Seeing Red

The wine market is being driven by red wines and New World brands, but France may want to take a lesson or two from Spain

Red Wine accounts for just over half the value of all Multiple and Co-op wine sales in Great Britain, with growth at 10% over the past year.

This growth is mainly being driven by New World wines – specifically Australian, Californian and Chilean. Increased popularity is a key ingredient of growth, as more buyers experiment with different wines. Overall, the number of red wine buyers has increased by 5%, the much greater growth enjoyed by Californian or Australian wines reflects existing consumers who are broadening their portfolios.

Increased penetration can often mean a downturn in average consumption, as new triallists will by definition buy less than long-standing buyers. So the general increase in average volume purchased is a sign that existing buyers are also adding value to the category by increasing their levels of purchasing.

Among Old World wines, Spanish wine is performing very successfully – attracting more consumers and boosting average purchasing. French wine, by contrast, is losing value, both by losing buyers and through reduced consumption by the consumers who have been retained.

The leading retailers overtrade in Australian wine, which both reflects and accounts for its dominance. Waitrose, catering to the most upmarket and probably the most knowledgeable wine consumers, overtrades significantly in French wine, which unless it can develop the clear branding that appeals to more mainstream consumers may be relegated to this highvalue niche.