Greencroft Bottling, a County Durham-based wine bottling firm, has reported a significant increase in operating profits despite what it describes as 'havoc' caused by disruptions in the Suez Canal. The company, part of the Lanchester Group, saw operating profits rise from £1.56 million to £2.78 million in the year ending June 2025, while turnover increased from £62.5 million to £86 million.
Disruption Impact
The temporary closure of the Suez Canal in 2024, due to attacks by Houthi Rebels on shipping in the Red Sea, led to a drastic reduction in traffic through the key waterway. Greencroft Bottling said this caused 'havoc', resulting in millions of pounds in penalties and additional costs as large volumes of wine arrived at North East ports over a two-week period.
New Facilities and Sustainability
Despite these challenges, the company has completed a £20 million new production facility, Greencroft 2, at its Annfield Plain base. The facility, powered by wind and solar energy, has the potential to handle 400 million litres annually, equivalent to 28% of all wine sold in the UK. A new semi-automated warehouse has also been added. Managing Director Mark Satchwell said the new filling line, capable of 18,000 bottles per hour, has been integrated successfully, and automation in the tank facility has increased efficiency by over 40%.
Industry Challenges
In the accounts, Satchwell criticized the new Labour Government for a 'massive' increase in wine duty, which has risen by nearly 40% over the last 15 months. He also condemned the Extended Producer Responsibility (EPR) as a 'ridiculous tax' that is harming the liquor and hospitality industries, noting that at least one pub a day is closing, damaging local communities.
Future Outlook
Despite these headwinds, Greencroft Bottling expects its best year ever, with the new facilities and bulk wine shipping benefits set to drive growth. The company aims to become the most efficient wine bottling and storage operation in the UK and Europe.
