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Wine - UK - January 2005

INTRODUCTION AND ABBREVIATIONS
Definition
Consumer research
Advertising data
ACORN
 ABBREVIATIONS
PREMIER INSIGHT
Consumer confidence and familiarity
Injecting interest into wine buying
Salience is key
EXECUTIVE SUMMARY
Wine sales continue to thrive
Volume outpacing value
Make it trendy
Impact of the New World
Consolidation on the cards in fragmented market
Marketing spend goes below-the-line
Shift to home drinking continues unabated
Wine, women and…
MARKET DRIVERS
The consumption of alcoholic drinks
Figure 1: TGI data on consumption of alcoholic drinks, 1999-2004
Excise Duty
Figure 2: UK excise duty rates on still wines (greater than 5.5% ABV but less than 15% ABV), 1999-2004
PDI and consumer expenditure
Figure 3: Trends and projections in PDI and consumer expenditure, 1999-2008
Trends and projections in UK population
Figure 4: Trends and projections in UK population, by age group, 1999-2008
Women in the workplace and changes in drinking culture
Figure 5: Workforce in employment in the UK, by gender, 1999-2008
Health
The benefits
Never heard of a wine belly?
Foreign travel
Entertaining at home
Entertaining yourself
The decline of the booze cruise
The burden of intervention
MARKET SIZE AND TRENDS
Price differentials
Value holds against excessive discounting
Figure 6: UK volume and value sales of wine, 1999-2004
Supermarkets thrive on New World offering
Old vs new
By popular demand
The unstoppable rise of the brand
Brand resistance
Put a cork in it
Faking it
Public opinion
MARKET SEGMENTATION
Figure 7: Average price of still wine by £ per litre, by segmentation, 1999-2004
Red wines
Figure 8: UK retail sales of still red/rosé wines, 1999-2004
Health slant
Rosé wines
White wines
Figure 9: UK retail sales of still light white wines, 1999-2004
Organic
2003 – a boost for organic
Fairtrade wine
Celebrity wines
‘Trendy’ wines
Wine boxes
THE SUPPLY STRUCTURE
 IMPORTS AND EXPORTS
Local production
Under regulation
Local trading
Foreign trade
Figure 10: UK imports of still light wine (<15% ABV), by country of origin, 1999-2003
Argentina
Australia
UK favourite
Bulgaria
Canada
Chile
Eastern Europe
Bulgaria
Romania
Slovenia
France
All about region
Strong contender
Pessimistic outlook
Germany
India
Israel
Italy
New Zealand
Portugal
South Africa
Spain
Uruguay
US
 COMPANIES AND BRANDS
Brand leaders
Figure 11: UK leading wine brands, by volume and value, 2004
On and off – a mixed picture
Room to consolidate
Off-trade picture
Figure 12: Brand shares of UK retail sales of still wine of fresh grape, off-trade, by volume, 2000-04
Backing the brand
Allied Domecq
Beringer Blass
Boyar Estates
Brown Forman
Constellation Europe
Moving with the times
Oomoo
A hardy range
West-side story
Diageo/Percy Fox
Ehrmann
J. E. Fells
First Drinks Brands
E&J Gallo
Les Grands Chais de France
Halewood International
Myliko
Negociants UK
Paragon Vintners
Pernod Ricard/Caxton Wines
PLB
Raisin Social
Southcorp
Vinfruco
Waverley Vintners
Western Wines
Others
Own-label
NEW PRODUCT DEVELOPMENT
The changing face of wine
Changing for health
Permission to drive?
Labelling
A new opening
Other
Boots go boozy
 NEW PRODUCT BRIEFS
January 2005
December 2004
November 2004
ADVERTISING AND PROMOTION
Figure 13: UK main monitored media advertising expenditure on still wines, 1999-2004
Battle of the brands
Figure 14: UK main monitored media advertising expenditure on top ten wine advertisers, 2003
Media outlet
Figure 15: Advertising expenditure breakdown by media type, 2000-03
A word from our sponsors…
Sponsoring friends
Blossoming rivals
TV developments
 SUPPORT ACTIVITY
Aldi
Argentina
Beringer Blass
Bottle Green
Pernod Ricard/Caxton Tower Wines
Constellation Europe
Diageo/Percy Fox
First Drinks Brands
E&J Gallo
German Wine Institute
PLB
Raisin Social
Sainsbury's
Sopexa – Food & Wine from France
South Africa
Southcorp
Western Wines
Wine Institute of California
Below-the-line
Figure 16: Below-the-line activity as recorded by the POS+ database, 2004
Other promotions
Cellar Trends
Ehrmann
DISTRIBUTION
In-home boom
Figure 17: UK distribution of wine by trade sector, 2000-04
Multiple dominance
Waitrose
Spar
Multiple specialists
Unwins
Majestic Wines
The Internet
Mail order
THE CONSUMER
Figure 18: UK consumption of various alcoholic drinks, 1999-2004
Weight of usage
Figure 19: Consumption of bottled table wine, 1999-2004
Understanding the consumer base
Female bias
Growing a mature audience
Affluent drinkers
Developing a taste
Consumer buying trends
Figure 20: Consumers prepared to pay more for good quality wine, 1999-2004
Geographical leaning
Figure 21: Consumption of bottled table wine, by country of origin, 1999-2004
New World dominance
Figure 22: Consumption of other bottled table wine, by country of origin, 1999-2004
The heavy use profile
Figure 23: Wines consumed by wine buffs/tipplers, by country of origin, 2004
Boxed market
Figure 24: Purchase of wine in a box, 1999-2004
Box-base
Boxing for two
Purchasing habits
Colour and origin
Brand development
Familiarity breeds consumption
Shunning the in-store expert
Purchasing demographics
Socio-economic group key for splashing out
Female eye for a bargain
ABs draw on wide influences
Knowledge from the broadsheets
 DETAILED DEMOGRAPHICS
Bottled table wine weight of usage
Figure 26: Consumption of bottled table wine, by demographic sub-group, 2004
Boxed wine demographics
Figure 27: Frequency of purchasing wine in a box, by demographic sub-group, 2004
Attitudes towards wine purchase
Figure 28: Most popular attitudes towards purchasing wine, by demographic sub-group, October 2004
Figure 29: Most popular attitudes towards purchasing wine, by demographic sub-group, October 2004
Figure 30: Most popular attitudes to purchasing wine, by demographic sub-group, October 2004
Figure 31: Further popular attitudes towards purchasing wine, by demographic sub-group, October 2004
Figure 32: Further popular attitudes towards purchasing wine, by demographic sub-group, October 2004
Figure 33: Further popular attitudes towards purchasing wine, by demographic sub-group, October 2004
THE CONSUMER – UNDERSTANDING THE COMPETITIVE SET
Comparison of in-home versus out-of-home drinking
Figure 34: Comparison of in- vs out-of-home drinking, 2001-04
Off-trade trends
The on-trade picture
In-home wine analysis
Figure 35: Consumer analysis of in-home consumption of wine, by type, by gender, age, socio-economic status, region and lifestage, October 2004
Figure 36: Consumer analysis of in-home consumption of wine, by type, by media usage, commercial TV viewing and supermarket usage, October 2004
The competitive set
Expanding the competitive set
Out-of-home
Figure 37: Consumer analysis of out-of-home consumption of wine, by type, by gender, age, socio-economic status, region, ACORN category, presence of children and lifestage, October 2004
The red wine effect
Drinking pink
Breaking the beer culture
Consistent trends
Influence of attitudes on in-home drinking patterns
Figure 38: Influence of attitudes on in-home drinking patterns against attitudes toward wine purchase, October 2004
Breaking the lager set
Influence of attitudes on out-of-home drinking patterns
Figure 39: Cross analysis of out-of-home drinking patterns against attitudes toward wine purchase, October 2004
 WINE CONSUMER TYPOLOGY GROUPS
Figure 40: Consumer typology groups for wine purchasing, October 2004
Impulse buyers (26% of sample)
Wine aware (18% of sample)
Aficionados (26% of sample)
Non-drinkers (30% of sample)
The beauty of Impulse
Cultivating the Wine Aware
Respecting the Aficionado
Time to grow
In-home wine repertoire
Figure 41: Repertoire of in-home wine consumption, October 2004
Taking the binge out of drinking
Affluence broadens repertoire
Figure 42: Repertoire of in-home wine consumption, October 2004
Out-of-home repertoire
Figure 43: Repertoire of out-of-home wine consumption, October 2004
Southern domination of on-trade wine
Red peaks
Figure 44: Repertoire of out-of-home wine consumption, October 2004
Correlation analysis
Figure 45: Correlation between stores shopped at and wines drunk at home, October 2004
 DETAILED DEMOGRAPHICS
In-home drinking
Figure 46: Type of drinks consumed in home in the last three months, by demographic sub-group, October 2004
Figure 47: Type of drinks consumed in home in the last three months, by demographic sub-group, October 2004
Out-of-home drinking
Figure 48: Type of drinks consumed out-of-home in the last three months, by demographic sub-group, October 2004
Figure 49: Type of drinks consumed out-of-home in the last three months, by demographic sub-group, October 2004
Consumer typology groups
Figure 50: Consumer typology groups for wine purchasing, by demographic breakdown, October 2004
Figure 51: Consumer typology groups for wine purchasing, by demographic breakdown, October 2004
Repertoire of in-home wine consumption
Figure 52: Repertoire of in-home wine consumption, by demographic sub-group, October 2004
Figure 53: Repertoire of in-home wine consumption, by demographic sub-group, October 2004
Repertoire of out-of-home wine consumption
Figure 54: Consumer typology groups for wine purchasing, by demographic breakdown, October 2004
Figure 55: Consumer typology groups for wine purchasing, by demographic breakdown, October 2004
THE FUTURE
Out with the old…
…and in with the really new?
GM vines to be planted in France
Wine investment
Edutainment
Low-carb wines
FORECAST
Healthy growth forecast
Figure 56: Forecast of the UK still wine market, by value, 2004-09
Red dominates volume growth
Figure 57: Forecast of the UK still wine market, by volume, 2004-09
Red/Rosé retains majority share…
…but white shows greater value growth
Healthy eating, cheap drinking…
Factors incorporated in the forecast

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