Lower-alcohol wines and 50cl sizes are inevitable, says Brand Phoenix

Published: 27 September, 2010

By Graham Holter

The wine trade will increasingly gravitate towards 50cl sizes and lower-alcohol styles in order to hit popular price points, according to one major supplier.

Steve Barton, director of First Cape supplier Brand Phoenix, says the trend is inevitable as the trade faces an "inflationary cocktail" of duty and VAT rises, and unfavourable exchange rate movements.

The First Cape range includes Café Collection, a 5.5% abv wine. "There is a huge consumer drive to lighter styles of just about everything," Barton said. "The wine trade is probably a little bit slow out of the traps."

Barton believes wine volumes could fall by 6% to 9% in the next 12 to 18 months because "market forces are as complex as they've ever been" and consumers are "not wanting to spend money on things that are not essential".

He said that the future of the big-volume end of the wine market would be driven by lighter and smaller-pack products which could slot into promotions like three-for-£10.

Booker has recently seen sales success with 5.5% abv JP Chenet Light, and 8% abv Sandy Cove British wine.

Rob Hart, Booker's wine category manager, also reported increased off-trade interest in single-serve wine formats, and smaller bottle sizes, after some years of success among on-trade customers.

"Many retailers are nervous about trading the consumer down, but the fact is if they don't offer these products that consumer is going to pass by and purchase elsewhere, the evidence would suggest."

Alistair Morrell, managing director of Wheelbarrow Wines and a former Asda buyer, believes such products will only succeed if they are backed by strong brands.

"I don't think lower alcohol is enough on its own," he said. "It's just commodity trading, really. People will figure out for themselves if they're getting value for money."

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