Conviviality sees sales soar to £1.56bn

Drinks company Conviviality saw its sales nearly double during 2016 to £1.56 billion, on the back of its enlarged business and ‘one-stop shop’ model.

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The giant drinks supplier, which bought Bibendum PLB just over a year ago, saw sales rise 85% in the year to 30 April, it reported this morning, compared to last year’s figure of £841 million.

Over the last few years the business has been transformed from a franchised off-licence business and retailer into the UK’s largest drinks wholesaler and distributor, supplying the multiple grocers, independent off-trade and its own franchised businesses, as well as the on-trade and events.

There was growth across all three of its business units, and the company reported that underlying sales for each unit had been strong throughout the year with “good organic growth compared to the corresponding prior period”.

Conviviality Direct, which caters for the on-trade through Bibendum and Matthew Clark saw sales up 6.4%, to £1.04 billion, with growth driven by an increase in the number of outlets supplied (up 1.6% on last year), as well as an increase in sales per outlet, which rose 4.8%. The company noted it was a “strong indication of customers switching to a ‘one stop shop’ model as they benefit from the combined range and expertise of Matthew Clark and Bibendum”.

Its off-trade business, Conviviality Retail, which includes the franchised off-license business and retail stores under the Bargain Booze, Bargain Booze Select Convenience and Wine Rack fascias, grew 6.1% with sales of £374 million compared to £359 million the previous year. Like-for-like sales were up in the second half of the year, it noted, rising to +0.5% compared to -2.0% in the same period in 2016.

Meanwhile Conviviality Trading, its event business, saw more modest growth of 1.0% with sales of £146 million. But the company said this growth reflected the boost that through from the wider reach of the enlarged group.

Chief executive officer Diana Hunter said she was please to report strong trading at the end of an “unprecedented year of change”, adding that it was encouraging to see customers and suppliers benefiting from the skills, expertise, scale and reach of the enlarged group.

“We have made great progress on the integration of Matthew Clark and the acquisition and integration of Bibendum PLB Group. Our focus will continue to be on improving the business and ensuring that benefits are realised from our greater scale, as we drive efficiencies for the Group and greater service for our customers.

Earlier this week, Conviviality’s CEO Diana Hunter was named as the Drinks Business’ Woman of the Year in the 2017’s Drinks Business Awards.