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Sparkling summer casts shadow over on trade reveals WSTA market report


The latest Wine and Spirit Trade Association market report has revealed that the long hot summer turned into a long dry drought for the on trade with total alcohol sales falling by -6% over the latest 12 weeks.


In the off trade, there was a minor summer boost with volume sales up +3% over the latest quarter thanks to an increase in sales of cider, beer and sparkling wine, however annual sales were down by -2%.   

While value sales in both the on and off-trade were up +2% for the year, this is being driven by year-on-year duty increases. Alcohol duty increased on all alcohol products by 5.2% in the 2013 Budget, except on beer, swamping the +2% increase and squeezing both consumers and the trade.

The WSTA Market Report draws on data and analysis from Nielsen, CGA Strategy and the Wilson Drinks Report. The data shows that:

Off trade

- Total volume sales were down -2% for the year but up +3% in the last 12 weeks.   

- Sparkling wine is the only category in volume growth over the short and long term, up +10% for the year and +12% in the latest 12 weeks.

- However, Champagne sales suffered the biggest category fall, down -13% in the short term and -4% over the year – a clear sign that consumers’ discretionary spending remains squeezed. 

- Cider and Perry sales enjoyed a ‘summer bounce’, up +12% for the year, although annual growth was flat.

- While spirit sales remained unchanged over the past 12 weeks, sales of liqueur were up +12%.

On trade

- Total volume sales were down -5% for the year and -6% in the short term.

- RTD sales fell by -3% over the year and by -24% in the latest 12 weeks.

- Volume sales of wine were up +1% in the short term but were flat over the year, while spirit sales were up +5% over the latest 12 weeks and up +1% for the year.

- Malt whisky was the biggest benefactor in spirit volumes up +45% in the short term.

Commenting on the latest market report WSTA Chief Executive Miles Beale said:

“While the hot weather provided a temporary and welcome boost for the off trade, on-going duty increases and squeezed consumer spending continue to damage the trade and WSTA member businesses.  

Given the record hot summer, the fall in sales in the on trade is a surprise and underlines the need for an early end to the alcohol duty escalator to provide some relief for struggling pubs, bars and restaurants.”

 

ENDS

 

For more information please contact William Boyack:

Mob:     +44 (0) 7948 329 001

Email:    [email protected]

Twitter @wstauk

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