Major wine brands see double digit growth, says Mintel

By Gemma McKenna

Published: 07 November, 2014

Hardys, Lindeman's, Kumala and Casillero del Diablo have all posted double-digit value growth in a flat market, according to the latest wine report from Mintel.

The figures, based on Mintel analysis of IRI data for the 52 weeks to July 19, 2014, showed Accolade Wines' owned-brand Hardys extended its lead in the still wines market in the past year, reaching sales of £289 million.

Mintel Value sales of top-selling still wine brands in the off-trade, 2013/14

In the "fragmented" sparkling wine segment, even leading brands only hold small shares of under 5% of total value and volume sales. Own label has been driving the bulk of growth in this category.

Where fortified wines are concerned, Buckfast and Taylors posted double-digit value growth over the past year, while value sales across the entire category remained flat, with volumes declining by 4%, as with still wine.

Meanwhile the report also showed that advertising spend on wine continues to decline - the downward trend started in 2012 - it was a steady £33 million in the previous two years. The report attributes the falling spend to the big four grocers and leading brands, including Jacob's Creek, Blossom Hill and Brancott Estate, cutting back.

Still wine accounted for 77% of the annual ad spend in 2013, with campaigns covering a range of wines the most popular. Less than 5% of still wine advertising spend was on individual varieties in 2013, the report said.

Spending on Champagne and sparkling wine advertising has grown every year since 2010, mainly thanks to multi-product wine and Champagne campaigns by Tesco, Waitrose and Sainsbury's. 2013 saw faster growth as Aldi held a Champagne campaign. Overall Champagne accounts for three quarters of the spend in the segment, with just one quarter coming from sparkling wine.

The report also states that wine's value growth, up to now bolstered by duty and price increases, is likely to slow in the next five years as consumer concerns over costs, alcohol and sugar content grow.

Mintel's Still, Sparkling and Fortified Wine in the UK report is available here, priced £1,750. It uses IRI and Mintel data.

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