Bibendum PLB stengthens play for UK

John Osborne, managing director PLB (Multiple retailers)

JO headshot“The major multiples are going through seismic change driven by changing consumer habits and intense competition in the market. This is leading to pressure right the way through the off trade as growth opportunities become limited in their main operating channel. Growth is therefore sought in other channels such as convenience and on-line thus causing pressure on operators in these channels too. This dynamic is leading to pressure on every element of the value chain including distributors.

“The wine category has many players operating in the UK market. As range rationalisation and consolidation of the supply base in the major customers happens it is clear that there will be some winners and losers. Consolidation of distributors is one option open to businesses operating in a tough market. It is my belief that there will be further consolidation as businesses seek to manage their cost base and growth targets in line with the market conditions. Those that manage this well and have a clear strategy will have relevance in the market whilst others will struggle to survive.”

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