Spaghetti (and) Western

by Chris Losh

Well, I didn’t see that one coming. ..

News hit my in-box yesterday afternoon that Great Western Wine has been bought by Enotria, and I couldn’t have been more surprised if you’d told me that Lord Lucan and Elvis were playing a heated game of cribbage for the honour of riding Shergar in the next Grand National.

We probably all suspected that the fall-out from the recession wasn’t over yet. But this one was an eyebrow-raiser for two reasons: firstly, I always got the impression that GWW enjoyed its proud, regional independence – and was doing a great job, too. They picked up a tonne of awards in our Sommelier Wine Awards, and didn’t appear to be under any financial pressure to sell.

But perhaps more to the point, I’m astonished that Enotria, who have had a profile that has been not so much low as subterranean since equity firm ISIS became the majority shareholders five years ago, should be looking to buy anybody.

People who understand how the world of private equity works have told me that ISIS’s initial plan was probably to spend a couple of years balancing the books, and tidying up Remo Nardone’s somewhat chaotic management structure, then selling up and getting the hell out for a nice tidy profit. Such is venture capitalism...

Unfortunately, this neat plan was kibitzed by the inconvenient appearance of a socking great global recession just as they were about to put up the For Sale signs, which meant that nobody had the money to buy a business like Enotria.

Now, following on from the recruitment of former Majestic chief Tim How last month, I wonder whether the flexing of corporate muscle involved in the purchase of GWW is a further sign that ISIS is looking to pursue a strategy  of organic and acquisitional growth, rather than selling up. Certainly, that’s how I’d read it.

While it’s good to see that Enotria has woken up again, I have to say feel some regret that yet another company with a strong personality has been swallowed up. It’s Hallgarten and Novum all over again. And as with that purchase, the head honcho, Philip Addis, has taken a senior position on the board, and the press releases are making reassuring noises about quality, personality and staff being retained.

Like, er, whatever... Small companies work one way, bigger companies work another. Enotria, naturally, will be looking to streamline costs and merge the two portfolios into a bigger, but tighter whole. A fair few producers, I should imagine, will go by the wayside.

Addis’s line that GWW and Enotria were ‘surprisingly similar’ said it all. As endorsements go it’s less than wholehearted. And while it’s good that a wider number of restaurants will now have access to GWW’s impressive portfolio, I should imagine most restaurateurs feel, at best, ambivalent about this.

It is, of course, possible to get hysterical about big companies buying small ones and to rant about the death of individualism. These kind of deals, though, are not a tragedy. There’s just a rather melancholic inevitability to them - like the family dog dying at the age of 15.

1 comment

Mark D. 20-08-2010

This is depressing news. Through various misdealings with Enotria I view them in much the same way as Americans see BP. But I have always had good dealings with Joel and his portfolio. The one area I disagree on will be how Enotria's relationship with GWW will be very different to how Halgarten will relate to Novum.
I took Halgarten with me each time I ventured somewhere new. Their customer service has always been spot on and actually their range of wines has some real hidden gems. But they have always had that perception of being rather straight laced. Novum (and in particular Steve Daniels) adds some street cred' to Halgarten and according to the last time I spoke to Steve he was saying very positive things about the arrangement.
Alas I see nothing in GWW future that suggests such a happy partnership. Enotia are bottom liners and supermarket feeders at heart, and any business they get from the on trade is just a bonus for them. R.I.P. GWW

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