5 Things You Didn’t Know About Cavavin

The UK is a nation of wine drinkers. Enjoying the fermented grape beverage isn’t just for connoisseurs, in fact research has shown that it is the favoured alcoholic drink for 60 percent of UK adults (Wine and Spirit Trade Association). And so, the UK wine industry is very important to the economy and is worth approximately £17.3 billion in economic activity.

Cavavin

Cavavin is a family-owned wine merchant specialising in French wine. It was established in 1985 by Michel Bourel, and there are now over 150 franchisees operating in France. The global brand also operates in the UK, Luxembourg, Belgium, Switzerland, Guyana, Ivory Coast, Congo and Reunion Island. Cavavin offers a range of 2,000 wines and spirits from 150 international suppliers.

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Five Things you Didn’t Know About Cavavin

To learn more about this exciting franchise, let’s take a look below at five things you didn’t know about it.

1. Cavavin’s history

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The brand was born in 1985 when Michel Bourel federated independent wine merchants. He decided to adopt the franchise model in 1996 and a year later, a new platform in Guérande opened and the new commercial strategy was launched. By 2005, Cavavin had expanded to open its 100th shop, demonstrating how successful franchising proved for the company. Between 2007 and 2011, the brand modernised its product offering and store furniture. Then, in 2015, Cavavin celebrated its 30th anniversary, which evidences the wealth of franchising and industry-related experience it has under its belt. A year later, the founder’s son-in-law, Oliver Mermuys, joined Cavavin as Director of Operations and International to maintain the brand’s family element. Mermuys is now Managing Director. Finally, in 2018, Cavavin introduced a new logistic platform and headquarters to coincide with its development plans and to provide the best quality of service to its franchisees.

2. Cavavin’s scale

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Just to reiterate how influential Cavavin is in the wine industry, let’s take a look at some statistics. More than 1,500 bottles are sold each hour, 3.5 million bottles are transported every year and more than 100,000 customers have experienced the brand’s iconic Wine Sign. The Wine Sign is a wine tasting experience that helps entice customers and expand the brand’s reach. It can be sold through a wine tasting animation or Do It Yourself animation. After a customer has their own wine sign, they are provided with a personalised wine cellar book outlining which CAVAVIN wines will match their unique tastes. It is a successful marketing strategy to gain a community of loyal customers.

We’ve already established that Cavavin has a presence in eight countries across three continents. At the moment, there are shops in Hertford and Sheffield in the UK, but Cavavin is keen to increase its nationwide prevalence.

3. Cavavin’s logistics

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Made possible by its 150 suppliers, Cavavin offers 2,000 authentic products at a reasonable price. The logistics organisation helps maintain exceptional service and is adapted to franchisees’ needs and the seasonality of the market. The logistics team is made up of seven people at the franchisees’ disposal to encourage a responsive delivery service even in peak periods. A good service level is also maintained, thanks to Cavavin’s buying power.

4. Cavavin’s offering

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Cavavin provides franchisees with the opportunity to supply their customers with a vast range of products covering the whole price spectrum and to suit all individual tastes. Therefore, the offering encompasses more affordable items and more premium products like fine wines.

Based on the location of the shop and the customer base, Cavavin carefully selects 600 out of the 2,000 stock items to sell. But it is also willing to diversify its offering based on local demand. On top of its standard offering of French and world-class wines, the brand is also open to customising its product range based on what the customers want. And so, a number of non-French wines can be offered too. Franchisees can buy out of the logistic platform for up to 30 percent of additional beverages, whether that be wines, spirits or beers.

5. Cavavin’s support for franchisees

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Cavavin helps with running your store as efficiently as possible, choosing the location, providing technical assistance and helping with launch day. There is also support with the store design and optimising the furniture and wine display.

The three-week training programme is split into three week-long sections. The first week is dedicated to the products, including all the necessary wine expertise. This comprises food pairings and high-end wine exploitation visits. The second week involves being immersed into the wine shop operation, including training on giving wine advice and sales know-how. The final week involves tools training at the headquarters in La Baule.

What options are there?

If you are interested in this opportunity, there are three routes that you can take. You could choose to become an owner-operator. To demonstrate how profitable your business could be, consider the Hereford branch, which has a year three average turnover objective at £300,000. Or, another option is to adopt the multi-channel approach. The Sheffield franchisee employs 28 people and deals with hotels and restaurants and e-commerce, as well as the classic wine shop business. Last year, the franchise’s turnover was £6 million. The final option is to get involved in a multi-unit approach.

Investment Information

If you are interested in starting your own Cavavin franchise, you will need to make a minimum investment of £30,000 and a total investment of £70,000. The franchise fees are £16,500 and the royalty fee is set at 2.5 percent of gross sales and paid quarterly.

The six steps to become a franchisee involve the enquiry, application, web exchange, project validation, project implementation and, finally, shop opening. To find out more, you can check out its client page here or head to its website. And you can check out some more wine franchise opportunities in our franchise directory – one of the most exciting opportunities is Veeno.