Wine is losing market share in the UK as prices rise
Accolade Wine's WineNation 2011 report has shown that total alcohol sales have fallen by -2.8% in the past 12 weeks compared to the same period last year, while wine fell by -5.6%. What's more, food-led pubs, formerly a mainstay for the category, have seen wine sales fall more dramatically, as total alcohol has grown by 6.7%, while wine sales are down -3.4%.
So why the downturn? According to the report, growing popularity of cocktails and other mixed drinks, combined with rising wine prices in the on-trade, has helped the decline. The research showed that in the last 12 weeks wine has hit a tipping point costing £2.34 more per bottle than the same period last year.
Accolade Wine say they will need to look at new product innovation such as 75cl bottles, new regions, price points and varietals. They also want to make wine a more attractive option to the younger market. Research is promising as it showed that wine knowledge amongst the younger market had improved. So whilst sales are not currently high amongst this group if they have more engagement now they are more likely to be wine drinkers in the future.