Majestic, the UK’s largest wine retailer, has announced its intentions to explore a deal to acquire all or part of the Vagabond Wines business.
This move, following Majestic’s acquisition by Fortress Investment Group in 2019, marks a strategic expansion into the on-trade channel.
In its most recent financial report covering the year ending March 27, 2022, Vagabond Wines, known for its innovative ‘self-pour’ wine bars, reported revenues of GBP 7.4 million (EUR 8.6 million) and a gross profit of GBP 5.2 million (EUR 6.1 million).
However, recent challenges including restructuring to clear Covid-related debts and the closure of its profitable Heathrow site earlier this year have impacted Vagabond’s financial stability.
A potential acquisition by Majestic presents opportunities for synergies, combining Vagabond’s experiential wine settings with Majestic’s robust resources. A Majestic spokesperson commented, "Majestic can confirm that it is exploring a deal to purchase all or part of the Vagabond Wines business. Majestic cannot comment further on ongoing discussions but we are hopeful of securing a deal."
Since being acquired by Fortress Investment Group, Majestic has accelerated its growth strategy, opening 16 new stores, expanding its B2B division to supply premium hospitality businesses, and enhancing its role as a leading wine educator in Europe.
This partnership underscores Majestic’s commitment to bolstering its commercial presence. During the first half of the 2023/24 financial year, Majestic’s wholesale arm has already supplied over 300 new pubs, bars, restaurants, and hotels across the UK, solidifying its position as a major player in the on-trade sector.
Source: Harpers Wine & Spirit Magazine