Wine Retailing - UK - June 2007

Table of Contents

• Issues in the Market
• Main themes
• Definitions
• Abbreviations
• Market in Brief
• Wine market growth slowing
• Brits are discount drinkers
• The great Australian Wine Lake
• What' s happening with price
• Riding the wave of a strong economic climate
• It' s a lifestyle thing
• Responsible drinking
• They may drink more, but they don' t know more
• The potential for growth
• Not confused but possibly blinkered
• Its all in the name regardless of origin
• Quality a problem for major players
• How much consumers buy
• Who buys where
• Threshers thrashing around? But specialists can survive
• Virtual drinking on the increase
• The ethical consumer
• The future
• Industry Insight
• Key points:
• It' s tough out there
• The future' s pink and white
• A cast of hundreds but its not all white
• It' s the real deal
• The new deal
• Magic numbers still exist
• Making it special everyday
• Brands have a role but know their place
• Choosing the winners
• Supermarket special
• Healthy drinking
• Binge drinking
• Direct to market
• Fairtrade flourishing
• Organic growth
• The future is going to be green
• Discounting still on the agenda
• Giving wine a profile
• Internal Market Environment
• Trends in wine drinking
  • Figure 1: Trends in bottled wine, wine in a box and champagne drinking and in-home consumption, 2002-06
  • Figure 2: Penetration of bottled wine drinking and in-home drinking of bottled wine, by gender, age, social grade and region, 2006
• Trends in country of origin
  • Figure 3: Trends in country or origin for bottled wine, 2002-06
• Trends in pricing
  • Figure 4: Trends in amount paid for bottled wine, 2002-06
• Discount drinking
  • Figure 5: Trends in the price of off-sales prices of alcoholic beverages relative to all items, 1996-2006
• Social and health issues
• Binge drinking
  • Figure 6: Per capita volume consumption of alcoholic drinks among the UK adult population (18+), by type, 2001-06
• UK Government action on binge drinking
• EU reform
• Diets and healthy eating
  • Figure 7: Agreement with statement ' I watch what I drink because of constant coverage in the media about ' health' issues' , July 2006
  • Figure 8: Agreement with statement ' I usually try to order drinks that have fewer calories in them (eg wine rather than beer)' , July 2006
• Health issues
• Seasonal peaks
• Conflict between premium wine and mass (retail) markets
• Are brands a barrier to premium sales?
• Eco, ethical, environmental
• Regulatory framework -- Excise duties
  • Figure 9: Trends in excise duty rates for beer, spirits and wine, 2000-06
• Channel-hopping factor fades
• Under-age drinking continues to be an issue
  • Figure 10: Percentages of supermarkets selling alcohol to minors, November/December 2005 and May/June 2006
• Broader Market Environment
• Economy
• PDI and consumer spending
  • Figure 11: Trends in PDI and consumer expenditure, 2002-12
• Employment
  • Figure 12: UK workforce and employment by gender, 2002-12
• Population trends
• Age of population
  • Figure 13: Trends in UK population by age, 2002-12
  • Figure 14: Average weekly expenditure on wines brought home (incl. fortified and sparkling wines), 2003/04 and 2005/06
• Affluence on the up
  • Figure 15: Forecast adult population trends, by socio-economic group, 2002-12
• Lifestyle trends
  • Figure 16: Agreement with lifestyle statements on drinking, 1996-2006
  • Figure 17: Agreement with the statement ' I enjoy entertaining people at home' , 2001-05
• Market in Context
• Key points:
• Retail sales comparison
  • Figure 18: All sales at Food stores, non-specialised food stores and alcoholic drink stores, 2000-06
• Market for alcoholic drink
  • Figure 19: UK volume sales of alcoholic drinks, by type, 2001-06
  • Figure 20: UK value sales of alcoholic drinks, by type, 2001-06
• On and off-trade sales of wine
  • Figure 21: Consumer expenditure on still wine*, on- and off-trade, 2002-07
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points:
• Wine expenditure in off-trade
  • Figure 22: Market size and forecast of still wine in the off-trade*, 2002-12
• Factors incorporated in the forecast
• Market trends
• The future
• Where They Buy Wine and How Much They Buy
• Key findings:
• How much wine do we buy?
  • Figure 23: Number of bottles of wine bought a month, March 2007
  • Figure 24: Number of bottles of wine bought a month, March 2007
• Where do consumers shop for wine?
  • Figure 25: Trends in primary store at which wine is purchased, March 2000, April 2002, May 2005 and March 2007
  • Figure 26: Primary and secondary shopping for wine, March 2007
  • Figure 27: Market positioning of outlets used for buying wine, by average age and affluence, March 2007
  • Figure 28: Outlets used for purchasing wine, by gender, age and socio-economic group, March 2007
  • Figure 29: Consumers buying wine from where they buy their groceries, by supermarket used, March 2007
  • Figure 30: Outlets used for purchasing wine, by gender, age and socio-economic group, March 2007
  • Figure 31: Number of bottles of wine bought a month, by outlets used for purchasing wine, March 2007
• Number of outlets used for wine buying
  • Figure 32: Number of outlets used for buying wine, by outlets used for buying wine, March 2007
• Where They Buy Wine and How Much They Buy -- Detailed Consumer Demographics
  • Figure 33: Number of bottles of wine bought a month, by lifestage, Mintel' s Special Groups, working status, region, ACORN category, technology usage, Internet usage, newspaper readership, commercial TV viewing, TV received and supermarket used, March 2007
  • Figure 34: Outlets used for purchasing wine, by lifestage, Mintel' s Special Groups, working status, region, ACORN category, technology usage, Internet usage, newspaper readership, commercial TV viewing, TV received and supermarket used, March 2007
  • Figure 35: Outlets used for purchasing wine, by lifestage, Mintel' s Special Groups, working status, region, ACORN category, technology usage, Internet usage, newspaper readership, commercial TV viewing, TV received and supermarket used, March 2007
• Channels of Distribution
• Key points:
• Number of off-licences
  • Figure 59: Number of retail premises with off-licences, 1998-2004
  • Figure 60: Retail outlets licensed to sell alcohol in England and Wales, by type of premises, 2001-04
  • Figure 61: Number of enterprises of non-specialised food and drinks stores and specialised alcoholic and other beverages stores, UK, 2001-05
• Sales via on- and off-trade
  • Figure 62: UK volume sales of wine*, by distribution channel, 2001-06
• Retail Competitor Analysis
• Key points:
• Retail market shares
  • Figure 72: Estimated retail market shares of the wine market, 2003-07
• Retailer comparison
  • Figure 73: Comparison of wine retailers, 2007
• Future prospects
• Retailer Profiles
• Specialists
• Thresher Group
  • Figure 74: Thresher Group, financial performance, 2002-06
• Bargain Booze
  • Figure 75: Bargain Booze Ltd, financial performance, 2001-05
• Majestic Wine Warehouses
  • Figure 76: Majestic Wine, financial performance, 2002-06
• Oddbins
  • Figure 77: Oddbins, financial performance, 2002-05
• Wine Cellar
• Non-specialists
• Tesco
  • Figure 78: Tesco Plc, financial performance, 2002-07
• Sainsbury' s
  • Figure 79: Sainsbury' s Supermarkets, financial performance, 2003-07
• Asda Stores (Wal-Mart Europe)
  • Figure 80: Asda Stores Ltd, financial performance, 2001-05
• Morrisons
  • Figure 81: Wm. Morrison Group, financial performance, 2003-07
• Marks & Spencer
  • Figure 82: Marks & Spencer (food), financial performance, 2002-07
• Somerfield
  • Figure 83: Somerfield, financial performance, 2001-06
• Waitrose
  • Figure 84: Waitrose Ltd, financial performance, 2002-06
• Co-operative Group
  • Figure 85: Co-operative group (Food), financial performance, 2002-06
• Discount multiple retailers
• Aldi Stores Ltd (UK)
  • Figure 86: Aldi Stores Ltd (UK), financial performance, 2001-05
• Mail order and online sales
• Direct Wines Ltd
  • Figure 87: Direct Wines Ltd, financial performance, 202-06
• Retail Advertising and Promotion
• Key points:
  • Figure 88: Main media advertising expenditure on wine and sparking wine, by leading wine reatailers, 2002-06