Walter Gilbey - Growth and Distribution

Growth and Distribution

The Cape wines proved popular, and within three years the brothers had 20,000 customers on their books. The creation of the off-licence system by William Ewart Gladstone, then Chancellor of the Exchequer, in 1860, followed by the large reduction in the duty on French wines effected by the commercial treaty between England and France in 1861, revolutionized their trade and laid the foundation of their fortunes.

Three provincial grocers, who had been granted the new off-licence, applied to be appointed the Gilbeys agents in their respective districts, and many similar applications followed. These were granted, and before very long a leading local grocer was acting as the firm's agents in every district in England.

The grocer who dealt in the Gilbeys wines and spirits was not allowed to sell those of any other firm, and the Gilbeys in return handed over to him all their existing customers in his district. This arrangement was of mutual advantage, and the Gilbeys business increased so rapidly that, in 1864, Henry Gilbey abandoned his own undertaking to join his brothers. In 1867 the three brothers secured the old Pantheon theatre and concert hall in Oxford Street for their headquarters. In 1875 the firm purchased a large claret-producing estate in Medoc, on the banks of the Gironde, and became also the proprietors of two large whisky-distilleries in Scotland. In 1893 the business was converted, for family reasons, into a private limited liability company, of which Walter Gilbey, who in the same year was created a baronet, was chairman.