Q&A: Michael Saunders, CEO, Coterie Holdings

You've recently acquired some new agencies at Hallgarten & Novum Wines - Do you also plan to streamline elements of your portfolio?

There will be a small amount of streamlining. However, our primary goal is to create a world-class portfolio of wine producers that our clients can list with confidence. There will be further announcements regarding new agencies in 2026.

Yet global wine consumption dropped 3.3% in 2024 - the lowest since 1961. Are you not concerned?

I'm naturally a glass half full type of guy. I have managed companies through recessions and despite the generally pessimistic outlook, people are still drinking wine! However, we are living through a period of immense difficulty – a perfect storm of declining consumption, a growing moderation trend, and an economy in a state of flux. The trade will have to make significant changes if it hopes to survive and come out stronger at the other end. There is an oversupply of importers and several businesses are struggling to make a decent return.

But there is cause for optimism, too. Retailers are adapting: the hybrid model has proven to be very successful in both urban areas and market towns. Ultimately, our goal is to consume a larger slice of an overall shrinking cake. Yet investment to inspire growth is fundamental to this strategy: 18 new recruits have joined the Hallgarten & Novum Wines team in the first half of 2025. Last year, Coterie Holdings also acquired Global Wine Solutions (GWS), a provider of fine wine and spirits to the superyacht industry. So we're going to expand this operation significantly, as it is a buoyant market. Meanwhile, new customers and suppliers are joining the Hallgarten family. The key, as always, is to offer wines that suit evolving market trends.

How is Coterie stepping up to support hospitality partners facing squeezed margins and cash flow challenges?

Indeed, hospitality businesses are facing a myriad of challenges today. We continue to offer high levels of support and advice to our clients – we do a lot of work around staff training. Unfortunately, some of these headwinds – including the ABV-driven duty system – are difficult to mitigate. The changes to National Insurance contributions and the Extended Producer Responsibility (EPR) scheme are both huge issues for the trade.

Do you think the trade needs to lobby harder for government relief?

Absolutely. Historically, the trade has worked with UK governments in an attempt to map out a sensible policy framework in the spirit of cooperation and dialogue. Yet I'm not sure this approach is working today. It is time to bare our teeth – we need to lobby hard for essential changes to the taxation and regulatory framework. The gloves need to come off.

Given the UK's challenging environment, how are you balancing investment overseas with consolidating strength at home?

We have always been clear that Coterie's ambitions lie beyond the UK. I want to steer a group of global businesses that work well together. We plan to expand our infrastructure projects in Asia, however, I cannot provide firm details at this point.

Under your leadership, Coterie has acquired Hallgarten & Novum and invested heavily in Lay & Wheeler. How do you determine which businesses to acquire?

It's never an emotional decision. Firstly, I have to believe in the existing management team: we want to help build businesses rather than micromanage them. We also want our acquisitions to take us into markets and sectors that we don't currently inhabit. Global Wine Solutions is a classic example of this. It's a perfect fit for our business.

Finally – Where are the opportunities for independent retailers and restaurants in 2025?

In a word: experimentation. Today, it is far easier for consumers to learn about the wine – or grape - that they're drinking. As a result, merchants are selling a lot more off-piste styles and the esoteric is in vogue. You could describe the current mood as drinking less but better – and more interesting. Lower alcohol styles are also becoming more important, both from a lifestyle and tax perspective. Eastern Europe continues to impress, while the global tourism sector is booming.

Meanwhile, Prosecco's hold over the UK sparkling wine market is weakening. Of course, Prosecco did a wonderful job of upending consumer expectations – fizz became an everyday lifestyle choice that was not limited to Christmas and birthdays. But other categories such as Franciacorta and Cremant are now gaining ascendancy as consumers look beyond the established classics. Today, there is a thirst to explore the road less travelled. The opportunities for 'periphery' styles in the independent sector and premium on-trade is unprecedented. The paradigm has shifted.