Consumers cut wine spend as downturn bites

Published: 30 October, 2008

Consumers are spending less on wine and are letting price promotions govern their choices, according to a major survey of wine drinkers by the Wine and Spirit Trade Association (WSTA).

Consumers are spending less on wine and are letting price promotions govern their choices, according to a major survey of wine drinkers by the Wine and Spirit Trade Association (WSTA).

The Wine Intelligence poll of 1,000 regular wine drinkers shows a marked shift in spend away from the £5 to £6 range and a corresponding increase in those spending less than £5, particularly in the £4 to £5 range.

Wine drinkers now also rate promotions as the number one factor in deciding what wine to buy, a sign that the credit crunch is starting to take its toll on consumer spending.

Pubs and restaurants have also seen a sharp increase in the numbers buying wines priced below £12 and a fall in those spending more.

The WSTA says that the survey also challenges industry assumptions about the impact of brands in the on-trade, with the vast majority of wine drinkers saying they would consider buying well-known brands, even in a formal restaurant setting.

Commenting on the survey results, Jeremy Beadles, chief executive of the WSTA, said: "These figures testify to the harsh reality facing millions of consumers with budgets squeezed and increasing pressure to reduce spending where possible.

"The survey reinforces our view that continuing steps to push alcohol prices up using tax as a blunt weapon are wholly inappropriate.

"Equally the survey suggests we in the trade may have things to learn about spending patterns in the on-trade, with brands more readily accepted than previously thought."

The key findings of the survey are:

? Numbers typically spending £5 to £6 in shops are down by almost a quarter (22% to 17%) over past 3 months.

? Typical off-trade spend for all occasions is down (everyday wine - down 12p a bottle; special occasions down 20p to 30p a bottle).

? Numbers in on-trade buying wine priced below £12 are up from 48% to 55%.

? 72% of wine drinkers rate promotions as the key factor when buying wine, putting it just ahead of grape variety for the first time.

? 70% of wine drinkers would consider buying well known brands in a formal restaurant (85% in casual dining restaurants; 88% in bars/pubs).