Richard Wheeler of Lay & Wheeler writes in response to Lay & Wheeler folded into Majestic:
It is nonsense to suggest that Lay & Wheeler has disappeared. The decision to join forces with Majestic plc was not a ‘knee-jerk’ reaction to the current recessionary environment; nor was it driven by any financial pressures. Lay & Wheeler was profitable and well funded. Our discussions with Majestic and other potential partners started over two years ago. With the family’s unanimous support, the board has been seeking a strategic partner to enable the unique virtues of Lay & Wheeler’s fine wine consumer services to reach a broader UK and international audience. It would appear that the other top two or three British fine wine merchant brands also have long-term strategic backing.
We have long admired Majestic’s approach to retailing wines and their offering of mixed cases to the public at affordable prices. Their commitment to wine education, training and customer care in every one of their outlets has been similar to our own in Colchester. In our case that commitment has produced and developed many skilled wine advisors who now work for Lay & Wheeler or others and includes Simon Larkin, a young MW, who is head of our fine wine trading team.
Two years ago we shared our company values and vision with Tim How at Majestic and the discussions continued positively and constructively through a period of change in management at the top of Majestic. We were delighted that the new management under Steve Lewis’ leadership endorsed this vision and accelerated the plan into action.
Turning to your comments about Vinotheque, for the record Vinotheque was never part of the 150 year history of Lay & Wheeler. It was an independent privately owned bond which we employed to store reserve stocks for ourselves and our private customers. When its owners got into difficulty in 2001, I and my family without hesitation and at great cost to ourselves stepped in to rescue the bond and to protect our customers' wines and the several hundreds of customers who were utterly unconnected with L&W at the time. We founded Vinotheque, took the business under our own management, restored standards and stability and ensured that the security and care of our customers’ wines was maintained. This operation was conducted without inconvenience or loss to anyone except ourselves, until we could find a reliable and specialist custodian to take over the operation of a business that was never intended to be part of Lay & Wheeler. We retained ownership and control of the property whilst transferring the operating business to the leading specialist in the field – LCB. The arrangement has greatly enhanced both businesses. Why this series of commercially sound and well managed decisions, taken seven years ago, not months ago, and demonstrating very publicly our integrity to customers who trusted us with their wine should provoke such disparaging comment now is a great disappointment.
For me and all the family it has been an emotional step, but one we have taken resolutely and without remorse in the firm belief that it will significantly benefit the Lay & Wheeler brand, our loyal customers and suppliers, the dedicated and skilled staff who work for us, and importantly the thousands of Majestic customers who will now be introduced to Lay & Wheeler’s fine wine range, and the opportunity to build a cellar via our wine plans and portfolio services. This is very good news all round.
There have been various ill informed comments about the terms, these deals are never as simple as they may appear, my family thought Majestic should have paid a little more and I’m sure the Majestic’s Board thought they should have paid a little less. In my experience this is the essence of a fair deal!
Johnny will carry the family banner proudly into the Majestic group with our whole hearted support. It will give me enormous personal pride and pleasure to see L&W enhancing Majestic’s fine wine offering to their customers and increasing their shareholder value. Meanwhile our Colchester Cellars at Gosbecks Park, which you have kindly suggested is part of the social fabric of Colchester, will remain in the family’s independent ownership and I will look forward to continuing to welcome our many friends and supporters in the area to our extensive tastings and wine appreciation dinners as usual.
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