The wine market was worth £10.28bn in 2005, representing a quarter (24.6%) of spending on alcohol in the UK. This share increases gradually, but steadily, as British consumer tastes shift away from beer and spirits towards a more cosmopolitan model of drinking.
Press Release Body = Wine - Market Report Plus 2006
Executive Summary
The wine market was worth £10.28bn in 2005, representing a quarter (24.6%) of spending on alcohol in the UK. This share increases gradually, but steadily, as British consumer tastes shift away from beer and spirits towards a more cosmopolitan model of drinking. Almost all wine in the UK is imported and this makes for a fiercely competitive marketplace. Every major wine-producing country competes in the UK market, although the Old World countries - led by France - have struggled to keep up with New World exporters - led by Australia. The Australian share of wine imports doubled between 1996 and 2006, while French imports slipped from a third to a fifth of the market. Clear branding and the use of `varietal\' grape names (e.g. Merlot or Pinot Gris) has contributed to the success of the New World, whereas Old World supplies are still fragmented by traditional names based on region, producer or estate. Australia contributes leading brands such as Hardys and Jacob\'s Creek, while the US - another country with a rising share of the UK market - offers familiar brands such as Gallo, Blossom Hill and Fetzer. However, ownership of these brands crosses frontiers, so that Blossom Hill and Piat D\'Or (a French brand) are owned by Diageo, a UK company, while Constellation Brands Inc, now the world\'s largest wine company, has wines from the US, Australia and South Africa. Retailing of wine is split between the off-trade (or take-home) and the on-trade (pubs and restaurants) and both distribution sectors have improved their wine offers as the typical drinker becomes more knowledgeable. Take-home is dominated by multiple grocers, putting pressure on off licences, while eating out has driven the growth of on-trade wine in both pubs and restaurants.
2025
