Majestic profits up thanks to fine wine

27 June, 2008

A 25% rise in fine wine sales helped Majestic to boost profits for its full year, the group has announced.

But the company

warned

increased costs will have to be passed on to its customers this year, with prices rising by around 10%.

Majestic sales and pre-tax profits rose 3% to £197 million and £16.7 million respectively for the 12 months ended March 31.

Leading the performance was strong growth in fine wine sales, which Majestic said now made up around 4% of the UK's retail wine purchases.

The group plans to put fine wine display areas in a further 10 stores this year, bringing the total to 55.

Average spend on a bottle of wine was also up, something the industry as a whole will welcome as it contends with duty rises and a wavering economy.

Majestic said average spend per transaction rose 8% to £133. The average bottle price of still wine purchased increased to £5.98 from £5.75 last year.




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Rosé tinted glasses

I was asked recently what I thought the biggest change had been in wine fashion in the past five years. My answer was unequivocal: sales of pink wines. From being a niche that expanded and contracted with the sunshine, rosé has subtly but steadily become a stalwart of many merchants’ ranges, with Provence firmly at the top and asked for by name.

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