Wine - Ireland - February 2017

OVERVIEW
What you need to know
Issues covered in this Report
EXECUTIVE SUMMARY
The market
Figure 1: Total wine sales, by segment, by value, NI and RoI, 2016
Forecast
Figure 2: Indexed total wine sales, by value, IoI, on-trade and off-trade, 2011-21
Market factors
Increases in wine excise for NI and RoI
Discounters could reap the benefits of higher wine costs
Consumer sentiment falls between 2015 and 2017
Chile trumps Australia
Companies and innovations
The consumer
White wine most preferred type among Irish consumers
Figure 3: Types of wine consumers have drunk in home the last six months, Ni and RoI, April 2016
Grape type and special offers motivate consumers to buy wine
Figure 4: Attributes (excluding price) which would see consumers choose one product over another when buying wine, NI and RoI, November 2016
Descriptive terms highly important for targeting wine to Irish women
Figure 5: Agreement with statements relating to wine, NI and RoI, November 2016
THE MARKET – WHAT YOU NEED TO KNOW
Low growth in IoI wine market
White wine accounts for largest sector
Increases in wine excise for NI and RoI
Discounters could reap the benefits of higher wine costs
Consumer sentiment falls between 2015 and 2017
Chile trumps Australia
MARKET SIZE AND SEGMENTATION 
Growth in the wine market stalled by lower consumer sentiment
Figure 6: Total wine sales, by value, IoI, NI and RoI, 2011-21
Figure 7: Total wine sales, by volume, IoI, NI and RoI, 2011-21
On-trade improves in RoI, declines in NI
Figure 8: Total wine sales, by value, IoI, NI and RoI, on-trade, 2011-21
Figure 9: Total wine sales, by volume, IoI, NI and RoI, on-trade, 2011-21
Off-trade sees year-on-year growth
Figure 10: Total wine sales, by value, IoI, NI and RoI, off-trade, 2011-21
Figure 11: Total wine sales, by volume, IoI, NI and RoI, off-trade, 2011-21
2017 likely to see price inflation for NI off-trade
Figure 12: Sterling (£) to euro (€) exchange rate, 2010-17
White wine continues to be most valuable segment in IoI
Figure 13: Total wine sales, by segment, by value, NI and RoI, 2011-16
MARKET DRIVERS
Increases in wine tax and duty impacting sales
Figure 14: Excise rates for a €9 standard bottle of wine, RoI, 2011-16
Figure 15: UK excise duty rates for wines, 2011-16
UK and Ireland wines have highest excise rates in EU
Figure 16: Excise rates on a bottle of wine (€) for selected EU countries, 2016
Discounters could reap the benefits of higher wine costs
Figure 17: Estimated market share of off-trade distribution channels for wine (volume sales), RoI, 2012 and 2015
Consumer sentiment waning after Brexit and Trump election
Figure 18: Consumer confidence index, RoI, October 2015-December 2016
Figure 19: Consumer sentiment index, NI, Q1 2012-Q4 2016
Figure 20: How consumers feel about their future personal situation after the results of Brexit, NI and RoI, August 2016
Consumers see a night out as being more expensive
Figure 21: Agreement with selected statements relating to nights out of the home, NI and RoI, August 2016
Figure 22: Consumer Price Index for all alcoholic beverages and wine, UK/NI, 2011-16
Figure 23: Consumer Price Index for all alcoholic beverages and wine, RoI, 2011-17
Irish consumers shift in wine preference
Figure 24: Number of cases of table wine sold, by country of origin, RoI, 2008-15
Natural disasters and extreme weather an issue for wine crops
KEY PLAYERS AND INNOVATIONS – WHAT YOU NEED TO KNOW
Diageo leaves the table
Health and wellness trends are the biggest threat to wine consumption
Craft properties not being received
Industry terms not resonating with consumers
WHO’S INNOVATING? 
2016 sees increase in wine launches for the UK and Ireland
Figure 25: New products launched within the wine sector in the UK and Ireland, 2013-17
Wine in a can
Wine and alcohol consumption in the future
KEY PLAYERS
Barry & Fitzwilliam
Key Facts
Product Portfolio
Direct Wine Shipments
Key Facts
Product Portfolio
Brand NPD
Recent Developments
Winemark
Key Facts
Product Portfolio
Recent Developments
James Nicholson Wine
Key Facts
Product Portfolio
Brand NPD
Recent Developments
The Corkscrew
Key Facts
Product Portfolio
Brand NPD
Red Nose
Key Facts
Product Portfolio
Brand NPD
Recent Developments
Tyrrell & Company
Key Facts
Product Portfolio
Recent Developments
Tindal Wine Merchants LTD.
Key Facts
Product Portfolio
Brand NPD
Recent Developments
Irish Distillers (Pernod Ricard)
Key Facts
Product Portfolio
Brand NPD
Recent Developments
THE CONSUMER – WHAT YOU NEED TO KNOW
White wine most preferred type among Irish consumers
Grape type and special offers motivate consumers to buy wine
Descriptive terms highly important for targeting wine to Irish women
THE CONSUMER – TYPES OF WINE USED
White wine most preferred type among Irish consumers
Figure 26: Types of wine consumers have drunk in home or out of home in the last six months, Ni and RoI, April 2016
Trend to night in helping to boost wine usage at home
Wine sees strong usage among affluent consumers
Figure 27: Where consumers have bought still white wine in the last six months, by social class, NI and RoI, November 2016
Men show stronger in-home usage of wine
Figure 28: Consumption of still red wine and rosé wine in the last six months, by gender, NI and RoI, November 2016
Sparkling wines see stronger usage with married couples
Figure 29: Consumption of Champagne/ Prosecco/ Cava in the last six months, by marital status, NI and RoI, November 2016
THE CONSUMER – IMPORTANT FACTORS WHEN CHOOSING WINE
Grape type important to RoI, special offers to NI
Figure 30: Attributes (excluding price) which would see consumers choose one product over another when buying wine, NI and RoI, November 2016
Type of grape key consideration for the over-45s
Figure 31: Consumers who consider type of grape (eg Chardonnay, Sauvignon Blanc) important when choosing one wine over another, by age, NI and RoI, November 2016
Special offers appeal more to NI consumers
Figure 32: Consumers who consider being on special offer important when choosing one wine over another, by social class, NI and RoI, November 2016
Country of origin more important to men
Figure 33: Consumers who consider country of origin important when choosing one wine over another, by gender, NI and RoI, November 2016
Figure 34: Number of cases of table wine sold, by selected country of origin, RoI, 2008-15
THE CONSUMER – ATTITUDES TOWARDS WINE 
On-pack information appeals to Irish drinkers
Figure 35: Agreement with statements relating to wine, NI and RoI, November 2016
Information key to encourage greater wine usage among women
Figure 36: Agreement with the statement ‘Terms used to describe the flavour of wine are helpful (eg on-pack, on menu etc)’, by gender, NI and RoI, November 2016
Half of consumers prefer to stick to wines they know
Figure 37: Agreement with the statement ‘I generally stick to the same variety of wine’, by age, NI and RoI, November 2016
Screwcaps find favour with less affluent consumers
Figure 38: Agreement with the statement ‘I prefer wines with screwcaps to wines with corks’, by social class, NI and RoI, November 2016
Own-label and discounter wine seen as improving
Figure 39: Agreement with the statement ‘I find the quality of own-label/ discounter wine has improved in the last 12 months (eg Tesco Finest)’, NI and RoI, November 2016
Figure 40: Alcohol products that consumers would typically buy, own-label, NI and RoI, November 2016
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Definition
Data sources
Generational cohorts
Abbreviations
APPENDIX – THE CONSUMER 
NI Toluna data
Figure 41: Where consumers have bought still white wine in the last six months, by demographics, NI, November 2016
Figure 42: Where consumers have bought still red wine in the last six months, by demographics, NI, November 2016
Figure 43: Where consumers have bought still rosé wine in the last six months, by demographics, NI, November 2016
Figure 44: Where consumers have bought Champagne/ Prosecco/ Cava in the last six months, by demographics, NI, November 2016
Figure 45: Where consumers have bought other sparkling wine (eg Moscato, Crémant) in the last six months, by demographics, NI, November 2016
Figure 46: Where consumers have bought any fortified wine (eg port/sherry/vermouth) in the last six months, by demographics, NI, November 2016
Figure 47: Where consumers have bought any dessert wine (eg Sauternes) in the last six months, by demographics, NI, November 2016
Figure 48: Where consumers have bought any wine in a box/pouch (eg bag in box) in the last six months, by demographics, NI, November 2016
Figure 49: Where consumers have bought any lower/non-alcohol still wine (eg 5.5 ABV or lower) in the last six months, by demographics, NI, November 2016
Figure 50: Where consumers have bought any fruit-flavoured wine (eg apple, strawberry) in the last six months, by demographics, NI, November 2016
Figure 51: Where consumers have bought wine on draught in the last six months, by demographics, NI, November 2016
Figure 52: Where consumers have bought any reduced sugar/ low-calorie wines (eg Skinny Prosecco), by demographics, NI, November 2016
Figure 53: Attributes (excluding price) which would see consumers choose one product over another when buying wine, by demographics, NI, November 2016
Figure 54: Attributes (excluding price) which would see consumers choose one product over another when buying wine, by demographics, NI, November 2016 (continued)
Figure 55: Attributes (excluding price) which would see consumers choose one product over another when buying wine, by demographics, NI, November 2016 (continued)
Figure 56: Agreement with the statement ‘I find the quality of own-label/ discounter wine has improved in the last 12 months (eg Tesco Finest)’, by demographics, NI, November 2016
Figure 57: Agreement with the statement ‘Concerns about not finishing the bottle put me off drinking wine at home’, by demographics, NI, November 2016
Figure 58: Agreement with the statement ‘Terms used to describe the flavour of wine are helpful (eg on-pack, on menu etc)’, by demographics, NI, November 2016
Figure 59: Agreement with the statement ‘I would drink wine at home with a meal more often if there was a wider range of smaller-sized bottles (eg half size)’, by demographics, NI, November 2016
Figure 60: Agreement with the statement ‘I have bought wine from an online retailer in the last 3 months’, by demographics, NI, November 2016
Figure 61: Agreement with the statement ‘I would like to be able to order wine with/without a meal via delivery services (eg Deliveroo)’, by demographics, NI, November 2016
Figure 62: Agreement with the statement ‘I would be interested in wine-based drinks with unusual fruity flavours (eg pear drops)’, by demographics, NI, November 2016
Figure 63: Agreement with the statement ‘I would like a wider range of wines sold in smaller bottle sizes (eg single serve) in pubs/bars restaurants’, by demographics, NI, November 2016
Figure 64: Agreement with the statement ‘Wine on tap in a pub/bar/restaurant would appeal to me’, by demographics, NI, November 2016
Figure 65: Agreement with the statement ‘I prefer wines with screwcaps to wines with corks’, by demographics, NI, November 2016
Figure 66: Agreement with the statement ‘I know enough about wine to make an informed decision when trying different types’, by demographics, NI, November 2016
Figure 67: Agreement with the statement ‘I generally stick to the same variety of wine’, by demographics, NI, November 2016
RoI Toluna data
Figure 68: Where consumers have bought still white wine in the last six months, by demographics, RoI, November 2016
Figure 69: Where consumers have bought still red wine in the last six months, by demographics, RoI, November 2016
Figure 70: Where consumers have bought still rosé wine in the last six months, by demographics, RoI, November 2016
Figure 71: Where consumers have bought Champagne/ Prosecco/ Cava in the last six months, by demographics, RoI, November 2016
Figure 72: Where consumers have bought other sparkling wine (eg Moscato, Crémant) in the last six months, by demographics, RoI, November 2016
Figure 73: Where consumers have bought any fortified wine (eg port/sherry/vermouth) in the last six months, by demographics, RoI, November 2016
Figure 74: Where consumers have bought any dessert wine (eg Sauternes) in the last six months, by demographics, RoI, November 2016
Figure 75: Where consumers have bought any wine in a box/pouch (eg bag in box) in the last six months, by demographics, RoI, November 2016
Figure 76: Where consumers have bought any lower/non-alcohol still wine (eg 5.5 ABV or lower) in the last six months, by demographics, RoI, November 2016
Figure 77: Where consumers have bought any fruit-flavoured wine (eg apple, strawberry) in the last six months, by demographics, RoI, November 2016
Figure 78: Where consumers have bought wine on draught in the last six months, by demographics, RoI, November 2016
Figure 79: Where consumers have bought any reduced sugar/ low-calorie wines (eg Skinny Prosecco), by demographics, RoI, November 2016
Figure 80: Attributes (excluding price) which would see consumers choose one product over another when buying wine, by demographics, RoI, November 2016
Figure 81: Attributes (excluding price) which would see consumers choose one product over another when buying wine, by demographics, RoI, November 2016 (continued)
Figure 82: Attributes (excluding price) which would see consumers choose one product over another when buying wine, by demographics, RoI, November 2016 (continued)
Figure 83: Agreement with the statement ‘I find the quality of own-label/ discounter wine has improved in the last 12 months (eg Tesco Finest)’, by demographics, RoI, November 2016
Figure 84: Agreement with the statement ‘Concerns about not finishing the bottle put me off drinking wine at home’, by demographics, RoI, November 2016
Figure 85: Agreement with the statement ‘Terms used to describe the flavour of wine are helpful (eg on-pack, on menu etc)’, by demographics, RoI, November 2016
Figure 86: Agreement with the statement ‘I would drink wine at home with a meal more often if there was a wider range of smaller-sized bottles (eg half size)’, by demographics, RoI, November 2016
Figure 87: Agreement with the statement ‘I have bought wine from an online retailer in the last 3 months’, by demographics, RoI, November 2016
Figure 88: Agreement with the statement ‘I would like to be able to order wine with/without a meal via delivery services (eg Deliveroo)’, by demographics, RoI, November 2016
Figure 89: Agreement with the statement ‘I would be interested in wine-based drinks with unusual fruity flavours (eg pear drops)’, by demographics, RoI, November 2016
Figure 90: Agreement with the statement ‘I would like a wider range of wines sold in smaller bottle sizes (eg single serve) in pubs/bars restaurants’, by demographics, RoI, November 2016
Figure 91: Agreement with the statement ‘Wine on tap in a pub/bar/restaurant would appeal to me’, by demographics, RoI, November 2016
Figure 92: Agreement with the statement ‘I know enough about wine to make an informed decision when trying different types’, by demographics, RoI, November 2016
Figure 93: Agreement with the statement ‘I prefer wines with screwcaps to wines with corks’, by demographics, RoI, November 2016
Figure 94: Agreement with the statement ‘I generally stick to the same variety of wine’, by demographics, RoI, November 2016