Table of Contents
Introduction
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- Definition
- Excluded
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Forecast of UK value retail sales of wines, 2009-19
- Figure 2: Forecast of UK volume retail sales of wines, 2009-19
- Market factors
- Inflation keeps wine prices high even as tax escalator is scrapped
- Demographic changes present challenges and opportunities
- Consumer confidence is starting to recover
- Companies, brands and innovation
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- Figure 3: Value sales of top-selling still wine brands in the off-trade, 2013/14*
- Wine packaging continues to evolve
- Adspend declines, as big four grocers and leading brands reduce spend
- The consumer
- Fewer adults are buying wine than in 2013
- Sparkling wine continues to appeal in a post-recessionary landscape
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- Figure 4: Attitudes towards Champagne and sparkling wine, July 2014
- Less than a third find wine easy to choose
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- Figure 5: Perception of own-brand and branded still wines, July 2014
- Interest in smaller servings, product sampling and fruit-infused wine
- Alcohol content limits intake but interest in low-alcohol wines is low
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- Figure 6: Further attitudes towards still wine, July 2014
- What we think
Issues in the Market
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- Brands and retailers need to give people the confidence to trade up
- The facts
- The implications
- Engaging consumers who are conscious about alcohol content
- The facts
- The implications
- How can operators help consumers navigate the wine aisle?
- The facts
- The implications
Trend Application
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- Extend my Brand
- Guiding Choice
- Mintel Futures: Brand Intervention
Market Drivers
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- Key points
- Inflation keeps wine prices high even as tax escalator is scrapped
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- Figure 7: UK excise duty rates for wines, 2004-14
- Figure 8: HM Treasury estimated changes in volume consumption of alcohol over 2014-19 following changes to alcohol duty in Budget 2014, April 2014
- Wine prices are growing more quickly than the price of beer
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- Figure 9: Annual price index (RPI) of beer and wines and spirits, in the on-trade and off-trade, 2009-13
- Figure 10: Taxation on 75cl bottle of table wine from retail outlet, 2003-12
- Ban on below-cost selling replaces minimum pricing plans
- The Portman Group Code of Practice on Alcohol Sponsorship
- Influence of exchange rates
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- Figure 11: Annual average exchange rates for Sterling, 2008-14
- Consumer confidence is rising
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- Figure 12: Consumers’ financial health index, January 2009-July 2014
- Number of 18-24s set to fall
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- Figure 13: Trends in the age structure of the UK population, 2009-14 and 2014-19
- Accelerating growth predicted for over-55s
- Slower growth on the cards for 25-34s
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Packaging revamps and special editions boost fortified wine’s share of launches
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- Figure 14: New product launches within the UK still/sparkling/fortified wine market, by category, 2009-14
- Branded NPD continues to lead the UK wine market, in line with the dominance of brands in sales
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- Figure 15: Share of branded and own-label new product launches within the UK still/sparkling/fortified wine market, 2009-14
- Wine packaging continues to evolve
- More operators launch smaller-format wines
- Eco-friendly packaging continues to attract attention
- Low-calorie wines remain niche
- Appealing to younger wine drinkers – Fruit-flavoured wines
- Tesco goes premium with bag-in-box wine
- Wine producers get creative with helping consumers navigate the wine aisle
- Social commerce for the empowered customer
- Refillable wine
Market Size and Segment Performance
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- Key points
- Wine’s value growth masks a decline in volumes
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- Figure 16: UK value and volume sales of wines, at current and constant prices, 2009-19
- Figure 17: Forecast of UK value sales of wines, 2009-19
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- Figure 18: Forecast of UK volume sales of wines, 2009-19
- Segment performance: Still wine
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- Figure 19: UK value and volume sales of still wines, at current and constant prices, 2009-19
- Figure 20: Forecast of UK value sales of still wines, 2009-19
- Segment performance: Champagne and sparkling wine
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- Figure 21: UK value and volume sales of Champagne, at current and constant prices, 2009-19
- Figure 22: Forecast of UK value sales of Champagne, 2009-19
- Sparkling wine remains popular in a post-recessionary landscape
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- Figure 23: UK value and volume sales of sparkling wines, at current and constant prices, 2009-19
- Figure 24: Forecast of UK value sales of sparkling wines, 2009-19
- Segment performance: Fortified wine
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- Figure 25: UK value and volume sales of fortified wines, at current and constant prices, 2009-19
- Figure 26: Forecast of UK value sales of fortified wines, 2009-19
- The on-trade again outperforms the off-trade
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- Figure 27: UK value sales of wines in the on- and off-trade, 2012-2014
- Sparkling wine sales increase by a fifth in just two years
- Forecast methodology
Market Share
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- Key points
- Hardys revamp helps it to retain top spot
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- Figure 28: Value and volume sales of top-selling still wine brands in the off-trade, 2012/13 and 2013/14
- Mixed performances for other leading brands
- Own-label drives the bulk of the growth in sparkling
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- Figure 29: Value and volume sales of top-selling sparkling wine/Champagne brands in the off-trade, 2012/13 and 2013/14
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- Figure 30: Value and volume sales of top-selling fortified wine brands in the off-trade, 2012/13 and 2013/14
Companies and Products
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- Accolade Wines
- Overview
- Product range
- Recent activity
- Product innovation
- Brand communication and promotion
- E&J Gallo
- Overview
- Product range
- Recent activity and product innovation
- Brand communication and promotion
- Freixenet
- Overview
- Product range
- Recent activity and innovation
- Brand communication and promotion
- Moët Hennessy (Moët Hennessy Diageo)
- Overview
- Product range
- Recent activity and innovation
- Brand communication and promotion
- Percy Fox (Diageo)
- Overview
- Product range
- Product innovation
- Brand communication and promotion
- Pernod Ricard
- Overview
- Product range
- Recent activity and innovation
- Brand communication and promotion
- Symington Family Estates
- Overview
- Product range
- Recent activity and innovation
- Treasury Wine Estates (TWE)
- Overview
- Product range
- Recent activity
- Product innovation
- Brand communication and promotion
Brand Communication and Promotion
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- Key points
- Adspend declines, as big four grocers and leading brands reduce spend
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- Figure 31: Topline advertising spend in the still, sparkling and fortified wines market, 2010-14
- Adspend for sparkling wine/Champagne grows in 2013
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- Figure 32: Adspend for still, sparkling and fortified wines, by product category, 2010-14
- Red wine adspend matches previously leading white in 2013
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- Figure 33: Adspend for still, sparkling and fortified wines, by product category, by individual and multi-product still wines, 2010-13
- Direct Wines is still the biggest advertiser of still wines
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- Figure 34: Leading advertisers in the still wines market, 2010-14
- Previously flat Champagne/sparkling wine advertising gets a boost
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- Figure 35: Leading advertisers in the Champagne and sparkling wine market, 2010-14
The Consumer – Usage of Wine, Sparkling Wine and Fortified Wine
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- Key points
- Fewer adults are buying wine than in 2013
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- Figure 36: Purchase of still wines in the last six months, July 2014
- White and red wine are bought by more than two in five
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- Figure 37: Purchase of red, white and rosé wine, by gender and age, July 2014
- Boxed wine purchases remain low but the segment has growth potential
- Prosecco takes top spot in sparkling at cava’s expense
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- Figure 38: Purchase of sparkling wines in the last six months, July 2014
- Purchases of fortified and low-alcohol wines remain niche
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- Figure 39: Purchase of fortified and lower-alcohol wines, July 2014
- Purchases of lower-alcohol wines fall
- Purchase of branded and retailer-exclusive wines
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- Figure 40: Purchase of wines for in-home drinking, by brand type, July 2014
- One in five have bought retailer-exclusive wines
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- Figure 41: Purchases of retailer-exclusive wines, July 2014
The Consumer – Attitudes towards Champagne, Sparkling Wine and Fortified Wine
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- Key points
- Sweet flavour and lack of sophistication hold back fortified wines
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- Figure 42: Attitudes towards fortified wines, July 2014
- Smaller formats can combat boredom
- Fortified wines lag behind dark spirits on perceived sophistication…
- …and are seen as “old-fashioned” by one in four
- Sparkling wine enjoys a strong image as savvy choice
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- Figure 43: Attitudes towards Champagne and sparkling wine, July 2014
- Sparkling wine isn’t just for recessions
- Champagne has more of a draw among younger people
The Consumer – Perceptions of Branded and Own-brand Wines
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- Key points
- Branded wine enjoys a strong image for consistent quality and gifting
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- Figure 44: Perceptions of own-brand and branded still wines, July 2014
- Consistent quality is a key benefit in a sometimes confusing category
- 54% think standard own-labels offer value for money
- Less than a third find wine easy to choose
The Consumer – Attitudes towards Still Wine
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- Key points
- Familiar brands have scope to appeal in bag in box
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- Figure 45: Attitudes towards still wine, July 2014
- Familiar brands can combat doubts over quality of bag in box
- Smaller boxed formats should appeal to variety seekers
- Price-marked packs spark limited interest – or disinterest
- More scope to explore smaller formats
The Consumer – Further Attitudes towards Still Wine
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- Key points
- Keen interest in product trial
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- Figure 46: Further attitudes towards still wine, July 2014
- Alcohol content limits intake but interest in low-alcohol wines is low
- More scope to explore fruit-infused wines
Appendix – Market Size and Forecast
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- Figure 47: Best and worst case forecasts for the still, sparkling and fortified wine market, by value, 2014-19
- Figure 48: Best and worst case forecasts for the still, sparkling and fortified wine market, by volume, 2014-19
- Figure 49: Best and worst case forecasts for the still wine market, by value, 2014-19
- Figure 50: Best and worst case forecasts for the still wine market, by volume, 2014-19
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- Figure 51: Best and worst case forecasts for the sparkling wine market, by value, 2014-19
- Figure 52: Best and worst case forecasts for the sparkling wine market, by volume, 2014-19
- Figure 53: Best and worst case forecasts for the Champagne market, by value, 2014-19
- Figure 54: Best and worst case forecasts for the Champagne market, by volume, 2014-19
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- Figure 55: Best and worst case forecasts for the fortified wine market, by value, 2014-19
- Figure 56: Best and worst case forecasts for the fortified wine market, by volume, 2014-19
- Figure 57: UK volume sales of wines in the on- and off-trade, 2012-14
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