Wine and spirit sales volumes down, says WSTA report

Published: 05 December, 2012

Wine and spirit sales volumes have fallen in the last year, according to the Wine and Spirit Trade Association Market Report.

Total alcohol sales fell 2% in the off trade and 3% in the on-trade.

But sparkling wine in the off-trade and sales of cider in bars and restaurants bucked the trend - up 5% over the past 12 months.

Meanwhile sales of more expensive wines are growing - all price bands over £7 per bottle are showing double-digit growth while wines under
£4 continue to decline.

In the last year off-trade sales of wine declined by 2% in volume and spirits declined by 3%, according to the report. On-trade sales of RTDs were up 15% in volume the last twelve weeks and 3% in the twelve months to November 2012. During the same period, off-trade Champagne sales were down 9%, but up 13% in the on trade.

Inflation on wines and spirits was 2.4% and 5.9% respectively between October 2011 and October 2012. Overall inflation over the same period was 3.6%.

WSTA chief executive Miles Beale said: "Overall, the latest market report shows that consumers are continuing to tighten their belts and shop around for the best value in these tough economic times.

"While it is encouraging to see category growth in some areas, market conditions suggest that it remains a challenging time for both the industry and consumers.

"Given these challenging economic conditions the government should think carefully before adding further pressure on the trade, as continuing with the duty escalator and the introduction of minimum unit pricing would do."

The WSTA's Market Report draws on data from Nielsen, CGA Strategy and Wilson Drinks Report.

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