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Industry looks to Christmas to restore cheer


The wine and spirit industry is looking for Christmas sales to provide it a boost following another tough year of trading. The latest Wine and Spirit Trade Association market report shows sales continue to decline in both the on and off trade up to November 2013.

Volume sales in the on trade were down -5%, while off trade sales were down -1%. Values in the on trade remained flat, while the off trade fared a little better with +3% growth.

The report shows:

Off trade           

- Total volume sales in the off trade were down -1% for the year and -1% for the latest 12 weeks, while values increased by +3% in the short and long term as a result of the duty escalator.

- Wine sales were down -3% for the year and -5% for the latest 12 weeks.

- Sparkling wine (+10%) and cider (+1%) were the only categories to record year on year growth.

- Recorded volume sales were down for both wine and spirits for the year and in the past quarter. Champagne, fortified wines and RTDs were also down over the short and long term, while sparkling wine was the only category in positive volume growth.

On trade

- Beer continues to struggle. Despite the cut in duty at the budget in March, sales were down -6% for the year and -8% over the past 12 weeks.

- Sales of RTDs continue to decline heavily, falling -27% in the last 12 weeks and -17% over the year as consumers switched to flavoured spirits products, such as tequila and whisky infused beers.

- Sparkling wine and Champagne experienced strong growth over the year, with sparkling wine having a particularly positive 12 weeks up +16%.

- Spirits values enjoyed a moderate +1% rise in sales with price increases being driven primarily by the 5.3% increase in duty.

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

“Overall, wine and spirits businesses continue to operate in a tough trading environment with the duty escalator pushing up prices for hard pressed consumers.

We are hoping the Christmas trading period will buck last year's trend when we saw big declines in both the on and off trade. With the boom in innovative new product ranges and growing consumer confidence, a strong final few months would provide a much needed boost to the trade.

ENDs

Notes to media

The Market Report is brought together by the WSTA using Nielsen, CGA Strategy and Wilson Drinks Report Data.

For more information please contact William Boyack:

Tel: +44 (0) 20 7089 3876

Mob: +44 (0) 7948 329 001

Email: [email protected]


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