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10 April 2024

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Photo for: In Conversation With James Mackenzie, Marketing Director, Alliance Wines, UK

Interviews

In Conversation With James Mackenzie, Marketing Director, Alliance Wines, UK

James Mackenzie, Marketing Director at Alliance Wines, speaks to London Wine Competition team about how they respond to COVID-19 in terms of business.

James Mackenzie is the Marketing Director from one of the UK’s leading wine importers and distributors – Alliance Wines. With a large proportion of their business dedicated to the on-trade, then their business was in the eye of the COVID storm, quickly followed by the issues which Brexit may bring.

Their wine philosophy for over 30 years has been to work with innovative, colourful and creative individuals who share our drive and enthusiasm for wine. Their carefully selected producers make the best wine possible with the least intervention and that is only the start. It is not only about the environment. It is also about ensuring beneficial relationships for all involved.

How was 2020 going before Covid-19?

It was going fine. We were laying out our plans for the year and we were positive with the challenge of Brexit ahead of us and all the uncertainty that brought. The beginning of the year had a good feeling, we had just completed our annual tastings in Edinburgh and London and they had been well received, our portfolio was as strong as it had been in years with some nice additions and we were having interesting discussions with our customers too.

How did you respond as a business to the lockdown in terms of managing teams and furloughing staff?

As we lost about 80% of our business overnight with lockdown we responded promptly to try to keep the ship on an even keel. All salespeople and many others were put on furlough leaving the leadership team to continue the business and focus on the sales channels that were still available to us. It was a difficult time but it was also very comforting to see the camaraderie that was produced through the adversity and how people pulled together to get things done.

How have you found the various teams working from home – any challenges and how did you overcome them?

Running the marketing team, I think I am lucky, in that my team have been together for a while now and we are comfortable in our roles and know each other well. So the transition to home working has not been particularly difficult. Regular team meetings, at least once a week, to catch up have been invaluable. Just to chat as much as discussing work matters. A very important way of keeping up morale and checking in on how people are doing. I think that has been the most important thing – to make sure no one’s mental health was suffering unduly.

Have you seen an increased demand from retailers selling online? If so, what trends did you see there in terms of styles of wine and prices people were paying

Am not sure there were any particular trends that stood out, obviously, the more well-known wine regions did well as people wanted comfort and some form of assurance in what they were buying as they were surrounded by all this uncertainty. I don’t think there was a huge increase in average spend, but there was definitely no race to bottom either. I think people still wanted to drink a nice bottle of wine.

How has the physical distribution network (warehousing, couriers etc) coped?

They have been incredible. Our warehouse and customer service teams have been working incredibly hard, at certain points it was busier than Christmas in terms of number orders being processed and they just dealt with it. Under incredible pressure, and at the same time as dealing with all the new social distancing measures that were being put in place, looking back it was tremendous what they did. These teams don’t often get to be in the spotlight but they really showed their worth.

How were your off-trade sales during the lockdown and what lessons have you learnt?

We definitely saw an increase in the independent off-trade, and we were very grateful for it. The speed with which some of our customers turned their businesses into delivery services was impressive. It was very interesting to see such an increase and with some of the larger online operations have initial difficulty in dealing with the volume of orders it definitely gave a boost to local retail and one that we tried to support by keeping our service to them flowing and in good time.

How about the on-trade? What steps have you taken to keep in contact and support your customers?

Throughout lockdown, the heads of the sales were keeping in contact with as many customers as possible. We really did take the attitude ‘in this together’, so we wanted to keep in contact to see how we could help if only to offer an ear and some empathy for what was going on. As lockdown eased in the summer and places re-opened we worked closely with customers to review their wines lists assessing them to make them more manageable and relevant for either their new takeaway services or refocused on outdoor, alfresco drinking. 

What changes have you seen in the on-trade since the lockdown has been lifted?

Where do start? It’s a completely different world with social distancing, track and trace and new hygiene regimes. It has been very tough for some to adapt, not all establishments are as able to do it as easily as others. Sadly some customers have yet to re-open, and others have been amazing in their ingenuity and determination to keep going. From takeaway and delivery services to outside dining and just making a visit easy and uncomplicated to ensure it’s still an enjoyable experience. The on-trade has really tried to its best.

What kinds of wines are being bought? What impact has there been on pricing and size of drinks lists?

I don’t think there has been much change in the kinds of wines being bought, each customer, quite rightly, has stuck to what they know over the last several months. Pricing I don’t think has altered much either, but the size of lists has reduced. At least, we have encouraged and advised this as a practical way of managing stock levels and when looking at the extent of the business customers will be doing and the new styles of business they are employing. This may continue as shorter lists really benefit everyone from us to the end consumer.

What have you done in terms of online tastings and Zoom events?

Well, they really are the ‘new normal’. We have been offering online tastings for customers with producers since very early on in lockdown. Without having the luxury of getting producers to come over into the market, online tastings are the next best thing and really can work well. Certain customers have been setting up tasting series for their customers which we have happily got involved with. 

In fact, we were doing online tastings with some of our southern hemisphere producers even before lockdown as a convenient way of getting them in front of customers and salespeople. We have even set up our own Alliance Wine Tasting Club, which meets fortnightly hosted by a producer or the Buying team where all the salespeople can get together, try a range of wines and have chance to catch up with one another. It has been a great morale booster.

What lessons and opportunities have you learnt for the future in terms of how you do tastings and events?

I think digital will play an increasing role even when things return something approaching normality. I am not sure what that will look like, but we have embraced so many technologies to deal with the pandemic that there are opportunities, for marketers, to continue to make use of them and fold them into what we have previously done. There is no going back, and they really could make tastings better, more relevant and effective. 

The Brexit issue still looms - what impact, if any, do you expect to have?

If I knew the answer to this I would sleep a whole lot better. It is another huge uncertainty that we can only try to prepare for and be resolute in facing. The business was working hard before Covid to prepare for Brexit and we have continued to do so. I think it is about being flexible and being ready to react and evolve as matters unfold. The one thing that is certain is it will have an ongoing impact that we cannot ignore. 

What are your thoughts on what might happen over the next six to 12 months? Are you optimistic or pessimistic?

We are resolute, and you have to remain optimistic otherwise what is the point? We are preparing as best we can and look to take every opportunity that presents itself. There are some great challenges coming down the road and we think the business, the people and our approach are preparing us well to take on these challenges.

What will be the key factors that will determine the success that you need to get right?

Good planning and keeping it simple. There are so many factors at play from exchange rates to shipping and the state of the economy – none of which we can control – that you need plan well and not over complicate things. You also need to be true to who you are. Believe in what you do and offer is right is an important part of success. The worst thing we could do is keeping changing strategies to react to each new challenge, you’ll soon lose your way.

If you could have just two wines from the Alliance Range which symbolised 2020& the 2021 expectation respectively what would they be? 

What a question! And one I really have not ever considered before. Ok, so 2020 has been all about being strong and standing together, working as a team – at home or work – to do the best you can. So you’ve got to be looking at southern Rhone, and Guillaume Gonnet Cote De Rhone Villages with its blend of varieties, its strong character and everything in harmony. 

For 2021, well as we have been saying we have to be optimistic, so it has to be Champagne. Pierre Mignon Brut NV. A great grower champagne with lovely mousse, delicate flavour and lingering finish. And if it isn’t a year of celebration, then there are few better wines to help drown your sorrows and pick yourself up!

International and Domestic Submission deadline is February 22. If you are looking to grow your brand in 2024, looking for product feedback, or looking to get in front of real trade buyers. It's time to enter your wines in the London Competitions. Here's how to enter.

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