Avery's falls into red as demand for en primeur declines

By Gemma McKenna

Published: 04 March, 2014

Avery's of Bristol has slid into the red as demand for en primeur plummeted in the year to June 29, 2013.

The firm, which was set up in 1793, is now part of the Direct Wines group, which also owns Laithwaite's.

A statement accompanying the accounts said: "Following a difficult trading period the company has incurred an operating loss of £339,934 (2012 £390,683 profit). Whilst cost pressure in the UK market continues with above inflation duty increases the company has managed to maintain overall gross margins. The market for en primeur Bordeaux was much lower than the prior year which impacted results, in addition there were one-off restructuring and dilapidation costs incurred in the period of £314,606."

Direct Wines, the company's parent firm, "has indicated its intention to provide such ongoing financial support as is necessary for the company to continue in operation and to meet its liabilities as they fall due for at least 12 months from the date of approval of these statements".

Avery's

The company's turnover for the period was £14.1 million, down 9.6% from £15.6 million in 2012. The loss after tax was £337,797, a drop of £459,561 on 2012's profit of £121,764.

The firm employs 42 people, of which 36 are in selling and distribution. Head count has fallen by eight people from 2012.

Part of the Avery's business moved into the Direct Wines office in Theale in Berkshire last year. In addition Avery's warehouse moved from Bristol to the main Direct Wines warehouse in Gloucester as the lease on Avery's own warehouse ended last April.

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