Wine sales lag in on-trade, says new report

The biggest shocker was wine sales in food-led pubs, down 3.4 per cent when compared to total alcohol sales, which were up by 6.7 per cent. This time last year, food-led pub wine sales were up 9.4 per cent.

Such a dramatic decline in wine sales in food-led pubs, is attributed to a number of factors, claims Accolade.

Competition from other alcoholic products on the bar – such as fruit ciders, easier drinking ales and cocktails – is a key factor. There is also an issue with price increases above the level of duty, particularly with unknown wine brands.

Accolade Wines is a leading supplier of high profile wine brands, such as Echo Falls, Banrock Station, Kumala and Robert Mondavi.

The company’s European commercial general manager, James Lousada, commented that the on-trade is a difficult environment to get right where wine is concerned, adding that the report shows that consumers want a balanced mix between brands and non-branded wines.

“It appears that the on-trade has shifted too far towards non-brand,” he said.
Accolade believes that on-trade wine sales can be revived if publicans learn to understand the consumer and move away from traditional ‘by country’ wine lists. Instead, they should adopt descriptors such as ‘soft and easy,’ ‘big and fruity’ and ‘robust’.

Ian Anderson, Accolade’s category development director, said:

“Marketing unbranded wines ‘by country’ is turning people away.”

A spokesman for the Wine & Spirit Trade Association, of which Accolade is a member, said that the decline in on-trade wine sales was more likely to be a reflection on the economic climate and the fact that more people were eating and drinking wine at home to avoid the hefty mark-up charged in the on-trade.

The WineNation 2011 Report reveals that the average price of a bottle of wine in the off-trade is set to rise over £5 for the first time by July 2012.