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Liberty Wines On-trade report: Understanding the on-trade

Published:  02 September, 2016

Despite the uncertain times we face Liberty Wines' Premium On-trade Report 2016 report shows insight into where the opportunities may lie for operators.

This was the third report that Liberty has produced using Liberty's own data and CGA strategy data, but the first time the company commissioned independent research from 1,000 AB1 wine-drinking consumers.

"The report confirms many of the trends that we are already seeing, but if we were waiting for the data to turn up then we would be slightly behind the curve. Our wine buyers need to be out there finding what our customers are going to be looking for when they are ready to evolve their lists. We need to keep our customers happy and in turn keep their customers happy," said managing director of Liberty Wines David Gleave.

The findings in the report show that while the overall while wine sales are declining, premium wine sales in the on-trade is thriving. Across the UK volume sales of wine were down 2.5% and value sales down 0.5%, but the premium on-trade saw volume increase 6.3% and value jump 9.4%.

The independent research that came from consumers directly indicates that more by the glass options may help to get to consumers to trade up or try something different, as would staff recommendations. Thirty-nine per cent of consumers said that more by the glass options would encourage exploration, while 40% of consumers, particularly younger consumers, would encourage them to try something new.

It is information like this, which the report is full of, that can help on-trade operators make more well-informed decisions about what they decide to list.  That is good for their business and this good for Liberty Wines business as well.

For Gleave it is a way for operators to help combat the challenging times.  He said: "We can't ignore that we are looking at a period of significant economic uncertainty ahead. This means the industry needs to up its game and adjust to the changing premium on-trade environment. We are faced with a significantly weakened pound, which will have an impact on wine prices.  It is therefore crucial for us to embrace changes, including the rise in casual dining as well as the changing palates and demands of younger consumers who openly state they look for guidance when ordering wines."

For more insights from the Liberty Wines' Premium On-Trade 2016 report take a look in the September edition of Harpers.