Majestic Wine
Encyclopedia
Majestic Wine plc is the United Kingdom's largest retailer of wine
by the mixed case. (Majestic's own website uses both 'Majestic Wine plc' and 'Majestic Wine Warehouses Ltd'.)
In the late 1970s, wine could only be bought through off licences or specialist wine retailers, usually in city centres, and only during limited hours. Using his merchandising expertise, Graner conceived the idea of selling wine throughout the day via a warehouse, with a minimum purchase of 12 bottles (1 case) to comply with licensing laws at the time. Another innovation was that individual wines could be tasted before buying.
Graner opened his first wine warehouse in Harringay, North London, in 1980, under the management of Tony Mason, brought in by Graner to manage the day to day activities. The second store was opened in Battersea in May 1981. In mid-1981, the group called in receivers, and was bought by investment banker Giles Clarke
, where as Chairman Clarke built it into a UK national chain. From August 1987 to May 1988, Clarke was chairman of Majestic Wine Corporation Inc, a United States company which owned a chain of 104 stores trading as Liquor Barn in California
and Arizona
. Following disposal of the US based businesses, Clarke sold the UK plc business of Majestic Wines for £15 million in 1989 to investors, and went on to form Pet City
.
In 1986, Mason set up Wizard Wine under the same concept, which in 1987 was purchased by retailer Bejam
. After Bejam was purchased by rival Iceland
in 1989, Mason and partners John Apthorp (now retired) and Tim How (CEO until 2008) bought Wizard Wine from the heavily indebted Iceland. In 1991 Wizard Wine purchased Majestic Wine PLC in a leveraged buyout
, and merged under the Majestic Wine Warehouses brand as a private company.
, Hertfordshire
, under the leadership of Tim How (CEO until 2008), Majestic Wine became a public company in 1996, floating on the Alternative Investment Market
(AIM).
Majestic Wine operates as a mixed case retailer, selling a mixture of wine, champagne and spirits with a minimum purchase of six bottles in-store and twelve bottles for delivery and online. Having such a policy has allowed the retailer to offer their customers free tasting, free delivery and free glass hire.
Majestic Wine currently has 156 stores in the UK, owing its expansion and success to a combination of acquisition and development:
In 2007 at the at the International Wine Challenge Awards, Majestic Wine was awarded both High Street Merchant of The Year 2007, and overall Merchant of The Year 2007, on the strength of their "Competitive prices, excellent customer service, impressive range". In the same year, Decanter Magazine awarded them Decanter High Street Chain of The Year 2007.
Wine
Wine is an alcoholic beverage, made of fermented fruit juice, usually from grapes. The natural chemical balance of grapes lets them ferment without the addition of sugars, acids, enzymes, or other nutrients. Grape wine is produced by fermenting crushed grapes using various types of yeast. Yeast...
by the mixed case. (Majestic's own website uses both 'Majestic Wine plc' and 'Majestic Wine Warehouses Ltd'.)
History
Majestic Vintners was founded by Sheldon Graner in 1980. Graner gained his experience as a merchandiser with the John Lewis group, and coupled this with his passion and hobby as a wine broker/trader to set up Majestic. He called the business Majestic after his other passion, collecting early UK postage stamps, especially those of Kings Edward VII and George V. The initial design logo for the company was based on a definitive set of King George V postage stamps of 1929In the late 1970s, wine could only be bought through off licences or specialist wine retailers, usually in city centres, and only during limited hours. Using his merchandising expertise, Graner conceived the idea of selling wine throughout the day via a warehouse, with a minimum purchase of 12 bottles (1 case) to comply with licensing laws at the time. Another innovation was that individual wines could be tasted before buying.
Graner opened his first wine warehouse in Harringay, North London, in 1980, under the management of Tony Mason, brought in by Graner to manage the day to day activities. The second store was opened in Battersea in May 1981. In mid-1981, the group called in receivers, and was bought by investment banker Giles Clarke
Giles Clarke
Charles Giles Clarke , is an English businessman and cricket administrator, chairman of the England and Wales Cricket Board.-Biography:Born in Bristol, Clarke was educated at Rugby School...
, where as Chairman Clarke built it into a UK national chain. From August 1987 to May 1988, Clarke was chairman of Majestic Wine Corporation Inc, a United States company which owned a chain of 104 stores trading as Liquor Barn in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
and Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
. Following disposal of the US based businesses, Clarke sold the UK plc business of Majestic Wines for £15 million in 1989 to investors, and went on to form Pet City
PetSmart
PetSmart, Inc. is a retail chain doing business in the United States and Canada engaged in the sale of specialty pet supplies and services such as grooming and dog training, PetSmart PetsHotel dog and cat boarding facilities and Doggie Day Care.- History :...
.
In 1986, Mason set up Wizard Wine under the same concept, which in 1987 was purchased by retailer Bejam
Bejam
Bejam was a British frozen food retailer which was founded by John Apthorp in 1968, based in Stanmore. The concept of selling only frozen foods was a novel idea at the time, and Bejam grew out of Apthorp's existing family business of E. A. D. Apthorp, who were potato merchants specialising in local...
. After Bejam was purchased by rival Iceland
Iceland (supermarket)
Iceland is a supermarket chain in the United Kingdom and Ireland. Iceland's primary product lines include frozen foods, such as frozen prepared meals and frozen vegetables - hence the name of the company...
in 1989, Mason and partners John Apthorp (now retired) and Tim How (CEO until 2008) bought Wizard Wine from the heavily indebted Iceland. In 1991 Wizard Wine purchased Majestic Wine PLC in a leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
, and merged under the Majestic Wine Warehouses brand as a private company.
Today
Head quartered in WatfordWatford
Watford is a town and borough in Hertfordshire, England, situated northwest of central London and within the bounds of the M25 motorway. The borough is separated from Greater London to the south by the urbanised parish of Watford Rural in the Three Rivers District.Watford was created as an urban...
, Hertfordshire
Hertfordshire
Hertfordshire is a ceremonial and non-metropolitan county in the East region of England. The county town is Hertford.The county is one of the Home Counties and lies inland, bordered by Greater London , Buckinghamshire , Bedfordshire , Cambridgeshire and...
, under the leadership of Tim How (CEO until 2008), Majestic Wine became a public company in 1996, floating on the Alternative Investment Market
Alternative Investment Market
AIM is a sub-market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the main market....
(AIM).
Majestic Wine operates as a mixed case retailer, selling a mixture of wine, champagne and spirits with a minimum purchase of six bottles in-store and twelve bottles for delivery and online. Having such a policy has allowed the retailer to offer their customers free tasting, free delivery and free glass hire.
Majestic Wine currently has 156 stores in the UK, owing its expansion and success to a combination of acquisition and development:
- April 2000 - Majestic.co.uk was launched, offering customers an online service. By 2007, online sales had risen to around £15 million per year with over 100,000 orders.
- October 2001 - Majestic acquired Les Celliers de Calais, whose business was based around the British cross-channel trade. Now known as Wine & Beer World there are three stores in CalaisCalaisCalais is a town in Northern France in the department of Pas-de-Calais, of which it is a sub-prefecture. Although Calais is by far the largest city in Pas-de-Calais, the department's capital is its third-largest city of Arras....
, CoquellesCoquellesCoquelles is a commune in the Pas-de-Calais department near Calais in northern France.It is known informally as the town of the Channel Tunnel. The town comprises a shopping centre, hotels and farm in vieille Coquelles , part of the L'Européene autoroute and the Channel Tunnel terminal.The...
and Cherbourg. - July 2003 - Majestic opened their first temperature controlled fine wine centre at St. John's Wood store. They currently have air conditioning installed at about half of their stores, but the largest amount of fine wine is still housed in the original St John's Wood store.
- October 2005 - Launched Gift Solutions, an online service designed to allow customers to send gifts of less than 12 bottles.
- March 2009 - Majestic acquired the privately owned companies: Lay & Wheeler Ltd, WBI Ltd and Vinotheque Holdings Ltd as the fine wine specialist arm of Majestic Wine Plc.
- June 2009 - Majestic published company report stating that the administrative costs had increased by £6 million from £10 million, head office staffing increased by 10%. Store staffing increased by a little over 1%. The increase in store numbers means that the store staffing increase is actually a real terms decrease.
- September 2009 - Majestic reduced its in-store minimum purchase from 12 bottles to 6 bottles. The minimum purchase for online orders and deliveries remains at 12 bottles.
In 2007 at the at the International Wine Challenge Awards, Majestic Wine was awarded both High Street Merchant of The Year 2007, and overall Merchant of The Year 2007, on the strength of their "Competitive prices, excellent customer service, impressive range". In the same year, Decanter Magazine awarded them Decanter High Street Chain of The Year 2007.
See also
- Nicolas (wine retailer)Nicolas (wine retailer)Nicolas is a French wine retailer, which also has a number of stores in other countries.Nicolas is a French wine specialist established in Paris in 1822 and operating in London since 1989.The first Nicolas stores were opened in Paris in 1822, and the chain has since grown to include over 400...
- First Quench Retailing
- OddbinsOddbinsOddbins is a United Kingdom-based wine and alcohol retail chain, established in 1963 by Ahmed Pochee.-History:In 1963, entrepreneur Ahmed Pochee starts up a small business delivering bin-ends and oddments of wine to the restaurants and clubs of London's West End...
(formerly owned by the French Castel)