UK wine drinkers are 'discount junkies', says research

Mintel, deep discounting, supermarkets, 3 for £10, research, wine, WSTA, Wine Intelligence, duty, VAT, tax News Wine News http://decanter.media.ipcdigital.co.uk/11150/0000013e5/b1c1_orh100000w160/supermarket.jpg http://decanter.media.ipcdigital.co.uk/11150/0000013e5/431b/supermarket.jpg
  • Friday 5 August 2011

The UK has become a nation of wine-drinking 'discount junkies', fuelled by constant price promoting in supermarkets, a new survey claims.

supermarket

The latest report from market research specialists Mintel has found that 55% of all Britons who purchase wine to drink at home buy ‘depending on which has the best discount’.

John Forsyth, senior drinks analyst at Mintel, says ‘The discounting strategy of major multiples may be controversial but it is a key purchase driver in such a fragmented market place.’

Deep discounting continues in the UK including three bottles for £10 in some supermarkets despite duty standing at £1.81 per bottle excluding a further 20% sales tax (VAT).

However, the rise of promotions appears to be stifling experimentation according to a Wine Intelligence survey for the UK’s Wine and Spirit Trade Association earlier this year. It found the proportion of UK consumers who were adventurous in their wine buying habits had fallen in the same period as promotional offer increased in importance.

Younger consumers are particularly influenced by price promotions, says Mintel. Forsyth added they ‘use discounting more as an aid to wine buying – a way to filter out the noise.’ While older consumers are more confident in their wine buying, they spend less per bottle than their younger peers.

Discussing deep discounting in UK supermarkets, Decanter editor Guy Woodward told BBC Radio 4's The Today programme: 'Just up your wine buy by a couple of pounds and the difference is huge. It's just pure economics.' Listen to the full interview here.


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