UK consumers seek better quality as sales of wine over £7 increase





According to the latest figures from market analysts Nielsen, the average price of a 75cl bottle of wine has increased to £5.11 on the back of escalating taxation, but UK consumers are increasingly opting to spend more on better quality wines.

Despite the aforementioned tax hike, sales of premium wines costing more than £7.01 have increased 16% by volume, suggesting there is clear evidence that UK wine drinkers are demanding more from their wines.

Helen Stares, speaking on behalf of Nielsen, intimated that although the combined impact of duty and VAT had elevated the average price of wine and therefore less of it was being bought, many consumers were now drawn towards a higher price bracket.

“Just as many consumers are purchasing wine, but they are buying less of it.” Stares told the Drinks Business, “And when consumers do buy, they are trading up to higher price points.

“We’re seeing really strong growth with wines costing £7 and above, but we’re also seeing premium products grow in other areas, like vodka, gin and beer.

“With the £5 price threshold being crossed, we would expect to see volume fall, but while retailers and producers may be selling less, if it’s at a more profitable price then surely this is good news?”

In terms of the UK’s top exporters, Australian wine sales surpassed the £1billion mark ahead of second placed Italy’s £830million, which is a 5% drop on last year.

France and the United States were third and fourth respectively with sales of £765million and £686million, while Spain enjoyed the best increase from the UK’s top ten, with a 17% upturn to £538million.
 
 

Written by: Ben Moss

Ben Moss 

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