Jago: sub-£5 wine “increasingly difficult”

6th July, 2011 by Lucy Shaw

Dan Jago, Tesco’s category director for beers, wines and spirits, has admitted that the days of being able to buy wine in the UK for under £5 are coming to an end.

Despite an unabating consumer appetite for discounts, Jago admitted that Tesco hadn’t run a “3 for £10” promotion for over a year as the model was “unsustainable” and that the average bottle price at Tesco had gone up to £4.84.

Speaking exclusively to the drinks business at the Tesco summer tasting at the Millbank Tower yesterday, Jago said: “It’s increasingly difficult to get wine below £5. We’ve got a terrific range of wines under £5, but it’s getting smaller and smaller, which is a good thing.”

Jago however, spoke out in defence of wine promotions, saying….

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3 Responses to “Jago: sub-£5 wine “increasingly difficult””

  1. Tom Tracey says:

    I have recently moved back to the UK from Switzerland, and I am appalled at the cost of wine here compared to Switzerland and neighbouring France. From 50 to 100% more in the UK for exactly the same wines and brands.

    While the iniquitous tax and duty here is horrendous, that is not the total answer on the difference in price. There is also much more choice available – and more competition.

  2. Felicity Trumpton says:

    It’s because retailers are greedy and want to make 30% margins so they can return huge profits to their shareholders. This means either squeezing suppliers or bumping prices up to the consumer.

  3. Freddie Cobb says:

    I have just returned from a year studying in France, and I have to admit that this may be correct with the wines in the lower price bracket, and for this I believe the difference is largely due to duty. However, for the higher priced wines and champagnes, the UK prices are very competitive in the UK, especially on the French stuff.

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