Tesco to up focus on no-low alcohol wine

Tesco is upping its focus on low and no-alcohol wine and is understood to be mulling a dedicated bay for the products.

The UK retailer is said to be mulling the installation of a new fixture dedicated to the no- and low-alcohol category, which db understands could go in stores as early as the middle of March.

A Tesco spokesman told db the team were currently “knuckling down the details” and that it “was looking at different options and the best way to present it”, although she was not able to confirm exactly how it would merchandise products in store or the timing of the roll-out, although this was expected to be decided “in the next few weeks”.

The most recent Nielsen data show the no- and low-alcohol category is in growth, with values up 39% in the 52 weeks to 10/09/2016, and the spokesman said Tesco was keen to be part of the growth of the category and it would be “silly to ignore” it.

She noted that Easter was a key season for the BWS category, when Tesco would hold a ‘drinks festival’ in store, with promotions also being included on the no- and low-alcohol category. It was hoped to be in store by then, she added.

Andrew Turner of Halewood Wines & Spirits, parent company of non-alcoholic wine brand Eisberg, said the move would bring greater prominence to a growing category. Eisberg, which has a 52% share of the market and saw sales up 40% in the 52 weeks to 10/09/2016  is rolling out its first sparkling wines into Tesco this month.

Turner said it was set to be “a key part of bringing attention to that bay”.

“When products are easier to find and retailers give them more space, then it has more exposure and space generates sales and that created momentum,” he said. “Ten years ago, when retailers looked at bag-in-box in a separate fixture and created it, it acknowledged that it was bought for different occasions and by different consumers.”

“Tesco can see where the market is going and that consumers are looking for these products, so it is the right time to work with the number one brand and bring additional products into that category,” he said. “Going forward we will work with Tesco on brand activation so that the support we give is in line and brings incremental support and attention to the bay.”