Table of Contents
Issues in the Market
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- Key themes in the report
- Definition
- Market size rationale
- Abbreviations
Insights and Opportunities
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- Partnering restaurants and off-licenses
- The packaging problem
- Catering to the mature wine drinker
Market in Brief
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- Financial strain limiting wine market growth
- In-home trend boosts off-trade wine sales
- Downside of the in-home trend
- Alcohol consumption falls as consumers get healthier
- Red accounts for more sales, but white is preferred
- Still wines dominate market
- Ethical and environmental concerns important to Irish consumers
Fast Forward Trends
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- Trend 1: Bling Bling
- What’s it about?
- What we’ve seen
- What next?
- Trend 2: No Middleman
- What’s it about?
- What we’ve seen
- What next?
Internal Market Environment
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- Key points
- Irish consumers find themselves financially strained
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- Figure 1: Areas where consumers have cut back on spending in the last 12 months, RoI and NI, July 2010
- Is wine recession-proof?
- Alcohol consumption rates decline between 2009 and 2010
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- Figure 2: Alcohol consumption in the last 12 months, NI and RoI, 2005-10
- The impact of consumers becoming more health focused
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- Figure 3: Agreement with health-related statements, NI and RoI, 2010
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- Figure 4: Agreement with selected statements relating to the negative effects of alcohol, by gender, NI and RoI, April 2010
- Wine and health: Separating myth from fact
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- Figure 5: Health-related claims made about wine, 2011
- Smaller bottles and measures could help promote healthier drinking habits
- Cork vs. Screwtop
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- Figure 6: Types of enclosure preferred by consumers, by type of wine, 2011
- Environmental issues and wine
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- Figure 7: Agreement with statements relating to the environment, NI and RoI, 2010
- The question of plastic
- Irish consumers want a fair deal for wine workers
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- Figure 8: Percentage of consumers that feel strongly about selected green/ethical issues, NI & RoI, August 2009
- Ireland and UK have high levels of excise on wine
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- Figure 9: EU excise rates and VAT on wine, 2011
- Global wine prices get higher
- Natural disasters push wine prices up
- Minimum pricing still a looming threat
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- Figure 10: Minimum alcohol pricing rates, England and Wales, 2011
- NI government launch minimum pricing consultation
- Foodservice industry key to on-trade wine sales
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- Figure 11: Agreement with the statement “I enjoy splashing out on a meal in a restaurant”, NI and RoI, 2010
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- Figure 12: Foodservice value of purchases (VOP) according to sector, all-Ireland, 2004-09
- Hotels an ideal channel for high value wine sales
Broader Market Environment
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- Key points
- 2010 sees economic stress ease
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- Figure 13: Economic outlook, NI and RoI, 2008-10
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- Figure 14: Consumer Sentiment/Confidence Index, January 2008-11
- What this means for wine
- Unemployment rises in 2010
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- Figure 15: Unemployment rate, NI and RoI, July 2007-September 2010
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- Figure 16: Consumers who have drunk bottled wine in the last 12 months, by working status, NI and RoI, 2010
- Job losses within the alcohol industry
- Lack of jobs leads to brain drain
- Mature consumers drink more wine
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- Figure 17: Consumers who have drunk bottled wine in the last 12 months, by age, NI and RoI, 2010
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- Figure 18: Agreement with the statement “my lifestyle has not been affected by the recession”, NI & RoI, April 2010
- Wine and the gender divide
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- Figure 19: Population projections, NI & RoI, by gender, 2006-20
- Figure 20: Consumers who have drunk bottled wine in the last 12 months, by gender, NI and RoI, 2010
Strengths and Weaknesses
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- Strengths
- Weaknesses
Competitive Context
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- Key points
- Beer the main competition to wine
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- Figure 21: Beer sales, by value and volume, on- and off-trade split, all-Ireland, 2008 and 2010
- Spirits present a strong brand image
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- Figure 22: Spirits sales, by value and volume, on- and off-trade split, all-Ireland, 2008 and 2010
- Cider suffers in recession
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- Figure 23: Cider sales, by value and volume, on- and off-trade split, all-Ireland, 2008 and 2010
- The FAB fad
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- Figure 24: FAB sales, by value and volume, on- and off-trade split, all-Ireland, 2008 and 2010
- The threat of own-brand wine
- Improving perceptions of own-label wine
Market Value and Forecast
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- Key points
- All-Ireland wine sales decline between 2009 and 2010
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- Figure 25: Wine, by value and volume, on- and off-trade split, all-Ireland, 2005-15
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- Figure 26: Wine, by indexed value, on- and off-trade split, all-Ireland, 2005-15
- NI off-trade wine sales boosted by cross-border shopping trend
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- Figure 27: Wine, by value and volume, on- and off-trade split, NI, 2005-15
- RoI wine segment normalises after shaky 2009
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- Figure 28: Wine, by value and volume, on- and off-trade split, RoI, 2005-15
- Maintaining brand strength by added value
Market Segmentation
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- Key points
- Table wine overwhelming the most bought type of wine
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- Figure 29: Wine sales, by type of wine, all-Ireland, 2010
- Red more popular than white, but only just
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- Figure 30: Wine sales, by kind of wine, all-Ireland, 2006 and 2010
- Room for rosé?
- Australian wines preferred over Chilean and French varieties
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- Figure 31: Irish wine sales, by country of origin, 2009
Who’s Innovating?
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- Key points
- NPD launches taper off in 2010
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- Figure 32: New product launches in the wine category, UK and Ireland, 2005-11
- New product launches the most common type of NPD
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- Figure 33: New product launches in the UK and Ireland, by launch type, 2005-11*
- Majority of wine launches to not specify claims
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- Figure 34: New product launches in the UK and Ireland, by product claims, 2005-11*
- Wine suppliers are not embracing alternative packaging types
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- Figure 35: New product launches in the UK and Ireland, by packaging used, 2005-11*
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- Figure 36: New product launches in the UK and Ireland, by packaging material used, 2005-11*
- Irish wine drinkers look to taste, price tag and region for indications of premium
- Ethical wines see increased development
- Environmentally friendly
- Potential new avenue for promoting wine brands
Companies and Products
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- Key points
- Barry & Fitzwilliam Ltd
- Diageo
- Pernod Ricard (Irish Distillers and Dillon Bass)
- Dillon Bass
- United Wine Merchants
- Direct Wine Shipments (DWS)
- O’Connor Wines
- Comans
- Online wine retailers
- Red Nose Wine
- WineWeb.ie
- James Nicholson Wine
- SimplyWines.ie
- CuriousWines.ie
- Vendemia Organic Wines (OrganicWinesIreland.com)
Channels to Market
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- Key points
- Both NI and RoI on-trade channels take a pounding
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- Figure 37: Number of on-trade premises with alcohol licences, NI, 2005-09
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- Figure 38: Number of on-trade premises with alcohol licences, RoI, 2005-10
- Restaurant closures affect wine sales more than any other type of alcohol
- More hotel closures imminent
- Off-trade establishments increase in both NI and RoI
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- Figure 39: Number of off-trade premises with alcohol licences, NI and RoI, 2005-10
- Online wine sales
Consumer Wine Preferences
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- Key points
- Wine consumption increases in RoI, but falls in NI
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- Figure 40: Bottled wine drunk in the last 12 months, NI and RoI, 2005-10
- Women more likely to be wine drinkers than men
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- Figure 41: Bottled wine drunk in the last 12 months, by gender and age, NI and RoI, 2010
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- Figure 42: Agreement with selected health statements, by gender, NI and RoI, 2010
- Majority of Irish wine drinkers are classed as light users
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- Figure 43: Frequency of bottled wine usage, NI and RoI, 2010
- Is a lack of strong branding limiting wine’s potential?
- In-home frequency vs. out of home frequency
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- Figure 44: Frequency of bottled wine usage, in-home vs. out of home, NI and RoI, 2010
- Dinner parties a boon to wine drinking at home
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- Figure 45: In-home drinking occasions for wine, NI and RoI, 2010
- Out-of-home drinking occasions for wine
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- Figure 46: Out-of-home drinking occasions for wine, NI and RoI, 2010
- Using new technology to help boost wine sales in the on-trade
- White wine is drank more by Irish consumers than red
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- Figure 47: Types of bottled wine drunk, NI and RoI, 2010
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- Figure 48: Types of bottled wine drunk, NI and RoI, 2007-10
- Men prefer red wine, women prefer white
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- Figure 49: Red vs. white bottled wine, by gender, NI and RoI, 2010
- Australian wines preferred by both NI and RoI wine drinkers
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- Figure 50: Wine bought by consumers, by country of origin, NI and RoI, 2010
- Irish consumers spend between €6 and €10.50 per bottle of wine
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- Figure 51: Amount normally spent on a bottle of wine, NI and RoI, 2010
- Consumers spend slightly more for special occasions
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- Figure 52: Amount spent on a bottle of wine for special occasions, NI and RoI, 2010
Consumer Attitudes Towards Alcohol
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- Key points
- A quarter of NI and a third of RoI consumers will pay more for quality wine
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- Figure 53: Agreement with selected statements relating to drinking, NI and RoI, 2010
- In-home drinking blooms
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- Figure 54: Agreement with the statement “Most of my drinking is done at home “, NI and RoI, 2005-10
- In-home trend good for wine sales
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- Figure 55: Types of alcohol bought for home consumption, NI and RoI, 2010
- Consumer perceptions of in-home drinking
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- Figure 56: Attitudes towards alcohol when purchasing alcohol from the supermarket/off-licence to drink at home, NI and RoI, April 2010
- Strong sentiment for the pub
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- Figure 57: Agreement with the statement “I really enjoy a night out at the pub “, NI and RoI, 2005-10
- Paying for quality wine
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- Figure 58: Agreement with the statement “I am prepared to pay more for good quality wine “, NI and RoI, 2005-10
- Who is prepared to pay more for quality wines?
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- Figure 59: Agreement with the statement “I am prepared to pay more for good quality wine “, by gender, age and social class, NI and RoI, 2005-10
Consumer Target Groups
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- Key points
- NI target groups
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- Figure 60: NI consumer typologies, 2010
- Pub Enthusiasts
- Characteristics
- Who are Pub Enthusiasts?
- Understanding Pub Enthusiasts
- In-home Drinkers
- Characteristics
- Who are In-home Drinkers?
- Understanding In-home Drinkers
- Connoisseurs
- Characteristics
- Who are Connoisseurs?
- Understanding Connoisseurs
- RoI target groups
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- Figure 61: RoI consumer typologies, 2010
- Irresponsible Drinkers
- Characteristics
- Who are Irresponsible Drinkers?
- Understanding Irresponsible Drinkers
- In-home Drinkers
- Characteristics
- Who are In-home Drinkers?
- Understanding In-home Drinkers
- Quality Wine Seekers
- Characteristics
- Who are Quality Wine Seekers?
- Understanding Quality Wine Seekers
Appendix
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- Figure 62: Population projections, NI, by gender, 2006-20
- Figure 63: Population projections, RoI, by gender, 2006-20
- Figure 64: Population projections, by age, NI, 2000-20
- Figure 65: Population projections, by age, RoI, 2000-20
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- Figure 66: Pound to Euro exchange rate used (annual average), 2004-13
- NI demographic tables – wine usage
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- Figure 67: In-home drinking occasions for wine, by all demographics, NI, 2010
- Figure 68: In-home drinking occasions for wine, by all demographics, NI, 2010
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- Figure 69: Out-of-home drinking occasions for wine, by all demographics, NI, 2010
- Figure 70: Bottled wine drunk in the last 12 months, by all demographics, NI, 2010
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- Figure 71: Frequency of usage of bottled wine, by all demographics, NI, 2010
- Figure 72: Frequency of usage of bottled wine – in-home, by all demographics, NI, 2010
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- Figure 73: Frequency of usage of bottled wine – out-of-home, by all demographics, NI, 2010
- Figure 74: Type of bottled wine drunk, by all demographics, NI, 2010
- RoI demographic tables – wine usage
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- Figure 75: In-home drinking occasions for wine, by all demographics, RoI, 2010
- Figure 76: In-home drinking occasions for wine, by all demographics, RoI, 2010
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- Figure 77: Out-of-home drinking occasions for wine, by all demographics, RoI, 2010
- Figure 78: Out-of-home drinking occasions for wine, by all demographics, RoI, 2010
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- Figure 79: Bottled wine drunk in the last 12 months, by all demographics, RoI, 2010
- Figure 80: Frequency of usage of bottled wine, by all demographics, RoI, 2010
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- Figure 81: Frequency of usage of bottled wine in home, by all demographics, RoI, 2010
- Figure 82: Frequency of usage of bottled wine elsewhere, by all demographics, RoI, 2010
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- Figure 83: Types of bottled wine drunk, by all demographics, RoI, 2010
- RoI typology data
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- Figure 84: Agreement with drink statements, by consumer typology, RoI, 2010
- Figure 85: Frequency of bottled wine usage, by consumer typology, RoI, 2010
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- Figure 86: Types of bottled wine drunk, by consumer typology, RoI, 2010
- Figure 87: Kind of wine drunk, by consumer typology, RoI, 2010
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- Figure 88: Consumer typologies, by demographics, RoI, 2010
- NI typology data
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- Figure 89: Agreement with drink statements, by consumer typology, NI, 2010
- Figure 90: Frequency of wine usage, by consumer typology, RoI, 2010
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- Figure 91: Frequency of bottled wine usage, by consumer typology, RoI, 2010
- Figure 92: Type of bottled wine drunk, by consumer typology, RoI, 2010
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- Figure 93: Kind of bottled wine drunk, by consumer typology, NI, 2010
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