Half-price wine brands under threat

Selling high-volume wine brands in the UK off-trade is becoming increasingly challenging as retailers curtail price-cutting practices and place more emphasis on developing sales of own and exclusive labels.

The amount of wine sold on promotion in the UK off-trade has fallen by 6% in the last 12 months

This two-pronged threat to branded wine was identified by Paul Schaafsma, UK general manager for Accolade Wines, who stressed the need for major suppliers to alter their approach to selling wine in UK supermarkets during a discussion with the drinks business last month.

“There is definitely a need for own-label and exclusive label in the marketplace and there is a need for brands to move away from the deep discounts that have been there in the past,” he stated.

Continuing, he said, “There are fewer half-price deals, it is more commonly 20-25% off – or a different mechanic – and you need to make sure your portfolio is capable of that… those focused on half-price drivers will struggle and you need to make sure you will sell off-promotion.”

One aspect encouraging a move away from deep discounting wine brands in UK supermarkets are new regulations from the Office of Fair Trading, and in November last year Aldi, Co-Op, Lidl, Marks & Spencer, Morrisons, Sainsbury’s, Tesco and Waitrose all agreed to adopt a new code of practice set out by the regulator.

These include the avoidance of any artificial price inflation to make a later discount look more attractive, as well as ensuring that any promotions run for the same or less time than the product was sold at its full price.

As a result of supermarket’s adoption of these retailing regulations, Schaafsma said the amount of wine sold on promotion in the UK off-trade had fallen by 6% in the last 12 months to July this year, quoting Nielsen figures.

He also said that 54% of the wine sold through retailers in the UK over the last year was purchased on discount, a much lower level than seen in the market over recent history.

Furthermore, a combination of factors, including fewer price promotions, has meant that the total off-trade wine market is down 2.9% in volume.

One Response to “Half-price wine brands under threat”

  1. Glugger says:

    ” …you need to make sure you will sell off-promotion”

    Step 1 – Every supplier makes wine and sells it to the retailer at the price it is actually worth.
    Step 2 – Every supplier tells the retailer that there is no room for promotional moneys
    Step 3 – Every discounting retailer stops taking the public for a ride and sells at the price it is actually worth.
    Step 4 – Dream on.

Leave a Reply

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

Subscribe to our newsletters

Account Manager - Manchester

Black Fire Tequila
Manchester, UK

Marylebone Sales Manager

Philglas & Swiggot
Marylebone, London

Sales Administrator

Les Caves de Pyrène
Guildford, UK

General Manager

3Cs Cider
UK

Liquid Production Assistant

Atom Group
Tonbridge, UK

Brand Manager

Hallgarten Druitt
Luton, UK

Brand Manager

Kilchoman Distillery Co Ltd
Edinburgh, UK

Wine Bar Supervisor

Henny's
London, UK

Partner Manager - On-trade - North West

Maverick Drinks
Manchester, UK

Partner Manager - On-trade - Scotland and NE

Maverick Drinks
Edinburgh, UK

Pays d'Oc Tasting

London,United Kingdom
28th Jun 2018

CHILE: From The Very Top To The Downright Hot

Manchester,United Kingdom
2nd Jul 2018

CHILE: From The Very Top To The Downright Hot

Edinburgh,United Kingdom
3rd Jul 2018
Click to view more

Champagne Masters 2018

Deadline : 22nd June 2018

The Global Malbec Masters 2018

Deadline : 1st July 2018

Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more