Vagabond Wines is set to create the UK’s largest urban winery at Canada Water, a significant step following its rescue acquisition by specialist retailer Majestic Wine. Majestic bought Vagabond out of administration last year in a £6.5 million deal and has since committed to a major investment aimed at quadrupling Vagabond’s English wine production. The new winery, located in the recently completed Dock Shed, will occupy a 6,000 square foot space featuring a 100-tonne working winery, a Vagabond bar with the brand’s signature self-pour wine machines, and several event and private hire areas. The facility is expected to produce up to 100,000 bottles annually.

Christobell Giles, Vagabond’s managing director, described the urban winery as “a cathedral to wine” that offers visitors a chance to engage closely with the winemaking process and the stories behind each bottle. “Wine shouldn’t live on a dusty shelf. It should be alive, expressive, and social – and that’s exactly what we’re building,” she told The Grocer.

Majestic Group’s CEO John Colley expressed enthusiasm for the project, highlighting it as a significant investment that underscores the potential they see in expanding Vagabond beyond London into major towns and cities across the UK. This expansion is a key part of Majestic’s broader strategy, which is not only about growing Vagabond’s estate—aiming to double its size within three years—but also about capturing a younger demographic and bolstering its customer base. Colley noted the project had been in development for several months and they planned to welcome the first visitors later this year.

Majestic’s acquisition of Vagabond came after the wine bar chain filed for administration, a move that arose from various headwinds, including legacy costs linked to the COVID-19 pandemic and the loss of a major venue due to airport security reconfiguration. The purchase saved nine of Vagabond’s twelve bars along with 171 jobs, excluding the underperforming Canary Wharf bar and two Gatwick Airport locations. The deal also strengthens Majestic’s business-to-business arm, Majestic Commercial, complementing its retail operations. Industry sources indicate this move reflects investor confidence in experiential retail and hospitality offerings, which Majestic’s owner, Fortress Investment Group, has supported.

Since the acquisition, Majestic has been keen to develop Vagabond’s experiential credentials, with initiatives including the launch of new bars slated for locations such as St Paul’s and Liverpool Street later in the year. Vagabond also appointed Christobell Giles as managing director to oversee this ambitious growth phase. Giles brings substantial hospitality experience from her previous roles with brands like Wagamama and Hilton Hotels and is spearheading new customer relationship management programmes and enhanced staff training through Wine & Spirit Education Trust (WSET) certifications.

The business has seen encouraging signs since the acquisition. After a difficult start to 2024, Vagabond posted strong sales growth at the end of the year, with like-for-like sales rising by 16.3% in the six weeks leading up to late December. Food sales increased by 26.2% over the same period, with the chain’s fondue proving especially popular, reportedly selling more than 1,000 servings a week during December. These metrics suggest that Majestic’s investment strategy is already yielding positive returns.

This urban winery project and the overall expansion of Vagabond represent a notable commitment to revitalising and modernising the wine bar experience in the UK, aligning with wider trends towards immersive, socially engaging hospitality formats. As Majestic continues to foster Vagabond’s growth, both companies are signalling ambitions not just to expand geographically but also to deepen customer engagement through experiential retail and education.

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Source: Noah Wire Services