UK wine sales plummet as tax hikes hit trade

13th December, 2011 by Alan Lodge

Volume sales of wine are continuing to fall in the UK and the pace of decline has increased over the last 12 weeks, according to latest figures.

The WSTA Market Report also says that any increase in the value of wine sales is largely down to tax increases.

The new figures show shop sales of wine were down 3% by volume in the 12 months to 26 November and down 4% over the last quarter.

Off-trade value sales are up 3% for the year but analysis attributes this substantially to the combined impact of increases in excise duty and VAT.

There were, however, some notably good performers in the off-trade, with cider adding 3% in volume and 11% in value terms over the year, while sparkling wine grew volumes by 2% and value by 7%.

In the spirits sector, gin added 3% in volume and 9% value, while vodka also added 3% to its volume sales and 10% in value terms.

The picture is not quite so positive in the on-trade, where most categories saw volumes decline in the year to 1 October.

Despite this, every category except RTDs – which continued their long-term decline – saw value increases, though again this has been attributed to the impact of duty and VAT rises.

On-trade wine sales were down 6% in volume but added 9% in value, while sparkling wine volumes rose 2% and value was up by 8%.

As for on-trade spirits, though total volumes were down overall, both liqueurs and Tequila emerged as the strongest performers. Liqueurs put on 5% in volume and 10% value, while Tequila added 6% volume and 12% value.

WSTA chief executive Jeremy Beadles said:  “All the signs point to consumers cutting back on spending and any growth in value is largely down to the impact of this year’s tax increases.

“While some categories, including sparkling wine, are bucking the trend, the prospect of a further above inflation tax increase in March, amidst gloomy economic forecasts, offers little joy for consumers or the trade.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

UK Brand Ambassador - That Boutique-y Gin Company

That Boutique-y Gin Company
Tunbridge Wells, Kent, UK

Senior National Account Manager – Grocery (Craft Spirits)

Maverick Drinks
Tunbridge Wells, Kent, UK

Senior National Account Manager – Wholesale RTM (Craft Spirits)

Maverick Drinks
Tunbridge Wells, Kent, UK

Digital Marketing Manager

Master of Malt
Tunbridge Wells, Kent, UK

Experienced On Trade Sales Person

Borough Wine Imports
London, GB

3 x Business Development Executive

The Lakes Distillery Company Limited
Newcastle head office and nationwide, UK

Editor

Master of Malt Ltd
Tunbridge Wells(Kent)

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Brand Manager

Hallgarten Druitt
Luton, UK

Experienced On-Trade Salespeople Required

Portal Wines and Spirits
London, UK

Purchasing and Sales (Wine Trader)

JF Tobias
London, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Cambridge / Peterborough / Bedfordshire, UK

The Global Merlot Masters 2017

Deadline : 17th April 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 14th April 2017

The Global Sparkling Masters 2017

Deadline : 12th May 2017

Click to view more

Global Chardonnay Masters 2016

Now in its fourth year, the competition will identify the best Chardonnay from all around the world in every price range.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

The Global Malbec Masters 2016

the drinks business is proud to announce the inaugural Global Malbec Masters 2016.

Click to view more