Online wine information and retail platform, Oliver’s Wines, created by internationally renowned wine critic, Jeremy Oliver, is stepping into the physical world through a partnership with leading liquor retailer, Tony Leon. The company has launched a $3 million capital raise on Primary Markets to get things moving.
Australia’s wine retail landscape is ripe for change. While the number of quality small independent retailers continues to decline across all major cities, the big end of town isn’t finding it easy either. Over the last year the share price of the Endeavour Group, owner of Dan Murphy’s and BWS, has declined by 20 per cent. Oliver has heard reports that Coles Liquor’s consolidation of its 984 stores under the Liquorland banner is already leading to reductions in range and choice.
Having operated exclusively in the online space for just over 12 months, Oliver is now focused on developing strategically placed and highly visible landmark stores tightly connected to the Oliver’s Wines online platform. The company is currently looking for a space to start a flagship space in Melbourne, and they plan to follow up with launching locations in Sydney and Brisbane.
“A high-profile bricks and mortar presence can drive sales via our online platform in a way that is too hard to deliver when purely online, and we can do things at a store level that are too hard for the big guys and too challenging for most of the smaller ones,” said Oliver.
“There are so many middle of the market brands – say $25-$45 – that are just pumping out amazing wine, year after year, faithful to the region, the style, and the vintage, with great intelligence and commitment.
“Those are the sort of wines in particular that perhaps haven't got the marketing budget, and can't afford to buy the shelf space. I can see a strong focus for us with those brands, as well as bringing in more international representation.”
With physical stores supported by the steadily increasing depth of free content and online experience at olivers-wines.com.au, Leon and Oliver aim to reach and engage with Australian wine buyers who value individual attention.
Oliver’s Wines recently launched a capital raise, aiming to fund cost of goods, purchase and set up of a storefront, operating capital and IT systems, and marketing and remuneration.
“I’ll never forget the reaction when I first mentioned this idea to Tony Leon. He said, ‘Jeremy, I don't think my face is telling you how excited I really am, because the timing is perfect for this kind of evolution of retail strategy and engagement,’” said Oliver.
“We’re getting really encouraging responses from people, with phone calls from shopfitters to wine brands saying ‘hey, don't forget us, we'd love to be part of your journey’.”
The transaction overview stated equity available for this investment of $3 million is up to 42.86 per cent of the total business, the enterprise value of the business is $4 million, and the minimum investment value is $50,000.
Oliver told Food & Drink Business the emphasis would be on wine quality and selection, helping customers to expand their knowledge and palate, and walk out with a wine that they know they're going to enjoy.
“The goal is to create an engaging user experience, above and beyond what other stores are able to offer,” said Oliver.
“That basically translates to having a huge amount of wine available for tasting. Each of those flagship stores would have a wine bar incorporated into them, which would enable people to do tasting flights, and get information and recommendations, the things that people enjoy at cellar doors.”
By establishing a space that will run courses, host events, and offer a place to learn and connect over a flight of carefully selected wines, the focus is on community.
“When I first got into wine, quite a long time back, it was very much a joy, and a journey of fascination and discovery. There was a lot of excitement attached to it,” said Oliver.
“I think with the way that the retail market has evolved in Australia, it's difficult for major players to recreate the vibe that existed back then, and still exists in some beautifully run private liquor stores.”
Industry expertise is the foundation of the company, with Oliver telling F&DB that the goal was definitely to attract knowledgeable people in the industry, but to also develop a staff training program that sets employees and customers up for success.
“We would love to have a situation where we're attracting some really good people, but our staff training aspect would be something pretty special,” said Oliver.
“This industry has a generational tradition where you hand down to those coming through what you've been fortunate enough to pick up. I was very lucky to be mentored by a lot of amazing people, first of which was actually Dan Murphy, and it's great to be able to give that back.
“It would be wonderful for our business to have a reputation for giving the best staff training in Australia, that would make me very proud,” he said.
