John Townend (Management Sciences 1985-89) is the fourth generation of his family to run the House of Townend (HOT Wines). The company, based in the East Riding of Yorkshire, is now over 100 years old. John talked to Warwick enetwork about his working life as a wine merchant.
Describe what it was like growing up with the expectation that you would join the family business?
I have to say I never really gave it much thought. It was a fait accompli.
What was the company like when you started work there after graduating, and what was your role?
Back in the 1980s the business was very different than it is today. Essentially the core business was off licenses – 13 branches in all. In 1985 my father had sold half the estate. It was a big error- he should have sold the lot! He was concerned that there wouldn't be a business for me to come into, but the reality was that the off licence sector was in terminal decline with the supermarkets grabbing a large percentage of the market. We also sold large amounts of sherry to the supermarket sector and owned the Keelings Advocaat brand. Unfortunately both of these product categories were also on a steep down curve.
How has the company changed in the last 20 years?
The fundamental key to a family business continuing through the generations is its ability to adapt to meet the demands of an ever- changing market.
Our main change has been our route to market/customer base. The majority of our business back in the 1980s was to the individual consumer, whereas nowadays it is to the hotel, restaurant and pub sector along with a reasonable private client base through mail order and our web-site www.hotwines.co.uk. We operate out of two depots, one in Hull and one in Warrington, with a 12 strong sales team. We operate at the mid to top end of the market where quality of both product and service are key. From the telesales and wine list design department through to the delivery team, we try and instil a culture of quality service and eye for detail. We are, after all, a family business and try to give a more personal service than our national competitors. Customer loyalty is hard earned.
Can you describe your typical working day?
Fortunately no day is the same. There are the mundane 'desk job' days that are an obligatory part of running a business. Apart from that my time is split between purchasing and sales. I do all the wine buying by myself and so there is quite a lot of travelling to the various wine regions of the world, selecting new wines, agreeing exclusivity agreements, pricing etc. Time is also spent in the field with our sales team developing sales with the hotel and restaurant trade in the North and Midlands.
What are the most challenging parts of your job?
Challenging or most unenjoyable? Ultimately the biggest challenge is in the wine buying but it is also the most interesting. There is a greater sense of achievement in putting together the blends for our everyday drinking wines than there is from buying fine Burgundy, although the latter is certainly more enjoyable. You have to make decisions on behalf of your customers as opposed to simply your own personal preference, although it is inevitable that your own palate will affect the style of wine that you sell. The main thing is to think commercially and be fully aware of market trends.
Essential to any successful business is the mindset of your colleagues. They need to be positive and motivated, so a lot of time can be spent both picking people up and, of course, keeping feet on the ground. Everyone prefers to be on a winning team. Good people want to know exactly where the business is going so you must keep them fully aware of your plans. After all, it is them that will get you there.
Where do you hope the company will be in 10 years time?
After spending nearly 20 years developing our trade with the hotel and restaurant sector I would like to give the company a better balance with a greater emphasis on the private wine buyer, through our mail order and website. At the moment we are more a wine wholesaler than the archetypal independent wine merchant that I would like us to be, although we are perfectly well equipped to be the latter.
How did your degree at Warwick help your work?
Difficult one. I studied Management Sciences which is in effect a mathematical-based Business Studies course. In the three years that I studied I didn't have one lecture or seminar on sales. I am very fortunate that my sales director and a lot of my sales team were trained in sales by blue chip companies. Sales training is an area that needs more attention. Come face to face to face with a professional buyer and you could be tied in knots without the relevant professional sales training.
Where I think it probably did help is in the decision-making process. It is all too easy to make a decision based on gut instinct without fully assessing all the variables. Quick decision-making is important but it has to be made with all the facts at hand and having thought through the full effects of your decision.
I don't know if it was the course or simply three years at university mixing with people from different backgrounds, but learning how to interact and deal with people with very different characters is something that I would attribute to my time at university.
What's your favourite memory of your university years?
Meeting my wife!
Do you have any advice for new graduates, particularly those who may also work in a family business?
If you are going into your family's business it is vital to go and get experience elsewhere first. For certain reasons I returned to the business immediately after university. Go and have some freedom first. Only return to the business when you feel you are ready. Hopefully one of my daughters will want to carry the business on. If they do, I would make it a pre-requisite that they get some experience elsewhere first.
One final thing – don't mess around. You'll turn round and you will be 40.
If you have an interesting story about your working life, email your news for the next issue of Warwick e-network by contacting e-network@warwick.ac.uk
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