Chilean wines outperform market in UK

Nielsen figures for Q4 09 indicate that wine sales in the UK have been fairly resilient during what has been a challenging economic year.  But some wine regions have faired better than others. Chile, for example, lived up to its reputation for outstanding value for money, thus maintaining its growth across all UK trade sectors for the seventh year running.

While total wine sales in the UK off trade increased +3% in volume, and +7% in value, compared to no growth for the same period 2007/2008, wines from Chile outperformed the market considerably. Chilean wine sales leapt a staggering +26% in volume, and +28% in value (the only other country to register better growth percentages was New Zealand). Total red wine sales in the UK increased by 1% and white 3% in the last 12 months, while Chilean red sales increased 20% and white 30% (second only to NZ).

Not surprisingly in a recession, Chilean wines’ value for money has helped its market share continue to rise with its value share now 8.6% and volume share 8.9% - its highest ever. And yet the average retail bottle price has risen by 9 pence to £4.16. Chile sales above £5 have risen in the last 12 months by 25% and are now 1.1 million cases, whilst UK total sales of wine over £5 only increased 11.5%.

Chile’s sales growth is all the more impressive because the increases are spread across all sectors of the trade:

• Supermarkets (multiple grocers) – volume +26% and value +29%

• Multiple specialists – volume +20% and value +16%

• Independents – volume +26% and value +31%

• On trade – volume +14% despite total on-trade market in decline at –4%

January 2010

Anakena vineyards at the foot of the Andes