Finding growth and profitability in a challenging economy
If you’re involved in any facet of the spirits trade and are feeling frustrated or concerned about the multiple headwinds impacting profitability, then do not skip this episode.
On The Spirits Business Podcast this week, Nick Gillett, CEO of Mangrove Global, speaks to editor-in-chief Melita Kiely about the current state of the industry. The conversation covers inflation, tax increases, sustainability pressures, staff recruitment and retention, and market trends.
“The drinks trade isn’t a matter of life and death, but it’s very challenging for people right now,” Gillett says.
Based in the UK, Mangrove was founded by Gillett and John Coe and is a distributor specialising in spirits and liqueurs. Its portfolio includes Chairman’s Reserve Rum, Molinari, Ojo de Tigre Mezcal, Red Bank Whiskey (co-founded by actor Kiefer Sutherland), Stauning, and plenty more.
Asked about the key challenges facing the industry at the moment, particularly in the UK, Gillett says: “It’s a never-ending list, as far as I can work out. And I think it’s worth looking, regardless of the brands that people have and whether they’re owners, agents, importers, distributors, what we all really want is a healthy consumer base.
“Ultimately, we need people out in venues, buying products, in the off-trade, and consuming. You need consumer confidence, and you need money – and we’re all aware of the cost-of-living [crisis] that’s going on. It doesn’t appear to matter which government you have; I don’t think any of them over the last decade have really understood small business and the pressures.”
He continues: “It’s not just the sheer number of pressures, it’s the speed of change that just makes it very difficult to adapt. So this year is probably the pinnacle of challenges for drinks companies.”
In the last couple of years, the spirits industry in the UK has been hit with consecutive duty hikes by both the previous Conservative government and the current Labour government, which was elected last year.
Further insights into topics such as the proposed EPR scheme (discussed before the latest developments were announced) are also covered in this episode. Gillett also shares his views on whether profitability is under threat, both in the UK and internationally, as well as advice on how businesses can remain commercially viable in the current climate, and the importance of storytelling for brand building and success.
The full episode with Mangrove Global’s Gillett is available to stream and download on all major podcast platforms, including Apple Podcasts, Spotify and Amazon Music.
Alternatively, listen and download for free using the Acast link below.
Recent guests on The Spirits Business Podcast have included Lorenzo Antinori, founder of Asia’s Best Bar 2024, Bar Leone, Trudiann Branker, the first female master blender for Mount Gay Rum, and Claire Warner, head of luxury advocacy at Diageo.
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