Sorry for interrupting but there is something we need to tell you. Mintel sites use cookies to provide you with the best possible online experience. By continuing to browse this site you are agreeing to our use of cookies.
Call us at

Your Mintel Services

  • Mintel GNPD

    Global product launch activity in consumer packaged goods

  • Mintel Inspire

    Consumer trends and their business application

  • Mintel GNPD

    Global product launch activity in consumer packaged goods

Mintel Portal

The UK wine market is facing a challenging and tumultuous time as it seeks to cope with a number of adverse factors which are impacting on prices and profitability, and the market’s training of people to buy on discount comes back to haunt it.

However, it remains comfortably the most drunk alcohol ...

    Report Length: 185 pages

    1. Introduction

        • Definition
          • Abbreviations
          • Executive Summary

                • Figure 1: Forecast for total UK value sales of wine, 2006-16
              • Market factors
                • Figure 2: Annual inflation (based on RPI) for wines and spirits, by on- and off-trade, 2005-10
              • Companies, brands and innovation
                • Figure 3: Brand value sales and share within the UK off-trade wine market, 2010
              • The consumer
                  • Figure 4: Attitudes towards buying wine in supermarkets over the past 6 months, May 2011
                • What we think
                • Issues in the Market

                    • Will price rises trigger an inevitable decline in wine purchases over the next few years?
                      • Is wine branding ready to come of age?
                        • Is the UK ready to move beyond a heavy off-trade discounting model?
                          • Is it possible for wine to innovate in order to drive sales?
                          • Future Opportunities

                              • Guiding Choice
                                • Eco and Ego
                                • Internal Market Environment

                                  • Key points
                                    • Rapidly increasing duty…
                                      • Figure 5: Duty per 75 cl bottle of wine (5.5%-15% ABV), 2000-11
                                    • …combined with weakening of Sterling….
                                      • Figure 6: Annual average exchange rates for Sterling, 2005-10
                                    • …leads to escalating prices at the worst possible time…
                                      • Figure 7: Annual % change in price index (RPI) of wines and spirits compared to all items, 2000-10
                                    • …even (and especially) in the discount-driven multiples…
                                      • Figure 8: Annual % change in price index (RPI) of wines and spirits, by on- and off-trade, 2005-10
                                    • … leading to a significant decline in alcohol drinking in 2010
                                      • Figure 9: Trends in drinking total alcohol (including wine), by venue, 2006-10
                                    • Consumers lack brand guidance when buying wine…
                                      • Figure 10: Proportion of total take-home value sales accounted for by the top ten brands, for selected alcohol markets, 2009
                                    • …something which works to supermarkets’ advantage
                                      • Consumers have been trained to buy wine on discount
                                        • Wine needs to capitalise on the underlying interest in premiumisation
                                        • Broader Market Environment

                                          • Key points
                                            • Consumer income becomes increasingly squeezed…
                                              • Figure 11: Change in average weekly earnings compared to inflation in the UK, January 2005-April 2011*
                                            • An ageing population plays to wine’s advantage…
                                              • Figure 12: Proportion of the UK adult population, by age group, 2011
                                              • Figure 13: How respondents would describe their financial situation, by age group, May 2011
                                            • … as does the continued rise in the AB population
                                              • Figure 14: Forecast adult population trends, by socio-economic group, 2006-16
                                          • Competitive Context

                                            • Key points
                                              • The bigger alcohol categories see their usage eroded
                                                • Figure 15: Trends in drink types consumed in the past 12 months, 2006-10
                                              • Wine sees the greatest decline in drinkers between 2009 and 2010
                                                • In real terms, wine is losing ground to competitors in the off-trade…
                                                  • Figure 16: % annual change in off-trade value sales at constant 2006 prices for beer, wine and spirits, 2006-10
                                                • …In particular, spirits…
                                                  • …But holding its own in the on-trade
                                                    • Figure 17: % annual change in on-trade value sales at constant 2006 prices for beer, wine and spirits, 2006-10
                                                • Strengths and Weaknesses in the Market

                                                  • Strengths
                                                    • Weaknesses
                                                    • Who’s Innovating?

                                                      • Key points
                                                        • A challenging market in which to innovate
                                                          • Packaging formats become more flexible
                                                            • Smartphone opportunities empower wine consumers
                                                            • Market Size and Forecast

                                                              • Key points
                                                                • Tough market conditions impact on the UK wine market
                                                                    • Figure 18: Market size and forecast for total UK volume and value sales of wine, 2006-16
                                                                    • Figure 19: Forecast for total UK volume and value sales of wine, 2006-16
                                                                  • Forecast methodology
                                                                  • Market Segmentation

                                                                    • Key points
                                                                      • Volume sales in the off-trade will be impacted by spiralling prices…
                                                                        • …but value sales should benefit from a premium shift
                                                                          • Figure 20: Market size and forecast for UK off-trade volume and value sales of wine, 2006-16
                                                                        • A steadier performance from wine in the on-trade
                                                                          • Figure 21: Market size and forecast for UK on-trade volume and value sales of wine, 2006-16
                                                                        • Rosé and white wine are out-performing red
                                                                          • Figure 22: Wine volume sales, by colour, 2009-10
                                                                        • Australia and France are losing share
                                                                        • Market Share

                                                                          • Key points
                                                                            • A fragmented market where brands have little power
                                                                              • Figure 23: Brand value sales and share within the UK off-trade wine market, 2008-10
                                                                            • South African brands trump Australian
                                                                            • Companies and Products

                                                                              • Key points
                                                                                • Brown-Forman
                                                                                  • Concha y Toro
                                                                                    • Constellation Brands (now Accolade Wines)
                                                                                      • Diageo (Percy Fox)
                                                                                        • E & J Gallo
                                                                                          • Foster’s Wine (now Treasury Wine Estates)
                                                                                            • Pernod Ricard
                                                                                              • Villa Maria
                                                                                              • Channels to Market

                                                                                                • Key points
                                                                                                  • Grocery multiples continue to tighten their grip
                                                                                                    • Figure 24: Off-trade sales, split, by major channels, 2009-10
                                                                                                  • Pubs/bars move towards a 50% share of the on-trade
                                                                                                    • Figure 25: On-trade sales, split by major channels, 2009-10
                                                                                                  • Tesco aims to protect margins from online wine competitors
                                                                                                    • Figure 26: Average monthly unique users (000s), for selected wine websites, over the 12 month period (June 2010-May 2011)
                                                                                                • Brand Communication and Promotion

                                                                                                  • Key points
                                                                                                    • Supermarkets dominate above-the-line wine spend
                                                                                                      • Figure 27: Main monitored media advertising spend on wine (including Champagne/sparkling wine), 2006/07-2010/11*
                                                                                                    • Discounting is more a feature of the market than above-the-line branding
                                                                                                      • Laithwaites is the top ad spender
                                                                                                        • Figure 28: Above-the-line advertising spend on wine (including Champagne/sparkling wine), by brands, 2008/09-2010/11*
                                                                                                    • Consumer Usage of Wine

                                                                                                      • Key points
                                                                                                        • Wine penetration nose-dives in 2010
                                                                                                            • Figure 29: Trends in annual changes in the proportion of UK wine consumers, percentage points, 2007-10
                                                                                                          • Three quarters buy wine for in-home consumption…
                                                                                                              • Figure 30: Wine bought to drink either at home or in the on-trade, May 2011
                                                                                                            • Wine is an acquired taste
                                                                                                              • Figure 31: Wine purchasing, by gender, age and social grade, May 2011
                                                                                                            • 55-64-year-olds drink more on average than any other age group...
                                                                                                              • Figure 32: Average number of bottles of wine drunk per month, by gender and age, 2011
                                                                                                            • …but the more sizeable 35-54 population drink the most volume
                                                                                                                • Figure 33: Wine consumption per year, by age group, 2010
                                                                                                              • More women drink wine, but the average man drinks more of it
                                                                                                                • A link between usage and spend per bottle
                                                                                                                  • White wine is the most popular purchase type for either in or out of home
                                                                                                                    • Figure 34: Types of wine bought, to drink either at home or in the on-trade, May 2011
                                                                                                                  • Rosé is failing to capitalise fully within the on-trade
                                                                                                                    • Rosé is appealing to young females within the on-trade
                                                                                                                        • Figure 35: Index of types of wine bought, to drink either at home or in the on-trade, by gender, age group and socio-economic group, May 2011
                                                                                                                      • UK wine drinkers opt for variety
                                                                                                                          • Figure 36: Crossover in purchasing of red, white and rosé wine in the past 6 months, May 2011
                                                                                                                        • White wine encourages loyalty from females
                                                                                                                            • Figure 37: Red and white wine drinkers, by gender, age and socio-economic group, May 2011
                                                                                                                        • Consumer Spend on Wine

                                                                                                                          • Key points
                                                                                                                            • £8.33 is the average price UK consumers pay for a bottle of wine
                                                                                                                                • Figure 38: Typical price people pay for a bottle of wine by wine, for in-home and out of home, May 2011
                                                                                                                              • The younger the buyer the more they are prepared to pay in the off-trade
                                                                                                                                • Figure 39: Typical price people pay for a bottle of wine for in-home, by selected demographics, May 2011
                                                                                                                                • Figure 40: Occasions for drinking alcohol at home, 18-24-year-olds versus all drinkers, May 2011
                                                                                                                              • High earning 25-34-year-olds are the key target for the on-trade
                                                                                                                                  • Figure 41: Typical price people pay for a bottle of wine for out of home, by selected demographics, May 2011
                                                                                                                              • Consumer Attitudes towards Buying Wine in Supermarkets

                                                                                                                                • Key points
                                                                                                                                  • Wide supermarket wine selection seen as a benefit, not a turn off…
                                                                                                                                    • Figure 42: Attitudes towards buying wine in supermarkets over the past 6 months, May 2011
                                                                                                                                  • …although younger wine purchasers are much more likely to do so
                                                                                                                                      • Figure 43: Net difference in attitudes towards buying wine in supermarkets, 18-34-year-olds versus 35+, May 2011
                                                                                                                                    • The importance of brand building for women as well as the young…
                                                                                                                                        • Figure 44: Net difference in attitudes towards buying wine in supermarkets, women versus men, May 2011
                                                                                                                                      • A nation of wine drinkers reared on discounts
                                                                                                                                      • Consumer Attitudes towards Wine by Country

                                                                                                                                        • Key points
                                                                                                                                          • France wins on quality, Australia on accessibility
                                                                                                                                              • Figure 45: Attitudes towards wine, by country of origin, May 2011
                                                                                                                                            • Italy, Australia and RSA occupy a favourable mainstream position…
                                                                                                                                              • Figure 46: Attitudes towards wine, by country of origin, May 2011
                                                                                                                                            • …but France and Italy have more premium potential
                                                                                                                                              • Chile outflanks Spain in terms of value
                                                                                                                                              • Consumer Attitudes towards Wine Packaging

                                                                                                                                                • Key points
                                                                                                                                                  • Resistance to new wine formats which lack the “sophistication” of glass
                                                                                                                                                      • Figure 47: Views on whether non-glass formats have the same level of style and sophistication as bottled wine, May 2011
                                                                                                                                                    • …and to a lesser extent concern about inferior quality
                                                                                                                                                        • Figure 48: Views on whether non-glass formats are the equivalent in quality to bottled wine, May 2011
                                                                                                                                                      • Boxed wine has an increasingly relevant USP…
                                                                                                                                                        • Figure 49: Perceived advantages of non-glass wine formats, May 2011
                                                                                                                                                      • …but bag in box is a huge turn-off for younger consumers
                                                                                                                                                          • Figure 50: Net difference in attitudes towards non-glass wine formats, 18-34-year-olds versus 35+, May 2011
                                                                                                                                                      • Appendix – Internal Market Environment

                                                                                                                                                          • Figure 51: GfK NOP Consumer Confidence Index, January 1988-May 2011
                                                                                                                                                          • Figure 52: Trends in drinking alcohol amongst the population, 2006-10
                                                                                                                                                      • Appendix – Broader Market Environment

                                                                                                                                                          • Figure 53: Forecast of adult population trends, by age group, 2006-16
                                                                                                                                                          • Figure 54: GDP, PDI, consumer expenditure and savings, at constant 2011 prices, 2006-16
                                                                                                                                                      • Appendix – Consumer Usage of Wine by Type

                                                                                                                                                          • Figure 55: Most popular wine drunk over the past 6 months, by type, by demographics, May 2011
                                                                                                                                                          • Figure 56: Next most popular wine drunk over the past 6 months, by type, by demographics, May 2011
                                                                                                                                                          • Figure 57: Wine drunk at home over the past 6 months, by type, by demographics, May 2011
                                                                                                                                                          • Figure 58: Wine drunk at a pub/bar/restaurant over the past 6 months, by type, by demographics, May 2011
                                                                                                                                                      • Appendix – Consumer Spend on Wine

                                                                                                                                                          • Figure 59: Typical price people pay for a bottle of wine, by venue, by demographics May 2011
                                                                                                                                                      • Appendix – Consumer Attitudes towards Buying Wine in Supermarkets

                                                                                                                                                          • Figure 60: Most popular attitudes towards buying wine in supermarkets, by demographics May 2011
                                                                                                                                                          • Figure 61: Next most popular attitudes to buying wine in supermarkets, by demographics, May 2011
                                                                                                                                                      • Appendix – Consumer Attitudes towards Wine by Country

                                                                                                                                                          • Figure 62: Most popular attitudes towards French wine, by demographics, May 2011
                                                                                                                                                          • Figure 63: Next most popular attitudes towards French wine, by demographics, May 2011
                                                                                                                                                          • Figure 64: Other attitudes towards French wine, by demographics, May 2011
                                                                                                                                                          • Figure 65: Most popular attitudes towards Italian wine, by demographics, May 2011
                                                                                                                                                          • Figure 66: Next most popular attitudes towards Italian wine, by demographics, May 2011
                                                                                                                                                          • Figure 67: Most popular attitudes towards Spanish wine, by demographics, May 2011
                                                                                                                                                          • Figure 68: Next most popular attitudes towards Spanish wine, by demographics, May 2011
                                                                                                                                                          • Figure 69: Other attitudes towards Spanish wine, by demographics, May 2011
                                                                                                                                                          • Figure 70: Most popular attitudes towards German wine, by demographics, May 2011
                                                                                                                                                          • Figure 71: Next most popular attitudes towards German wine, by demographics, May 2011
                                                                                                                                                          • Figure 72: Most popular attitudes towards Australian wine, by demographics, May 2011
                                                                                                                                                          • Figure 73: Next most popular attitudes towards Australian wine, by demographics, May 2011
                                                                                                                                                          • Figure 74: Most popular attitudes towards US wine, by demographics, May 2011
                                                                                                                                                          • Figure 75: Next most popular attitudes towards US wine, by demographics, May 2011
                                                                                                                                                          • Figure 76: Most popular attitudes towards Chilean wine, by demographics, May 2011
                                                                                                                                                          • Figure 77: Next most popular attitudes towards Chilean wine, by demographics, May 2011
                                                                                                                                                          • Figure 78: Most popular attitudes towards South African wine, by demographics, May 2011
                                                                                                                                                          • Figure 79: Next most popular attitudes towards South African wine, by demographics, May 2011
                                                                                                                                                      • Appendix – Consumer Attitudes towards Wine Packaging

                                                                                                                                                          • Figure 80: Most popular attitudes towards wine packaging, by demographics, May 2011
                                                                                                                                                          • Figure 81: Next most popular attitudes towards wine packaging, by demographics, May 2011

                                                                                                                                                      • Accolade Wines
                                                                                                                                                      • Asda Group Ltd
                                                                                                                                                      • Bacardi & Company Limited
                                                                                                                                                      • Bank of England
                                                                                                                                                      • Banrock Station
                                                                                                                                                      • British Market Research Bureau (BMRB)
                                                                                                                                                      • British Sky Broadcasting Group plc (BSkyB)
                                                                                                                                                      • Brown-Forman
                                                                                                                                                      • Co-operative Group
                                                                                                                                                      • Constellation Europe Ltd
                                                                                                                                                      • Constellation Wines
                                                                                                                                                      • Diageo Plc
                                                                                                                                                      • Diageo UK
                                                                                                                                                      • Direct Wines Ltd
                                                                                                                                                      • E.&J. Gallo Winery
                                                                                                                                                      • First Quench Retailing
                                                                                                                                                      • Foster's Group Limited
                                                                                                                                                      • Foster's Wine Estates Americas
                                                                                                                                                      • Freeview
                                                                                                                                                      • Gfk NOP
                                                                                                                                                      • H&M Hennes & Mauritz
                                                                                                                                                      • Häagen-Dazs
                                                                                                                                                      • J Sainsbury
                                                                                                                                                      • JP Chenet
                                                                                                                                                      • Justerini & Brooks
                                                                                                                                                      • Kantar Media
                                                                                                                                                      • Lidl (UK)
                                                                                                                                                      • Lion Nathan Wine
                                                                                                                                                      • Majestic Wine Warehouse Ltd
                                                                                                                                                      • Manchester United PLC
                                                                                                                                                      • Matthew Clark plc
                                                                                                                                                      • McWilliam's Wines
                                                                                                                                                      • mmO2 plc
                                                                                                                                                      • Montana Wines Ltd
                                                                                                                                                      • Oddbins Ltd
                                                                                                                                                      • Office for National Statistics
                                                                                                                                                      • Orange plc (UK)
                                                                                                                                                      • Pernod Ricard
                                                                                                                                                      • Punch Taverns
                                                                                                                                                      • Rexam PLC
                                                                                                                                                      • Rugby Football Union
                                                                                                                                                      • T-Mobile (UK) Ltd
                                                                                                                                                      • Tesco Plc
                                                                                                                                                      • Treasury Wine Estates
                                                                                                                                                      • Virgin Media Ltd
                                                                                                                                                      • Virgin Mobile
                                                                                                                                                      • Vodafone Group Plc (UK)
                                                                                                                                                      • Wine and Spirit Association (The)
                                                                                                                                                      • Wm Morrison Supermarkets

                                                                                                                                                    You may also be interested in the following product(s)