▻ How to Build a Wine Empire
In conversation with Michael Saunders of Coterie Holdings
Episode Summary:-
The name Coterie may not be familiar to many people, but there is no question that won’t last for long. Coterie Holdings is the holding company for a number of wine companies, including the historic fine wine company Lay and Wheeler, the importer and distributor Hallgarten and Novum Wines, as well as two new businesses, Coterie Vaults, the largest purpose-built fine-wine facility to date, and Jera, a specialist lending platform, where wine collectors can secure short-term loans against their fine wine collections.
Sarah Kemp talks to its CEO, Michael Saunders, who joined the company in January 2024. Michael co-founded Bibendum, and spent 40 years building it into one of Britain’s most dynamic and successful wine companies. He is now on a mission to make Coterie one of the wine world’s major players, and is backed by a private Taiwanese family.
““If there’s a competitive edge against our excellent peers, it’s us being braver, us being first, and us being confident that we have the right knowledge to help our customers.” ”
Since Coterie Holdings bought Lay and Wheeler in 2019, it has increased its revenue by 70%. Michael elaborates his vision for the company: “If there’s a competitive edge against our excellent peers, it’s us being braver, us being first, and us being confident that we have the right knowledge to help our customers.” He is excited about the wines of South Africa and Argentina, but believes Bordeaux and Burgundy will play a major part of the portfolio. “History matters,” he says.
To succeed, Michael believes you need three things – great staff, great service, and working capital; for the first, he began by recruiting some of his team who had worked for him at Bibendum. He believes it is important to know what you are good at and what you are not, and his recruitment strategy reflects that. Since some major hires this year, including Andrew Shaw, he explains that the suppliers can sense the momentum, and some great names are coming on board, including Rioja Alta.
Coterie Vaults stocks 10 million bottles under perfect storage conditions. Unlike other vaults, it has been bespoke-built from the ground up. It opened its doors at Easter 2023, and will be full by the end of 2024. “We understand it is the biggest bespoke wine warehouse in Europe,” Michael says, and reveals that he is looking at opening vaults in other countries in the future. Another new venture is Jera, which has just been launched. He explains that while it is normal for loans to be secured against many assets, such as art, private planes, yachts, wine has not attracted lenders. “If the person defaults, the lenders don’t know what to do with the asset, we do,” Michael explains. They have already issued £20 million worth of loans, and are finding it is not just collectors who are interested, hospitality is too: “It optimises their working capital.”
The company is looking at many opportunities in the fine wine sector and may acquire other businesses if they make strategic sense. Sarah asks what does he think he adds to the mix. “Well, like you, I have a big fat address book,” he says, and also cites trust and energy. He also confesses he is waking up at 5.30am in the morning, raring to go – “I haven’t had this much fun in years.”
Running Order:-
-
0.00 – 11.50
“We have to be confident we can recommend future fine wines as well, not just followers of fashion.”
– Coterie Holdings: Lay and Wheeler, Hallgarten and Novum Wines, Coterie Vaults and Jera.
– How the businesses work together.
– Lay and Wheeler’s growth strategy.
– Why South Africa and Argentina are exciting for collectors. -
11.51 – 18.16
“The suppliers sense momentum.”
– The three things you need to succeed in building a great wine business.
– The launch of Coterie Vaults, the bespoke 10-million-bottle storage facility. -
18.17 – 29.25
“We can provide liquidity in more difficult times.”
– How Jera works – lending money against a wine collection.
– Coterie Holdings long term goals.
– Michael’s view of how to succeed.
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