Skinner explains, “carrying it out efficiently and effectively. Staff training too – we have a strong wine training programme which we rolled out through the group. Also buying; you’ve got to ensure there is a well put together wine list and a profitable one [for Fifteen’s four restaurants]. I also represent Fifteen at events,†he says. Skills: “When recruiting I look for personality – it’s something you can’t teach,†says Skinner. “It is very important to have people with the right attitude and from there you can learn about wine.†Approximate salary: Sommelier at Fifteen starting salary can expect between £20,000 and £22,000 |
MANAGING DIRECTOR Name: Nick Dymoke-Marr Job: Managing director, Orbital Wines Main tasks: “Although my role as MD is multi-faceted I do find that a key feature of it is to market and publicise what we do to a wide audience. Recognition and acceptance of both Orbital and its brands will ultimately decide how successful we are.†Skills: “My working existence is driven by a firm belief that we must consistently deliver innovation and creativity, excellently. A tall order for anyone perhaps, but that is the only way we can see a sustainable future in our industry.†|
| MARKETING MANAGER Name: Colin Cameron Job: Marketing manager, Percy Fox Main tasks: “My role is to manage the strategy and day-to-day activity of Percy Fox’s agency and premium brands, including the Champagne portfolio,†says Cameron. “I help divine strategic development of brands and work with the team to achieve objectives.†Skills: “A good understanding of wine – I’ve got the WSET diploma – and a thorough understanding of the wine market in the UK is necessary. You’ve got to make sure brands are targeting the right channels.†He adds, “When I was at Pernod Ricard I had a 15 month secondment in the sales team and when in marketing it is a real advantage having had some sales experience, and not just a week out with the trade.†|
MASTER DISTILLER Name: Dr Bill Lumsden Job: Master distiller, Glenmorangie portfolio Main tasks: “The operation of our three malt whisky distilleries (Glenmorangie, Glen Moray and Ardbeg), ensuring that the desired quality and quantity of spirit is produced, to an agreed budget, while ensuring that all legislative requirements (Health & Safety, Environmental and Customs & Excise) are met,†explains Lumsden. “Selection of whisky stock for all whisky recipes, ensuring that the desired quality/flavour profile is achieved. Development of new products. Purchase of raw materials (particularly malted barley and oak barrels) for the production of whisky. Brand ambassador work, promoting the virtues of our brands and of Scotch whisky.†Skills: “Many and varied, but in particular, a good nose and palate for whisky tasting, a scientific background, well-developed presentation skills, and many years of experience in the whisky industry. But above all, a deep passion for making whisky!â€
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| COMMUNICATIONS DIRECTOR Name: Jo Mason Job: Associate director, Westbury Communications Main tasks: “I’m very involved in the running of Westbury, which covers staff management, new business pitching and looking after a wide range of clients,†says Mason. “The great thing about my job is that it’s so varied. Identifying the main tasks is pretty tough, although getting our clients into print is the overall goal.†Skills: “You need to be able to write, add up, understand the UK drinks market, enjoy wine, be creative, artistic, articulate, tolerant, fundamentally happy, chatty,†says Mason. It is also essential, she points out, that candidates for a director in a communications company to be able to “stay up half the night and still finction the next day.†Career history: “I worked in Victoria Wines as a student and then Majestic as a graduate. I got the job at Westbury through word of mouth and have now been here for six years. I got to this position by staying in the company for a really long time so that eventually, out of pity, I was promoted.†|
MARKETING MANAGER Name: Jon Pepper Job: Marketing manager, Buckingham Vintners Main tasks: â€The most important part of my role is working with our suppliers and our sales team to develop products and activities which meet customer and consumer needs as quickly and effectively as possible,†says Pepper. Career history: â€Three years at L’Oréal doing classic FMCG brand management and then two years at LVMH extolling the virtues of unfeasibly expensive perfume,†recalls Pepper. “Working in wine has long been my goal, and the move into the trade seemed predestined when I discovered in an interview at Buckingham Vintners that one of the sales team here knew my mother from a chance encounter in a car park somewhere outside Cheltenham,†he explains. Skills: “It is key to be very flexible and to be an effective multi-tasker; you have to combine a long-term strategic approach with the ability to turn new products and ideas around extremely quickly.†Future: “This is a very exciting time to be at Buckingham Vintners as we are going through huge growth and the company is developing rapidly – there’s plenty to keep us busy for a good few years!†|
| WINE BUYER Name: Melissa Draycott Job: Senior wine buyer for Champagne, sparkling wines, fortified wines, South Africa at Sainsbury’s Main tasks: Sourcing for portfolios (250 wines); working with key suppliers; ensuring ranges are up to date and customer focused; planning and negotiating promotions and pricing; handling own-label development, design, sampling and product quality benchmarking with quality manager; assessing sales and profit performance weekly including budget forecasting, and monitoring availability, stock levels and stock loss with supply chain. Key skills: Negotiation; commercial awareness; communication; networking; cost structure knowledge, information management, and computer/systems skills. Salary band: £25,000 to £60,000 Career history: Three years at Waitrose. BWS manager at Bury St Edmunds, Sainsbury’s. Worked way round 12 stores in East Anglia up the ladder to store manager. Took secondment to head office for 12 months as a buyer and made senior spirits buyer. After two years moved into current role as senior wine buyer in January 06. “I always had a passion for beers, wines and spirits from working on the shopfloor when I was 20 and taking my WSET exams then,†says Draycott. “Sampling Champagne for a living can’t be bad!†|
WINE WRITER Name: Penny Boothman Job: Freelance wine writer Main tasks: Writing features for drinks magazines and websites around the world. Visiting wine regions and drinks companies and conducting interviews. Necessary skills: “Motivation, imagination and flexibility,†says Boothman. “You’re not going to get anywhere as a freelancer if you’re the kind of person who has trouble getting out of bed in the morning. You have to be able to invent projects that publications will want to hear about and invent new angles for tired old topics, but you also have to be able to respond quickly to commissions and organise your own time to meet deadlines. Being able to write in different styles to suit different magazines is crucial, as is having a decent palate as a wine-taster – you’ll be caught out pretty quickly if you don’t know what you’re talking about.†Approximate salary: “As you’re only usually paid on a per-word rate, how much you earn depends entirely on how much you work.†Future: “You never know what’s around the corner. Do you keep writing freelance, do you move back into the editorial staff of a publication, or do you start publishing wine books instead? That’s part of the fun of it for the first few years, but I can’t say how long it will be before the novelty wears off…†|
| STORE MANAGER
Name: Gemma Verdegaal |
CELLAR MASTER/WINEMAKER Name: Adam Mason Job: Cellar master/winemaker Klein Constantia Estate Main tasks: “As the winemaker in charge it is my responsibility to ensure that every bottle of Klein Constantia wine lives up to the reputation of the winery and the reputation of Constantia itself,†says Mason. “Daily liaison with the viticulturist/farm manager on progress in the vineyards, decisions relating to the harvest date, choice and use of coopers, winemaking approach to each product, quality control, blending, packaging feedback and suggestions, management of a team of assistant winemakers and cellar workers, new product development.†Career history: “My first job was as a junior assistant winemaker for Direct Wines in the Midi in the South of France. I worked there for four vintages. Due to the seasonal nature of the work I was able to come back to South Africa and work harvests here. Next was a few years as general manager/winemaker for IWS (owned by the Waverley Group) based in Cape Town and primarily making wine for the UK supermarket trade as well as Waverley’s on-trade clients. After nearly three years I was thrilled to be selected to take over the reigns at KC. Future: Ultimately to be self-employed and to own my own wine brand. Perhaps consult to potential winegrowers. |
© db November 2006