Volume wine sales down but value sales are up

The latest Wine and Spirit Trade Association report shows that the overall volume sales of wine in the UK is down by 2% year on year. However, value performance has increased due to increases in duty and VAT. Shoppers are increasingly feeling the squeeze and switching to cheaper brands, seeking other stores and even trading down to smaller bottle sizes. Sparkling wine and Prosecco are benefiting as drinkers seek out a cheaper alternatives to Champagne.

Australia maintains the lead in terms of volume sales but their lead is narrowing as volume and value sales drop. Wines from Italy and Spain are gaining momentum fast with around 15% volume growth and New Zealand wines are also showing continued volume growth, up 7%.

Wine is still being drunk predominately at home or at friends' houses by older drinkers aged 35+, more likely to be those with families who tend to go out less often. Whilst sales of wines priced at £4-£5 are flat year-on-year, wines priced over £5 a bottle are in growth, accounting for 32% of volume sales compared to 25% a year ago. The economy is also hitting fine wine sales, although the fine wine index continues to outperform the FTSE 100.