Laithwaite’s – Boutique Wines at Everyday Prices ?
10th August 2015
It’s a quiet Saturday in August, the sun is shining, few will come to the shop, so there’s time for a meditative review of one of the UK’s largest wine businesses, Laithwaites (and for those who don’t know already, Laithwaite’s also owns Avery’s and runs just about every wine club you might have heard of, e.g. Sunday Times, British Airways, National Trust, etc. etc.). Laithwaite’s tale of growth - from Tony Laithwaite bringing back a van load of wine from France in 1969 to a huge wine business operating in several countries today - is amazing. One should be proud of this great British success story….
….BUT (there’s often a large BUT in an SVS blog) this blog was prompted solely by the appearance through my letter box at home of their latest offer trumpeting “Boutique Wines at everyday prices” (and everything in quotation marks below comes from this brochure or their website). I was piqued. Leaving aside the actual desirability of “boutique” wines – as so many tend to be over-made, over-priced wines owing more to the pretensions of some rich owner than the land on which the vines are grown - this is an absurd claim. “Boutique” has no legal status in the world of wine but it does imply small-scale and precious. In Australia the rules of the Association of Boutique Winemakers are clear: “A Boutique wine company is one which crushes and bottles 250 ton or less annually under its own label and is owned independently, i.e., not owned by a larger wine company”. Well, as to the precious idea, ignoring the discount in the Laithwaite’s brochure, the average bottle price of the wines featured, is, in theory (for more of the “in theory” part, please see below) over £9.00 a bottle, not really boutique territory when it comes to wine.
Anyway, investigation followed, and as I researched more, I got tetchier…
First, the selling pitch is based on claims that “boutique” wineries are “queuing” to work “so closely with wine drinkers”, with, wait for it, “no middlemen, no money wasted on expensive marketing”. Umm, what exactly is Laithwaite’s but a middle man? And whilst it’s good news of course, that these humble peasants are spared all this marketing effort, it’s bit rich to imply this cost has vanished given that Laithwaite’s spends squillions every year on marketing in advertising and sponsorship! Incidentally the idea that the Laithwaite’s customers are “helping…wineries to keep costs down by ordering together” is a shameless rip-off of the more innovative Naked Wines philosophy (and it does seem a bit unfair to steal Naked’s clothes!).
So who exactly are these “talented winemakers struggling along selling a few cases at a time to restaurants and private clients”, these guys who are making “handcrafted wines at remarkable prices”, pathetically grateful to Laithwaites for so graciously taking “the lot in one go”, thus enabling them to have “more time to make great wine”? The briefest perusal of the brochure comes up with these: Vina Tarapaca in Chile, part of the VSPT wine group, Chile’s second largest wine exporter; Franschhoek Cellars, a former co-operative and now part of DGB (which was Douglas Green Bellingham) in the Cape, producing a very unboutique 8,000 tons, equal to 560,000 cases a year; Martinez Bujanda in Rioja, with over 200 hectares of vineyards; Mcpherson wine with 225 hectares in Australia; and Luis Felipe Edwards, the largest family owned winery in Chile, who somehow make ends meet by picking every last grape on their 1850 hectares and exporting to 70 countries. (Just to put this in perspective, many of the growers we buy from in France and Italy make wine from less than 10 hectares of vines, and Frank Balthazar in Cornas has just 2.25!). Doesn’t one’s heart bleed for these impoverished, time-poor souls, and applaud Laithwaite’s philanthropy in saving them. Laithwaite’s say they are selling wines “made in quantities too small for the supermarkets”, but when you claim to have 100,000 thirsty customers and a turnover of £300m it’s quite hard to supply them without going to the big boys of the wine world.
Next, the pricing: I examined one case of the twelve on offer in the brochure, no. 9, Pinot Grigio and Friends. This cases includes two bottles of each of four Pinot Grigios - from Romania, Hungary, Australia and Italy - plus a Chenin Blanc (from the Franschhoek Cellars mentioned above) and an Italian blend. The headline printed price is £105.49. (I accept the brochure is three weeks old, but when I totted up the bottle prices of the wines on their website in the case I came to £101.88). But the idea that these particular bottles are worth an average of £8.79 is ludicrous. C’mon guys…. eastern European Pinot Grigio, making up a third of the case, is just NOT boutique wine in either style or price!
Then there’s the exclusivity claim - your chance to taste “wines not otherwise seen in the UK!”. Wow, lucky you. The reason these wines are not otherwise seen in the UK is that they are specially made, in some cases in Laithwaite’s own winemaking facilities in France and Australia, and labelled solely for Laithwaite’s (and their numerous affiliate clubs). This is very bad for two reasons: the obvious downside is that they can control pricing and make sure price comparison is impossible. (When you do find a wine on their website which is available elsewhere Laithwaite’s look expensive. For example Guigal’s white Cotes de Rhone is £13.99 on their site, but available from the Wine Society at £9.95 or widely available from independents at £11.95). But, far more serious, if Laithwaite’s are controlling what goes in the bottle, you aren’t necessarily getting a wine with authenticity and local character (god forbid it should be unfiltered and have sediment in it, as that might lead to complaints and refunds): you will be getting a safe, boring bottle for MOR taste.
Then there are the names and brands. I am all for making wine names accessible and demystifying wine, but is it helpful to have Romanian wines branded Paris Street? Surely someone casually looking at the bottle might just think it was from France - or is that the idea, duh? Or Spanish wines sold under Lime Leaf, Silver Route and Cherry Orchard? When it comes to Italy the highly paid branding team at Laithwaite’s must have been giggling as they dreamed up catchy names. Basically they like to add an O to the end of english words - so Laithwaite’s purvey wines called Massivo, Il Bruto and Visionario. Can anyone take this seriously? Somehow I just can’t see someone with boutique wine aspirations naming their wine Massivo. Why stop there – may I propose Diluto for a light dry white, and Ruffo for a rustic red?
Then there’s the hyperbole. Do their copywriters really believe that the 2013 Orange Grove Chardonnay from Spain at £5.99 is “world class Chardonnay”? Do they get out much? Do they actually drink wine at all?
Then there are the introductory discounts - £50 in the case of the brochure I received. This would enable me to buy a case of wine with free delivery at £4.39 a bottle, with two free glasses thrown in. It’s a great deal by any standards, but if I send that siren coupon in there are consequences. I will get another case 12 weeks later, if I forget to cancel, without that great discount; and I will be subject to warm-calling if I don’t order more, by a huge team of client advisers trained to push particular wines; and if I still don’t order my name will be transferred to another branch of their organisation who will also send me their lists. Finally, if you do give them the feedback they request, then, google-like, their algorithms will ensure you are pushed more and more of the same. Returning that coupon is like signing your palate away to the vinous devil.
Laithwaite’s is a great business, with thousands of happy customers. I have tasted lots of perfectly good (if often unexciting) wines from them, and they work with plenty of excellent partners – Luis Felipe Edwards in Chile being a good example. But if the gap between the claims made in the “Boutique wines at everyday prices” brochure and the reality of their business can’t be investigated under the Trade Descriptions Act, at least it can be challenged by someone who genuinely does work with small growers. Just as they have cynically adapted their marketing spiel to make Laithwaite’s look more like Naked Wines, their fast growing challenger - “Together it’s easy” it says on the front of their brochure - so they shamelessly continue to pretend that they are supplying small production wines from artisanal growers. When we started SVS over a decade ago, one customer was kind enough to describe us as the “the new Adnam's”. I took that a compliment, given Simon Loftus’s great ability to seek out interesting wines. I am glad to say no-one has ever called us the new Laithwaite’s. But then I could just be jealous of that £300m turnover….