Diversifying in to cafes, bars and events are key for growth hears March for Indies conference

By Arabella Mileham

Published: 06 March, 2015

Independent merchants are seeing growth through expansion and diversification, moving from a purely traditional merchant and wholesale model to embrace new revenue streams, the March for the Independents conference heard.

Ted Sandbach makes his point during the independents' panel Ted Sandbach makes his point during the independents' panel

Ben Stephenson of hangingditch said it is important to be open-minded and brave in trying new ideas. The Manchester-based merchant, who operates a busy bar in its small shop, says it is important for a business not to stand still.

Ben Stephenson and Ted Sandbach join in the debate Ben Stephenson and Ted Sandbach join in the debate

Ted Sandbach, owner of The Oxford Wine Company, agreed. In 2013, he bought and opened its first wine café - a European style bar. "It is a different dynamic being a café than being a just a wine shop," said Sandbach. "People are happy to spend more if they are having a good time, and often buy a bottle to take away."

The concept of going from selling to pouring wine is a popular one, agreed Stephen Finch of Vagabond Wines. His original idea was to get people away from supermarkets by offering tastings, but the sampling in his store has developed to an income stream in its own right.

"It was an awesome change ot the business plan. When you have higher margins, it gives more flexibility to do things you couldn't do if there are margin pressures," he said.

Matt Harris of Planet of the Grapes agreed greater margins can be made from wet-led sales than going down a wholesale route. But it was vital to get the site right.

Muriel Chatel of Borough Wines said it was important to be able to adapt to where you already are. The retailer's refill system was born out of an idea to provide the best quality wines to consumers at the best price, while increasing their own margins.

"It is all about giving value to the consumers," she said. "Customers like it and are not intimidated - and it builds loyalty with the customer, so after a while, they try wines and start to ask questions."

Dialogue with consumers is crucial, said Stephenson. Social media was an increasingly important tool in doing this which can help build relationships over time.

"It keeps you on people's radar and it is a way to communicate directly with them," he said. "But it is important to be creative and not just send out messages about your wine."

Events are another way to pack a punch according to Stephenson. In November, Hangingditch organised a consumer tasting in Manchester Cathedral which was attended by 500 people.

"It was strong marketing message - we are small shop, so we have to make an effort," he said. "It is about not standing still and keeping an eye on margins."