No sign of slowdown in sparkling wine growth
Sparkling wine sales are showing no signs of slowing down - volumes rocketed 20% in the second quarter of 2014.
According to figures from the Wine & Spirits Trade Association's Market Report, in the 12 months to April 26, 2014, volumes of sparkling wine sold grew by 10% to 535,000 hectolitres, representing a 17% boost in value to £486 million in the off-trade. The average price is £9.08 per litre, an increase of 6%.
Sparkling wine has enjoyed stellar volume growth in last few yearsSource: WSTA Market report Q2 2014The WSTA market report shows that sparkling wine has grown 20% in the off-trade by volume in the last quarter. Its upward trajectory has been happening since at least 2012. (Figures are as compared to same period of previous year).
Sparkling wine is way ahead of the rest of the drinks category, with only cider and perry coming close with an increase of 6%, thanks to a plethora of new cider products coming on the market.
More recently, according to off-trade figures compiled by the IRI for Wilson Drinks Report's World Cup analysis, sparkling wine (this time inclusive of Champagne) jumped by 25% in the first week of the tournament, 18% in the second and 13% in the third.
As sparkling wine sales continue to surge ahead, mostly at the expense of Champagne, firms look to seek out producers and new areas look to spread the word. Recently Italy's Franciacorta region, renowned for its sparkling wines, announced it was looking to ramp up awareness in the UK market with a series of masterclasses and tastings.
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The WSTA market report shows that sparkling wine has grown 20% in the off-trade by volume in the last quarter. Its upward trajectory has been happening since at least 2012. (Figures are as compared to same period of previous year).WSTA Market report Q2 2014 |
But Prosecco is still the big winner, and consumers are choosing the Italian sparkler over its Spanish rival cava, even though cava is £1 cheaper than Prosecco on average, according to Nielsen analyst Natasha Kendall, speaking at London Wine Fair last month. A number of UK agencies, including Stevens Garnier, are on the look-out for a Prosecco brand to add to their portfolios.
Research conducted by Champagne house Lanson showed that while off-trade retailer and own-label Champagne brands have fallen by 16% in value, overall Champagne is less dramatically affected by the rise of Prosecco, with Champagne sales down 3% by volume, while value held steady. Branded Champagnes are performing well, with key brands showing growth of 8.6%, while softer brands have grown 16%, said the report.
Major brands are well aware of Prosecco's good fortune - its sales rocketed by 54.6% by value in 2013, according to Lanson's report, with retailer and own-label Prosecco brands growing by 90% as big groups look to move their range into more affordable bubbles away from Champagne. The WSTA's report for the past 12 months put Champagne at an average price of £26.05 in the off-trade.
Speaking to Harpers.co.uk at the launch of its report, managing director Paul Beavis said: "You could argue the positive side that bubbles are doing well - there are positives to take from that. People are trading into the sparkling category, but when it's sub-divided it shows strengths and weaknesses."
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