Queena Wong of Curious Vines and Vicky Ilankovan of Equal Measures UK discuss some common misconceptions about enacting inclusion within business
A common theme is that, when we speak about inclusion within our industry, we are immediately directed to the PR or marketing department. Most organisations lack a core permanent budget for change management, indicating that inclusion is not a priority. It is instead viewed either as a sparkly add-on – an attractive point of sale when viewed by consumers and trade professionals – or something entirely external to them that does not need to be embedded into their infrastructure.
While the outward showcasing of inclusive company values can increase consumer attraction, spend and loyalty, according to LSE Business Review, solely funding this from the communications budget misses true understanding of using inclusion as a key motivator to improve commercial performance. Until budgets are redesigned with committed annual funds for inclusion transformation, this opportunity – which both supports staff and increases profitability – will continue to be missed.
Commercial growth
Embedding authentic inclusion into a company structure and culture through systemic, measurable, cross-departmental change, is proven to increase profitability, unlock new customer bases, reduce staff turnover, improve team performance and drive innovation. Research from Deloitte, Boston Consulting Group, the Harvard Business Review and Forbes all show that workplace diversity results in a 33% increase in EBITDA. Companies with a diverse board of directors were 43% more likely to see above-average profits.
A sense of belonging at work leads to a 56% increase in job performance, 50% reduction in staff turnover and 75% decrease in sick days (Better Up). Ethnically diverse workforces are 36% more likely to outperform the industry median on profitability (McKinsey & Company). They are also 87% more likely to make better decisions as often ask more questions, process information differently, and have less blind belief in the status quo (Culture Ally).
Equity, Diversity & Inclusion (EDI) is not a PR strategy. By making your workplaces authentically inclusive and tracking metrics across departments, you can truly drive change, both ethically and financially.
Outside the M25
Additionally, regionality often gets forgotten when considering inclusive business practices. Purchase of alcohol in the off-trade has risen in the past year, nearly matching the record-breaking Covid-19 lockdown levels (ONS). As the cost of living rises, consumers are drinking at home more, creating opportunities for brands. However, when we look at inclusion within retail, it is important to consider regional bias.
As a non-profit servicing beneficiaries nationwide and working with the global industry to improve inclusion at all levels, Equal Measures UK has tracked brand focus and investment in people and markets. Its EDI business consultancy has uncovered a common theme where brands follow old routes to market based on economic assumptions, which often see the south as a sole focal point.
While London and the south are vital markets for high-end products, not giving serious consideration to other regions can prove shortsighted. North east England typically records high off-trade sales, while London records some of the lowest per-adult off-trade-consumption. Scotland has a higher level of off-trade spirits sales than England and Wales. This is not always reflected in the marketing and sales plans of brands, or trade education.
A crucial piece of this puzzle is the front-facing trade professional. Research from the National Restaurant Association indicates more than 80% of consumers learn about new brands at bars, while NIQ estimates that the average bartender influences nearly 11,000 purchasing decisions annually. In spite of this, and the high off-trade spend in the north, a huge amount of brand advocacy is concentrated around London. But, over the past decade, it has become oversaturated with trade events, leading to low turnouts. Curious Vines is leading on geographic inclusion, building regional satellites, bringing education, development awards, tutored tastings and development workshops to all.
Authentic inclusion has the power to supercharge a business’s profits, elevate a brand and make employees feel they can thrive. Our clients and producers are demanding their UK supply chain falls in line with their own sustainability ethos and soon will require proof they operate as inclusive employers. By looking at the big picture, we are able to make a true impact on our industry and businesses.
