Majestic profits up thanks to fine wine

27 June, 2008

A 25% rise in fine wine sales helped Majestic to boost profits for its full year, the group has announced.

But the company

warned

increased costs will have to be passed on to its customers this year, with prices rising by around 10%.

Majestic sales and pre-tax profits rose 3% to £197 million and £16.7 million respectively for the 12 months ended March 31.

Leading the performance was strong growth in fine wine sales, which Majestic said now made up around 4% of the UK's retail wine purchases.

The group plans to put fine wine display areas in a further 10 stores this year, bringing the total to 55.

Average spend on a bottle of wine was also up, something the industry as a whole will welcome as it contends with duty rises and a wavering economy.

Majestic said average spend per transaction rose 8% to £133. The average bottle price of still wine purchased increased to £5.98 from £5.75 last year.




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Richard Hemming MW: beware inverse snobbery

Few things can bring communal pleasure so intimately as wine. Apart from a hot tub, perhaps. Sport can trigger mass jubilation, film gives us shared empathy, but wine has a nigh-unique ability to bestow conviviality among us through a shared bottle – which makes it especially galling that we spend so much time divided over it.

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