The runaway growth of tonic wine Buckfast has been stopped in its track by Covid drinking habits as sales fell despite the shift to at-home alcohol consumption.

Newly filed accounts for Buckfast distributor J Chandler & Co show sales reversed by 10.8% in the year to 31 March 2021, falling back to £46.5m from £52.0m in the previous year.

Buckfast had previously added more than £10m of sales in the previous five years – boosted by Scotland’s introduction of minimum unit pricing – and grew revenues by 4.7% last year and over 10% the year before.

Although Buckfast is primarily an off-trade brand and stood to benefit from the shift to at-home drinking, the accounts said Covid caused inbound container constraints, manufacturing and bottling restrictions and fewer social occasions.

It also noted that raw material price fluctuation was higher than in previous years.

Writing in the accounts, joint MD Jane Joyce said: “The effect of the coronavirus pandemic was felt throughout the year.

“Together, we mitigated the impact and challenge of the pandemic whilst ensuring the highest standards of controls to ensure the wellbeing of all our staff.”

It said it had seen “encouraging signs of recovery” since year end, with sales recovering back towards 2019/20 levels, but cautioned over the uncertainty of the success of public health measures allowing a return to “normal life”.

Buckfast had previously been a beneficiary from the Scottish government’s introduction of minimum unit pricing on alcohol in 2018 as its pricing was not affected by the legislation, while rival drinks saw prices increase.

J Chandler & Co did not respond to a request for comment.

Gross profit margin fell from 17.1% to 15.2%, resulting in an operating profit fall from £4.7m to £3.5m. The accounts said 2021/22 would continue to be “challenging”

 

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