Tesco Is Weighing a Rare Big Acquisition, and It Involves a Wine Chain
Keypoints:
- Tesco is reportedly among the bidders for Majestic Wine Group
- Owner Fortress Investment Group began a formal sale process a few weeks ago
- Majestic operates more than 200 stores across the UK and Jersey
- Fortress bought Majestic for £95 million in 2019
- Tesco's last comparable deal was the £3.7 billion purchase of Booker in 2018
Tesco is among the bidders weighing an offer for Majestic Wine Group, Sky News reported on Saturday, 3 October. Majestic is Britain's largest specialist wine retailer. Its owner, the American private equity firm Fortress Investment Group, started a formal sale process several weeks ago. Tesco, Majestic and Fortress have declined to comment publicly.
Majestic has changed a lot since its first wine warehouse opened in north London in 1980. It now runs more than 200 stores across the UK and Jersey and reported sales of £386 million in the year to 31 March 2025. In 2024 it bought the Vagabond wine bar business out of administration. Last year it added the drinks distributor Enotria, which supplies pubs, restaurants and hotels.
That commercial arm may explain Tesco's interest. One analyst told Sky News the grocer could pursue a deal through Booker, its wholesale division. Booker supplies independent retailers and hospitality businesses across the UK. A Majestic purchase would also push Tesco much deeper into wine and spirits.
The move would be unusual for Tesco. The grocer holds about 28% of the UK grocery market. Under chief executive Ken Murphy, it has rarely explored corporate acquisitions. Its last deal on a comparable scale was the £3.7 billion Booker purchase in 2018. Before that, Tesco spent years selling businesses rather than buying them.
Fortress has a clear return story to tell. It paid £95 million for Majestic in 2019 and separated it from its online sister business, Naked Wines. That company remains listed in London with a market value below £45 million. Fortress hired Rothschild bankers earlier this year to explore options. Analysts say a sale could raise hundreds of millions of pounds, though the price remains unclear.
Other bidders are involved, and their identities have not been disclosed. No deal value or timetable has been announced. Tesco's interest is also based on sources speaking to Sky News rather than a confirmed offer.
Would Majestic's wine warehouses keep their own identity inside a grocery giant, or fold into its wider network?