Sales top £836M but profits fall at Conviviality

Crewe-based Conviviality, which owns stores such as Bargain Booze and Wine Rack, has announced their latest revenues reached £836.3m in its half year results, thanks to long-term deals with Stonegate Pub Company and JD Wetherspoon. However, shares in the drinks wholesaler have tumbled by 12pc after posting a fall in half-year profits.

The group saw an impressive 8.4% increase in sales during November and December, compared with the same period last year. Elsewhere in the group, Conviviality Retail sales increased 12.3%, Conviviality Direct sales increased 7.7% and Conviviality Trading grew 3.2%.

The company, which is a wholesaler and distributor of alcohol, has signed a five-year agreement with Stonegate, and another deal with Wetherspoon’s.

It also signed a 10-year deal with Wadworth to supply wines to 200 managed and 139 independent free trade outlets.

In a statement, Chief Executive Officer Diana Hunter (pictured above) said: “Our customers and franchisees have continued to recognise the strength of the Conviviality proposition and the opportunities a single supplier and distribution solution affords them.

“This has been evidenced by our above market growth in both the on trade and the off trade during the period.

“We have made deliberate choices to successfully grow market share and enhance the quality of future earnings by agreeing long term contracts with our larger customers and securing new national account customers.

“These gains in market share coupled with our continued strong sales demonstrates our competitive advantage, the broad customer base we have developed and the robust nature of Conviviality as the UK’s leading drinks wholesaler, distributor and solution provider to our customers.”