New data reveals that small wine suppliers in the UK experienced an uptick in average sales revenue, rising from just under £1.3 million in 2023 to nearly £1.5 million in 2024. Despite this growth, the businesses saw a significant decline in profitability, with the return on inventory spending plummeting by almost 54%.
According to a report by inventory management software provider Unleashed, which analyzed the performance of the UK’s food and drinks industry, small wine suppliers generated only £2.61 for every pound spent on inventory in 2024. This marked a sharp decline from £5.61 the previous year, highlighting a notable squeeze on margins.
The findings come as part of a broader industry report covering seven grocery categories. Overall, the data showed that total sales across these sectors surged by almost £2.1 million in 2024, representing a 17% year-on-year increase, largely driven by a spike in sales during the third quarter. Notably, drinks companies saw a significant boost, with average sales climbing 76%, from £708,000 in 2023 to £1.25 million in 2024.
Despite these positive figures, the research indicates that manufacturers, wholesalers, and retailers are still grappling with squeezed margins, even as inflationary pressures from 2022 and 2023 have started to subside.
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