For the first time in over a decade wine sales are in decline in the UK.  

• White wine in decline
• Red wine sales static
• Rosé sales growing at + 35%.

Oxford, UK, 26 May 2006

Latest information from Market Research company ACNielsen shows that for the first time in living memory UK consumers have started to show restraint when it comes to buying wine. The UK shoppers’ enduring love affair with wine has been a staple trend in the UK drinks industry driven by strongly branded New World wine, TV’s love affair with food and drink programmes, and a generally more wine savvy public , but this latest reversal in trend is significant.

Stewart Blunt, Wine Specialist at ACNielsen said “There are probably a number of factors combining to result in this change of fortune for wine. Growing consumer debt and sharply rising utilities, council tax and petrol prices put pressure on households to curb their indulgences, and a growing awareness of healthy eating and drinking can also have an impact – wine is a likely casualty when economizing.”

There has been an increase in Retail Wine price movements over recent years, as Consumers traded up to better quality and became better educated on wines. Yet given the recent slow down in wine, sales of other alcoholic drinks, particularly “long drinks”, did well in the latest 8 week period, which included the later Easter. Most spirits also did well in the same 8 week period. Interestingly, Rosé Wine also bucked the trend with continuing growth.

Blunt went on to say “It is interesting to see that despite a restrained wine market, there has been a real dynamism in Rosé, with sales growing at 35% per annum, it now accounts for nearly 7 bottles sold in every 100. It is driven by the USA, and we’ve been introduced to sweeter, lighter, easy-drinking Zinfandel and Grenache, triggering a pink phenomena, as Rosés from all countries have seen a strong uplift in sales. Champagnes and sparkling wines have also seen strong uplift in pink – it seems the fashionable thing right now – it looks good in the glass, goes down easily and is refreshing”

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As European personal limits allow 110 litres, then the cross channel trip is perhaps more attractive and this years 4p duty increase in the Budget may also reduce demand on home ground.

Blunt concluded, “Unless the market picks up, then wine could be set to have a tough year or two. A great summer, an England World Cup win and lower interest rates may all change this, of course. The good news is the consumer will continue to benefit on price, but the industry needs to ensure this is not at the cost of quality”

Source of data
Data is sourced from ACNielsen’s GB Off Trade Scan*Track Service, covering the Year and the 8 weeks to 22ndth April 2006, compared to the same period in 2005. Also referenced is ACNielsen’s Retail Audit of GB On Trade for the same period.

About ACNielsen
ACNielsen, a VNU company, is the world’s leading marketing information company. Offering services in more than 100 countries, the company provides measurement and analysis of marketplace dynamics and consumer attitudes and behaviour. Clients rely on ACNielsen’s market research, proprietary products, analytical tools and professional service to understand competitive performance, to uncover new opportunities and to raise the profitability of their marketing and sales campaigns.
For further information, please visit www.acnielsen.co.uk

52 weeks to 22 April 2006

8 week period to 22 April 2006