United Kingdom: Value growth for wine in on and off trade

Dec, 27, 2010
La Journée Vinicole Edition- n° 243

UK: Argentina is the stand out performer in the on-trade (+50.9 percent value).
Another report issued recently by the Wine & Spirit Association, which compiles the latest sales data for the UK market, shows wine sales growing in overall value in pubs, clubs (+3..5 percent) and restaurants as well as in shops (+2.7 percent), despite a fall in volumes. Spirits sales in shops were strong with value growth (+6.6 percent) exceeding volume gains (+1.7 percent) but overall sales of spirits were down in the on-trade (-4.6 percent volume, -3.7 percent value). The figures are contained in the latest WSTA Quarterly Market Report, which draws on data from leading independent sources including Nielsen, CGA Strategy and IWSR with analysis by Tim Wilson, author of the Wilson Drinks Report. Wine emerges as the best performer in the on-trade in the 12 months to October 2nd with sales of rosé particularly strong (+4.2 percent value) and sales of white wine not far behind (+3.9 percent value).

The sales data also shows that the average price of a bottle of wine rose to £4.47. The strongest performers in the off-trade (figures for year to October 30) are RTDs (+10.8 percent value), Champagne (+9.4 percent value) and sparkling wine (+7.8 percent value). Encouragingly, strong value growth was posted in off trade sales of wine in several price categories: £4.01 to £5.00, +24.4 percent; £6.01 to £7.00, +28.3 percent; and £9.01 to £10.00, +23.7 percent. Argentina is the stand out performer in the on-trade (+50.9 percent value). Asked whether they will be buying wine or spirits as a gift this Christmas 48 percent of British adults polled say they will probably or definitely buy wine, 43 percent say spirits. Commenting on the latest sales figures WSTA chief executive Jeremy Beadles said that “it’s encouraging to see wine delivering value in pubs and restaurants as well as in the off-trade, despite the reduction in volumes. The breakdown shows rosé and white as the strongest performers in food-led pubs, whilst all wines are delivering value growth in hotels and restaurants. Let’s hope next month’s VAT increase does not turn customers away”.