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Own label holds its own

Tesco and Chile lead the way in the highly competitive supermarket own-label wine sector

New World own label (OL) wines are growing noticeably ahead of the total wine market.

Chilean New World OL wine is performing most strongly compared with other New World OL wines,  encouraging more buyers and the greatest value and volume growth.  This has occurred despite a greater price increase than the average bottle of New World OL wine. 

All the top performing New World wines are growing ahead of the total wine market in value and encouraged new buyers over the past year. This considerable increase in value is down to an increase in the average price of the wine, along with the growth in buyer numbers. The average amount purchased by each buyer over the year is growing, yet this is minimal for South African OL wine

A notable difference between the top performing New World wines is the sales format.  New World wines, as a whole, are more popular in a 3 litre format, especially South African. However Chilean and Australian wine are more popular in a 75cl bottle.

In terms of retailers, Tesco is the most successful, taking almost half that is spent on total New World wines. Asda overtrades in Chilean OL wine, while the Co-op noticeably overtrades in South African OL wine. Somerfield has a minimal value share of total New World OL wines, yet does over trade in Australian OL wine.

The top performing New World wines are rather changeable though Tesco continues to grow its brands, with three in the top ten.  Sainsbury’s and Asda’s wines are losing popularity, despite being in third and fourth place respectively.

db  May 2006

TNS is a leading global provider of market information. We provide research, advice and insight on market segmentation, advertising and communications, new product development and brand performance. The TNS Worldpanel data is based on our continuous panel of 20,000 households. TNS tracks the alcohol purchases across all major grocery multiples and co-ops. For further information, please contact David Buckley, business director for TNS Worldpanel on 020 8967 1513

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