Wine sales down as tax increases bite

13 December 2011

Volume sales of wine are continuing to fall and the pace of decline has increased over the last 12 weeks, according to the latest WSTA Market Report.  What's more, any increase in the value of wine sales is largely down to tax increases.

The latest figures show shop sales of wine down 3% by volume in the 12 months to 26 November and down 4% over the last quarter.  Shop sales of wine are up 3% for the year but analysis attributes this substantially to the combined impact of increases in excise duty and VAT.
The WSTA's Market Report draws on data from leading independent sources including Nielsen and CGA Strategy, with analysis by Tim Wilson, author of the Wilson Drinks Report.

Elsewhere in the off-trade cider (+3% volume, +11% value) and sparkling wine (+2% volume, +7% value) continue to report strong growth figures and gin (+3% volume, +9% value) and vodka (+3% volume, +10% value) also performed well.

In pubs, clubs and restaurants most categories saw volumes decline in the year to 1 October, yet all except RTDs saw some increase in value, though partly driven by the impact of duty and VAT increases.

While wine sales for the year were down 6% in volume, sales value increased by 9%.  Sparkling wines saw volumes up by 2% and value up by 8%.

While on-trade spirits volumes were down overall, liqueurs (+5% volume, +10% value) and tequila (+6% volume, +12% value) emerged as the strongest performers.

WSTA Chief Executive Jeremy Beadles said:  "All the signs point to consumers cutting back on spending and any growth in value is largely down to the impact of this year's tax increases.

"While some categories, including sparkling wine, are bucking the trend, the prospect of a further above inflation tax increase in March, amidst gloomy economic forecasts, offers little joy for consumers or the trade."


Notes to editors

The WSTA Market Report is available to WSTA Members.  

The WSTA is the UK organisation for the wine and spirit industry representing over 340 companies producing, importing, transporting and selling wines and spirits.
We campaign to promote the industry's interests with governments at home and abroad.
We work with our members to promote the responsible production, marketing and sale of alcohol.

For more information please contact Gavin Partington:
Tel:  +44 (0) 20 7089 3876
Mob:  +44 (0) 7966 014058
Email: [email protected] 

Twitter @wstauk

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