Low alcohol wines dogged by lack of awareness and poor quality perceptions

By Gemma McKenna

Published: 22 September, 2014

France and the USA are the most attractive markets for lower alcohol wines, although others show great potential, says a new report from Wine Intelligence.

However, overall there is still a distinct lack of awareness about lower alcohol wines and a perception that they are poor quality, the report states.

Low alcohol Consumers don't have great awareness of low alcohol winesThe category is being held back by perceptions of low quality and a lack of understanding, says Wine Intelligence.

Four out of 10 US wine drinkers - or 38 million people - currently buy wines under 10.5% abv, while 12 million French wine drinkers now buy lower alcohol wines, up 8% since 2012.

Germany has also shown increases in the number of active buyers and potential buyers, especially in the 9% to 10.5% abv category - which corresponds to domestic wine production.

The report singles out Canada as showing least potential for lower alcohol wines, despite overall growth in the wine category. The report suggests that the lower alcohol category is losing traction due to a lack of awareness and poor quality perceptions.

Across eight markets analysed, the number of buyers stands at 85 million. But the category is still niche - given lower alcohol wines account for only occasional purchases. They also present challenges due to the lack of a unified legal definition and changing legislation and duty rates across the markets they are sold in.

Richard Halstead, chief operating officer of Wine Intelligence, said: "Lack of awareness and low quality perceptions also feature highly as barriers in many markets, which indicates that there is still work to be done both in terms of product development and consumer education if lower alcohol is going to grow significantly".

Harpers Low-Alcohol Wine Report, published in July, shows that the UK wine trade has yet to crack the low-alcohol wine category.

Despite increased shelf space and apparent consumer demand, sales are disappointing, the report states. Acclaimed drinks journalist, Nigel Huddleston, looks at how the trade can grow the category in the future. Subscribers can download the report here.

Wine Intelligence Lower Alcohol Wines: A Multi-Market Perspective 2014 is available from the Wine Intelligence Reports Shop.

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