Decanter World Wine AwardsUK wine drinkers are 'discount junkies', says research
- Friday 5 August 2011
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.
Have your say!
Paul
August 10 02:14
The only way discounted wines work is the fact the supplying wineries have been screwing the growers for way to long , International wineries are for ever down playing how bad the markets are so then they push the price of fruit down to levels that do not cover the cost of growing it and we wonder why so many growers are leaving the industry, just look at australia and you will see the just how many vineyards have been grubbed and are up for sale and not selling due to such low returns on fruit, wineries are not offering contracts, banks are de-valueing properties , calling in loans, wiping out growers at a rate never seen before, if the wine industry continues at the rate it is the excess stocks available in bulk will dry up and there is your answer to cheap discounted wine , there will be none, growers unite and stand your ground and dont except below cost prices for your fruit and push the price back up, united you stand, alone you pay the ultimite price and that is you keep the big boys moving forward with cheap wine for the supermarkets and struggle to pay your bills whilst they increase there bottom line and tell you the market is down , NOW IS THE TIME TO LIFT FRUIT PRICES AND BRING THE INDUSTRY BACK TO A LEVEL PLAYING FIELD.
Tom Lewis
August 08 18:32
Many interesting ideas here, but I'm not sure I fully agree with the idea that the increase in prices from sub-£5 to around £7 translates into a linear improvement in quality necessarily.
See here for more details:
http://cambridgewineblogger.blogspot.com/2011/08/on-choice.html
L.E. Scales
August 08 10:58
55% hardly represents "UK Wine Drinkers" as a whole as implied by the rather insulting headline. Why not report that "45% are discerning about what they drink". That sounds like good news to me!
Andy Whiteman
August 08 10:43
Spot on - it seems we have become a nation addicted to discounts - not just on wine but on food in supermarkets/shops, eating out - everything!
When you see McDonald's being an official restaurant partner for the Olympics you just get the picture.
How can anyone expect to get a decent bottle of wine @ 3 for £10.00 - a joke!