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Raise a glass

Posted: 05 May 2019
Estimated Read Time: in 11 minutes

CAVAVIN, the French franchised wine merchant, is looking for partners to grow its business in the UK

Raise a glass

CAVAVIN, is the French leader of franchised wine merchants. Franchising its business since 1996, it now has over 150 franchisees. Founder and chairman Michel Bourel is in his second term as president of the French Federation of Franchise, while CEO Olivier Mermuys, who is Michel’s son in law, joined the company in mid-2016 to continue to internationalise its development.

CAVAVIN has over 11 units in the UK, Belgium, Switzerland, Luxembourg, Ivory Coast, Guyana, Reunion Island and Congo.

UK franchisees

One of the company’s UK outlet is in Sheffield, where ‘le bon vin’ was the first international partner, and has been established in 1986.

Building an extensive network of trade and retail customers over the years, the company has grown from strength to strength and Patrick Jouan, along with his Yorkshire born wife, Dianne, employs a tight knit group of over 20 staff, reaching a turnover of £6 million last year.

Another CAVAVIN wine shop was opened in Hertford, Hertfordshire in mid-2017.

Both operations benefit from CAVAVIN’s large range of French and world class wines and spirits.

The UK is a priority for CAVAVIN because, thanks to its key success factors and its two successful UK franchisees, the company knows there is room for a differentiating positioning on a market oriented on good value for money and wide ranges.

Wide range of suppliers and products

The company and all CAVAVIN wine shop franchisees share a strong spirit of entrepreneurship and have common strengths, thanks to CAVAVIN’s franchise logistic and purchasing power.

CAVAVIN has long-term partnerships with 150 international vineyards. It offers 2,000 authentic and exclusive products at competitive prices because for many suppliers the company is their main distributor, representing more than 50 per cent of their own sales.

As a result, franchisees can offer more affordable wines and spirits than their competitors do.

Each cavavin wine shop is singular

Depending on each shop’s location and customer portfolio, CAVAVIN and its franchisees fine-tune a selection of 600 products out of the 2,000 wines and spirits available on the company’s logistic platform.

Each wine shop offers a selection of wines adapted to its customers and each franchisee can buy out of the logistic platform up to 30 per cent of additional beverage products (wines, spirits or beers).

Each entrepreneur or investor can use the CAVAVIN franchise to develop the business model they want, whether that’s owner operator, a multi-channel company or multiple units.

Differentiated merchandising and efficient customer experience

More than a wine shop, CAVAVIN has created a modern, refined and enhanced universe for the wines and spirits it presents.

The wide range available is underlined by a warm and friendly atmosphere. The customer experience is reinforced thanks to the wideness of the ranges at affordable prices. Each customer can understand quickly the way the wines and spirits are presented per region and per price positioning.

The Wine Sign is a customer oriented experience used to recruit new customers and gain their loyalty. It can be sold through a wine tasting animation or a Do It Yourself animation if the customer buys a box.

Once each participant has answered questions on six wines and six questions on their cooking preferences, an algorithm defines their own ‘wine sign’ and sends them a personalised wine cellar book, which details the CAVAVIN wines that will suit their tastes.

Based on this knowledge of each customer, CAVAVIN franchisees can send them information on products suitable for their tastes, including newsletters, invitations for tastings and special offers.

Transferring its know-how to franchisees

From the feasibility study to the opening of the store, CAVAVIN assists franchisees with the validation of the location, technical and commercial assistance, transmission of know-how and assistance with launching the store.

The company also helps franchisees design and fit-out their wine stores, specifying their decoration.

Franchisee training lasts for three weeks:

One week devoted to products with all wine areas training, including food pairings and high end wine.

One week in an established CAVAVIN wine shop, where training on wine advice and sales takes place.
One week of tools training at CAVAVIN headquarters in La Baule, France.

Express your spirit of entrepreneurship

CAVAVIN offers prospective franchisees three different franchise options:

You can run your business as an owner operator, which is what CAVAVIN’s Hertford franchisee does. Year three average turnover target is around £300,000.

A multi-channel approach, which is what CAVAVIN’s Sheffield franchisee took. This business employs 28 people, deals with hotels and restaurants and trades on the internet, in addition to its bricks and mortar wine shop business. 2018 turnover was £6 million.

A multi unit business, with supervisors monitoring each unit’s results.

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