The latest Plimsoll Analysis found average profit margins have fallen to 5.2% of sales, and 211 of the UK’s top 711 wines and spirits wholesalers are now running at a loss, a finding that would lead you to believe the industry was suffering with chronic oversupply, rising costs and severe pricing issues. However, the same study has revealed 56 businesses are making record profits.
David Pattison, senior analyst at Plimsoll, said: “Sometimes the public perception of profit is wrong. It’s seen as companies taking advantage of their position or exploiting their commercial advantages unfairly, but these successful companies should be proud of their achievements. In an industry not known for its successes, these businesses should act as benchmarks to the rest of the industry, showing what can be achieved.
“For the companies that are falling behind, they need to re-evaluate their strategy and retain profit in order to improve their financial strength.”
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