Table of Contents
Executive Summary
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- The market
- Inflation drives category growth over 2014-19
- Further inflation plus declining volume sales expected for 2019-24
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- Figure 1: Total value sales of still, sparkling and fortified wine, 2014-24
- White wine off-trade sales lose momentum, while rosé sales decline
- Inflation rises faster in the on-trade in 2019
- Weather extremes of 2018-19 affect wine production in various countries
- A third of adults have limited their alcohol intake
- Companies and brands
- Mixed results for brands in the still wine category
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- Figure 2: Leading brands’ sales in the UK retail still wine market, by value, 2018/19*
- Freixenet and I Heart buck the negative trend in sparkling wine
- Further activity in low/non-alcoholic, canned and English wines
- Advertising spend on wine falls in 2018
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- Figure 3: Total above-the-line, online display and direct mail advertising expenditure on still, sparkling and fortified wine, 2015-19 (sorted by 2018)
- The consumer
- Seven in 10 adults drink wine
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- Figure 4: Usage frequency for wine, July 2019
- Different wine types have different demographics
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- Figure 5: Purchase of wine, by type, July 2019
- Consumers spend more on wine as a gift than for personal use
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- Figure 6: Spending on wine, by occasion, July 2019
- Vintage, specific origin and UK-sourced wines attract interest
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- Figure 7: Attributes seen as worth paying more for wine, July 2019
- Many wine drinkers are open to experimenting
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- Figure 8: Behaviours relating to wine, July 2019
- Over half of wine users/buyers are in favour of nutritional labelling
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- Figure 9: Behaviours relating to wine, July 2019
- What we think
Issues and Insights
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- Alcohol moderation trend presents a challenge and an opportunity
- The facts
- The implications
- Appeal to consumers’ openness to experimentation
- The facts
- The implications
- Offer further guidance in-store to secure sales and encourage trading up
- The facts
- The implications
The Market – What You Need to Know
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- Inflation drives category growth over 2014-19
- Further inflation plus declining volume sales expected for 2019-24
- White wine off-trade sales lose momentum, while rosé sales decline
- Inflation rises faster in the on-trade in 2019
- Weather extremes of 2018-19 affect wine production in various countries
- A third of adults have limited their alcohol intake
Market Size and Forecast
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- Inflation drives category growth over 2014-19
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- Figure 10: Total sales of still, sparkling and fortified wine, by value and volume, 2014-24
- Inflation to mask volume sales decline over 2019-24
- Ageing UK population to hinder volume sales growth
- Alcohol moderation trend to erode sales, though opportunities remain for premium and L/N/R alcohol variants
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- Figure 11: Total value sales of still, sparkling and fortified wine, 2014-24
- Forecast methodology
Market Segmentation
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- White wine continues to lead off-trade sales but loses momentum
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- Figure 12: Off-trade value and volume sales of still wine, by type, 2017-19
- English variants buck the negative trend in fortified wine
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- Figure 13: Retail value and volume sales of fortified wine, by type, 2017-19
Channels to Market
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- Off-trade dominates sales in the wine category
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- Figure 14: UK value and volume sales of wine in the on- and off-trade, by type, 2017-19
- Inflation runs faster in the on-trade in 2019…
- …while volume decline is steeper
Market Drivers
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- Various factors push up wine prices
- Increased duties drive wine price inflation in 2019
- Pound’s weakness drives category inflation over 2016-19…
- …while boosting exports of British wine
- Industry bodies voice fear of increased administrative costs post-Brexit
- Weather extremes of 2018-19 affect wine production in various countries
- Consumers’ financial health is crucial for the category
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- Figure 15: CPI vs wage growth, January 2014-July 2019
- A third of adults have limited their alcohol intake
- Industry submits proposal for more detailed alcohol labelling
- Ageing UK population could affect various segments differently
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- Figure 16: Purchase of still and sparkling wine, by type, by age, August 2019
Companies and Brands – What You Need to Know
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- Mixed results for brands in the still wine category
- Freixenet and I Heart buck the negative trend in sparkling wines
- Further activity in low/non-alcoholic, canned and English wines
- Advertising spend on wine falls in 2018
Market Share
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- Still wine category is highly fragmented
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- Figure 17: Leading brands’ sales and shares in the UK retail still wine market, by value and volume, 2016/17-2018/19
- Own-label continues to lead still wine sales
- Yellow Tail boosted by increased advertising support…
- …taking sales from Echo Falls and Blossom Hill
- Freixenet bucks the negative trend in sparkling wine
- I Heart gains from strengthened public profile after merger with Freixenet
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- Figure 18: Leading brands’ sales and shares in the UK retail sparkling wine market, by value and volume, 2016/17-2018/19
- Taittinger pushes forward in declining Champagne market
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- Figure 19: Leading brands’ sales and shares in the UK retail Champagne market, by value and volume, 2016/17-2018/19
- Buckfast’s rise drives growth in English fortified wine
- Buckfast retains volume sales in Scotland despite Minimum Unit Pricing
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- Figure 20: Leading brands’ sales and shares in the UK retail fortified wine market, by value and volume, 2016/17-2018/19
Launch Activity and Innovation
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- Further activity in low/non-alcoholic wines
- Freixenet promotes its non-alcoholic variants as a less sweet option
- Hardys emphasises that its de-alcoholised chardonnay retains the original’s flavour
- Lindeman’s extends into the low/non-alcoholic drinks sector
- Organic launch puts the focus on health
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- Figure 21: Examples of non-alcoholic/alcohol-free wine launches, 2018-19
- Established and new companies launch low-calorie wines
- Pernod Ricard revives the Brancott Estate Flight series
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- Figure 22: Examples of wine launches positioned as a healthier option, 2019
- Botanical sparkling wine blurs the boundaries with gin
- Further activity in canned wine
- New brand Nice emphasises its suitability for multiple occasions
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- Figure 23: Product from the Nice canned wine range, 2019
- Leading brands extend into canned wines
- Larkin launches ‘super premium’ canned wine
- New canned wines from Aldi heat up the competition for branded products
- More English wines appear on the market
- Chapel Down and Nyetimber extend their ranges
- Blackbook launches ‘London-grown, London-made’ wine
- Bluebell Vineyard makes its debut
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- Figure 24: Examples of English wine launches, 2019
- Lyme Bay creates English wine for Morrisons
- Hybrid products blur the boundaries with spirits
- Blossom Hill blends wine with gin
- Echo Falls brings out spirit-wine fusions
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- Figure 25: Example of Echo Falls Fusion range, 2019
- Environmental claims are a timely move
- Ocean conservation-supporting wine brand launches at Star Pubs & Bars
- Pernod Ricard unveils sustainability-focused Brancott Estate Living Land series
- Wye Valley Meadery pledges to protect the bees
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- Figure 26: Examples of wine launches with environmental sustainability claims, 2019
- Celebrity partnerships continue
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- Figure 27: Invivo Wines and Sarah Jessica Parker collaborate on white wine, 2019
- Cono Sur uses heat-sensitive label to encourage chilled red wine serves
Advertising and Marketing Activity
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- Advertising spend on wine falls in 2018
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- Figure 28: Total above-the-line, online display and direct mail advertising expenditure on still, sparkling and fortified wine, 2015-19 (sorted by 2018)
- Retailers continue to dominate advertising spend on wine
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- Figure 29: Total above-the-line, online display and direct mail advertising expenditure on still, sparkling and fortified wine, by advertiser, 2015-19 (sorted by 2018)
- Supermarkets push ‘quality for less’ message
- Lidl continues with price comparisons in Christmas advert for Champagne
- Asda promotes its Champagne as the perfect choice for Valentine’s Day
- M&S portrays its rosé wine as affordable indulgence
- Yellow Tail focuses on occasions and friendship…
- …and portrays its wines as a way to celebrate small achievements
- Moët & Chandon portrayed as a must-have for life’s key moments
- Other selected campaigns
- Nyetimber tours the UK with a pop-up bar in a bus
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- Figure 30: Nyetimber bus outside National Theatre, London, 2019
- I Heart pushes lifestyle associations in its first ever TV advert
- Naked Wines sends out wine samples in eco-friendly bottles to attract new users
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Seven in 10 adults drink wine
- Different wine types have different demographics
- Consumers spend more on wine as a gift than for personal use
- Vintage, specific origin and UK-sourced wines attract interest
- Many wine drinkers are open to experimenting
- Over half of wine users/buyers are in favour of nutritional labelling
Usage of Wine
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- Seven in 10 adults drink wine
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- Figure 31: Usage of wine, July 2019
- A third of adults drink wine once a week or more
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- Figure 32: Usage frequency for wine, July 2019
- Younger and better-off consumers are the most frequent wine drinkers
Purchase of Wines
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- Seven in 10 adults buy wine
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- Figure 33: Purchase of wine, by type, July 2019
- Buying of still white and red wine is highest among over-55s…
- …while rosé and sparkling wines are favoured by under-35s
- Under-35s particularly value Champagne
- Low and non-alcoholic wine remain niche
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- Figure 34: Purchase of wines, by strength, August 2019
- Under-35s are the most likely to buy low/non-alcoholic wine
- Need for companies to emphasise low/non-alcoholic wines’ quality credentials
- Mixed drinks can help wine makers to tap into the alcohol moderation trend
Spending on Wine by Occasion
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- Consumers spend more on wine as a gift than for personal use
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- Figure 35: Spending on wine, by occasion, July 2019
- Companies have various options to attract people willing to pay £15 or more for wine
Attributes Seen as Worth Paying More for Wine
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- Various options for companies to add value
- Three in 10 would pay more for wine from a good vintage
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- Figure 36: Attributes seen as worth paying more for wine, July 2019
- Under-25s are especially willing to pay more for award-winning wine
- One in five would pay more for origin wine
- More women than men would pay more for wine from UK vineyards
- Focus on regional provenance should benefit producers of UK-sourced wines
Behaviours Relating to Wine
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- Many wine drinkers are open to experimenting
- Three quarters of drinkers like trying wines from countries they haven’t tried before
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- Figure 37: Behaviours relating to wine, July 2019
- Less familiar sparkling wines appeal to 44% of users
- Time of year affects choice among half of wine drinkers
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- Figure 38: Rosé wine launches highlighting a connection to summer, 2016-19
- Promoting chilled serves can help to boost interest in red wine in summer
- A third of wine users consider themselves to be connoisseurs
- Harness users’ sense of connoisseurship to boost sales
Attitudes towards Wine
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- Over half of wine users/buyers are in favour of nutritional labelling
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- Figure 39: Behaviours relating to wine, July 2019
- Red wine enjoys a health halo
- Half of buyers find choice of wine in supermarkets overwhelming
- Suggestions based on previous purchases should help to drive trial
- Educate shoppers to help them feel more confident about wine
- Reviews can help to guide choice
- Opportunities to grow usage of canned wine
- Build premium and quality associations to boost appeal of canned wine
- Premium products in cans could be positioned as a ‘less but better’ option
- Cans’ smaller format can be positioned as helping with portion control…
- …and as an ethical option
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 40: Total volume sales of still, sparkling and fortified wine, 2014-24
- Figure 41: Forecast of UK sales of still, sparkling and fortified wine, by value, best- and worst-case, 2019-24
- Figure 42: Forecast of UK sales of still, sparkling and fortified wine, by volume, best- and worst-case, 2019-24
Appendix – Market Segmentation
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- Figure 43: Off-trade value and volume sales of sparkling wine (excluding Champagne), by type, 2017-19
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Appendix – Market Share
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- Figure 44: Leading brand owners’ sales and shares in the UK retail still wine market, by value and volume, 2016/17-2018/19
- Figure 45: Leading brand owners’ sales and shares in the UK retail sparkling wine market, by value and volume, 2016/17-2018/19
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- Figure 46: Leading brand owners’ sales and shares in the UK retail Champagne market, by value and volume, 2016/17-2018/19
- Figure 47: Leading brand owners’ sales and shares in the UK retail fortified wine market, by value and volume, 2016/17-2018/19
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Appendix – Purchase of Wines
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- Figure 48: Purchase of wines, by broad type, July 2019
- Figure 49: Purchase of wines, by format, July 2019
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