Table of Contents
Issues in the Market
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- Definition
Future Opportunities
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- De-mystifying wine
- Moving towards premiumisation
- Being the acceptable face of drinking
Market in Brief
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- 2008, the year that the wine market declined…
- Long-term trends undermining the market
- Impact of the recession
- Rosé continues to shine
- Consumer confusion reigns, especially amongst the young
- What the future holds
Internal Market Environment
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- Key points
- Discounting in multiples
- British drinking culture in slow decline
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- Figure 1: Trends in alcohol consumption, 2004-08
- A greater association with binge drinking
- Shift towards home drinking
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- Figure 2: Trends in alcohol consumption in and out of home, 2004-08
- Calorie counts in wine’s favour
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- Figure 3: Calories contained in typical serves of different alcohol types, 2009
- Drive towards healthier living
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- Figure 4: Trends in attitudes towards health, 2004-08
- Contradictory health messages
- Making home advantage count
Broader Market Environment
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- Key points
- The impact of the recession
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- Figure 5: Trends in PDI and consumer expenditure, 2004-14
- Spiralling wine duty
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- Figure 6: Trends in excise duty rates for wine, April 2000-March 2009
- A strong Euro
- The advantage of an ageing population
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- Figure 7: Structure of the UK 18+ population, by age, 2004-14
- The opportunity of educating 25-34s
- Benefiting from a rise in ABC1s
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- Figure 8: Changes in social grade amongst the UK 18+ population, 2004-09 and 2009-14
- Summer benefits
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- Figure 9: Average sunshine hours and wine volume sales in UK, 2004-08
Competitive Context
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- Key points
- Wine growing its share of the alcohol market
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- Figure 10: UK value sales of alcoholic drinks, by type, 1998-2008
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- Figure 11: UK value sales of alcoholic drinks, % by type, 1998-2008
- Wine benefits from a broad appeal
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- Figure 12: Index of wine penetration, by gender, age and socio-economic group versus other types of alcohol, 2008*
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Alternative packaging and presentation
- Packaging for the environment
- The cork versus screw-top debate
- Low calorie wines
- Do it yourself
Market Size and Forecast
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- Key points
- The end of an era
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- Figure 13: UK volume and value sales forecast of wine, 2004-14
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- Figure 14: UK volume and value sales of wine, on- and off-trade, 2004-14
- On and off-trade split
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- Figure 15: UK value sales of wine in the on-trade, 2004-14
- Figure 16: UK value sales of wine in the off-trade, 2004-14
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- Figure 17: UK volume and value sales of wine, by type, on- and off-trade, 2004-09
Segment Performance
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- Key points
- Red wine
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- Figure 18: UK volume and value sales of red wine, on- and off-trade, 2004-14
- White wine
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- Figure 19: UK volume and value sales of white wine, on- and off-trade, 2004-14
- Rosé
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- Figure 20: UK volume and value sales of rosé wine, on- and off-trade, 2004-14
- Rosé legislation
Market Share
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- Key points
- Trouble down under?
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- Figure 21: Top 10 wine producing countries in the UK off-trade, 2008
- Brand review
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- Figure 22: Brands’ value shares in UK retail (off-trade) sales of wine, 2008
- Own-label
Companies and Products
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- Key points
- Brown-Forman
- Constellation Europe
- Diageo
- E&J Gallo
- Ehrmanns Wines
- First Drinks Brands
- Foster’s
- Halewood International
- John E Fells
- Negociants UK
- Pernod Ricard
- PLB Wines
- Raisin Social
- The Company of Wine People
- Waverley TBS
Brand Communication and Promotion
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- Key points
- Market down despite highest adspend
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- Figure 23: Main monitored media advertising expenditure on wine, 2004-08
- Figure 24: Main monitored media advertising expenditure on wine, by media type, 2006-08
- Constellation dominating advertising activity
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- Figure 25: Main monitored media advertising expenditure on wine, top ten brands, 2006-08
Channels to Market
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- Key points
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- Figure 26: UK retail value sales of wine, by on- and off-trade, 2004-09
- Off-trade
- Specialists versus the grocers
- Off-licences in decline
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- Figure 27: Numbers of supermarkets and off-licences, 2003-07
- Leading players
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- Figure 28: UK retail (off-trade) volume sales of wine, estimated % share by outlet, 2005-09
- Figure 29: Leading wine retailers, 2009
- On-trade
- A diminishing pool
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- Figure 30: Number of licensed premises in England & Wales, 1997-2006
The Consumer – Usage
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- Key point
- Attracting people earlier the key to growth
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- Figure 31: Volume of wine drinking, by gender, age and socio-economic group, 2008
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- Figure 32: Trends for volume of wine drinking, by age group, 2004-08
Consumer Attitudes to Wine
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- Key points
- Amidst confusion, there is no substitute for personal experience
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- Figure 33: Top influencers of wine purchases amongst wine drinkers, February 2009
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- Figure 34: Attitudes towards wine, February 2009
- Are promotions de-valuing consumer perceptions of wine?
- Branding affective at targeting young
- Food for thought
- Offers limit effects of the recession
- Brave New World
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- Figure 35: Trends for consumption of Old World wine versus New World wine, 2004-08
- Mixed messages about health
- Only rosé is growing its penetration
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- Figure 36: Trends for type of wine consumed, 2006-08
- Rosé offers a threat to white wine
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- Figure 37: Penetration of wine (drunk in last three months), by type, by gender, age and socio-economic group, February 2009
- Unlike red wine and rosé, white lacks differentiation
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- Figure 38: Drinkers of wine by type, by factors influencing wine purchase, February 2009
Targeting Opportunities
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- Key points
- Identifying targets
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- Figure 39: Target groups for wine, February 2009
- Figure 40: Target groups for wine, by factors influencing wine purchase, February 2009
- Connoisseurs (17% of sample)
- Who are they?
- Next steps
- Loyalists (33% of sample)
- Who are they?
- Next steps
- Country bias (21% of sample)
- Who are they?
- Next steps
- Uninitiated (29% of sample)
- Who are they?
- Next steps
Appendix
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- Consumer research
- ACORN
- Advertising data
- Abbreviations
Appendix – Internal Market Environment
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- Figure 41: Trends in % of wine drinkers, drinking in-home and elsewhere, 2004-08
- Figure 42: Trends for where adults consume wine, 2007 and 2008
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Appendix – Brand Communication and Promotion
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- Figure 43: Yearly expenditure for wine market, by media type, 2006-08
- Figure 44: Spend for top 10 wine advertisers, 2006-08
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Appendix – The Consumer – Usage
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- Figure 45: Wine drinking in last three months, by demographics, February 2009
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Appendix – Consumer Attitudes to Wine
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- Figure 46: Top three factors influencing purchases of wine, by demographics, February 2009
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- Figure 47: Factors influencing buying wine, by demographics, February 2009 (continued)
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- Figure 48: Statements on wine, by demographics, February 2009
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- Figure 49: Statements on wine by demographics, February 2009 (continued)
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- Figure 50: Trends in consumption of wine in home and elsewhere, 2004-08
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- Figure 51: Trends in consumption of own-label versus branded wine, 2004-08
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- Figure 52: Trends for volume of wine drinking, 2004-08
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- Figure 53: Demographics of wine consumers versus other types of alcohol, 2008
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- Figure 54: Demographics of wine consumers versus other types of alcohol, 2008
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- Figure 55: How many types of wine people drink in the past three months, February 2009
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- Figure 56: Statements on buying wine, by which wine people drink, February 2009
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- Figure 57: General volume of wine drinking, by demographics, 2008
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Appendix – Targeting Opportunities
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- Figure 58: Target groups for wine, by demographics, February 2009
- Figure 59: Attitudinal groups by statements about wine, February 2009
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- Figure 60: Attitudinal groups by what types of alcohol they have drunk in the past three months, February 2009
- Figure 61: Attitudinal groups and whether they have changed the amount they have drunk over the past two years
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