Value growth for wine in on and off trade

The latest sales data shows wine sales growing in overall value in pubs, clubs (+3.5%) and restaurants as well as in shops (+2.7%), despite a fall in volumes.

Spirits sales in shops were strong with value growth (+6.6%) exceeding volume gains (+1.7%) but overall sales of spirits were down in the on-trade (-4.6% volume, -3.7% value).

The figures are contained in the latest WSTA Quarterly Market Report, which draws on data from leading independent sources including Nielsen, CGA Strategy and IWSR with analysis by Tim Wilson, author of the Wilson Drinks Report.

Wine emerges as the best performer in the on-trade in the 12 months to October 2 with sales of rosé particularly strong (+4.2% value) and sales of white wine not far behind (+3.9% value).

The sales data also shows that the average price of a bottle of wine rose to £4.47 and the strongest performers in the off-trade are RTDs (+10.8% value), Champagne (+9.4% value) and sparkling wine (+7.8% value).

There was strong value growth in off trade sales of wine in following price categories: £4.01 – £5.00 (+24.4%), £6.01 – £7.00 (+28.3%), £9.01 – £10.00 (+23.7%).

In the on-trade, wines from Argentina were the stand out performers (+50.9% value) and in the spirits category, Golden Rums showed the highest growth (+20.6% value)  

When asked whether they will be buying wine or spirits as a gift this Christmas, 48% of 1,742 British adults taking part in a YouGov Omnibus Panel said they would probably or definitely buy wine, 43% said spirits.
 
Commenting on the latest sales figures WSTA CEO Jeremy Beadles said: "It's encouraging to see wine delivering value in pubs and restaurants as well as in the off-trade, despite the reduction in volumes.

"The breakdown shows rosé and white as the strongest performers in food-led pubs, whilst all wines are delivering value growth in hotels and restaurants.  Let's hope next month's VAT increase does not turn customers away."

About WSTA
The WSTA is the UK lobbying organisation for the wine and spirit industry representing over 310 companies producing, importing, transporting and selling wines and spirits. It campaigns to promote the industry's interests with governments at home and abroad and it works with members to promote the responsible production, marketing and sale of alcohol.

1 January 2011 - Felicity Murray