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Convenience sector growth outpaces the market

Published:  02 June, 2016

Within the convenience sector wine sales's growth is outpacing the rest of the wine market and for those suppliers, particularly of New World wines, and retailers with identifiable brands and new formats, the opportunities to capitalise on the sector abound.

According to recent Nielsen figures, while the total still wine category, which is valued at £5.5 billion in the UK off-trade, declined by 0.7% year-on-year, the total convenience sector had 2.0% volume growth and 2.4% value growth for the same period (MAT 23/04/2016).

New world wines dominate the convenience sector and account for 68.2% of total value sales.  Australian and American have done phenomenally well in the impulse channel and combined have 40% of the market share. Australian wines saw 7.2% value growth in the channel, while Chile was up 8.3%, New Zealand increased 10.5% and Argentina saw an incredible 27.8% increase.

Having identifiable brands have also proved successful for retailers and resonate with consumers. Lead brands make up close to 50% of all value sales and had growth of 2.4% YOY.  The top three brands, which are Hardys, Blossom Hill and Echo Falls, make up 20% of the total value of wines within channel.

Accolade Wines general manager, Robert Harrison said: "Well recognised brands such as Hardys and Echo Falls, make up two of the three top still wine brands within the convenience sector. These labels play a key role, by making the purchasing decision easier, which perfectly aligns with the 'ease of shop' trend within convenience."

Mini formats are gaining traction in the convenience sector as well with YOY value growth of 8.6%.  Minis currently make up a very small percentage of the value of wines in the the convenience market (1.6%), but is an area that is poised for growth.