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RETAIL FORTFIELDS: Siege Mentality
The fortified wine category continues its decline as private labels nudge past 40% of sector spend
Siege Mentality
Fortified wines have declined by just under 6.5% as a result of a fall in popularity. This decline has occurred across the Port, Sherry and vermouth sectors, with only brands marketed as simply “fortified wines” growing their market.
Sherry and vermouth consumers are buying more per trip which is helping to offset some of the losses incurred by the fall in buyer numbers. Port buyers are buying less per trip but more often.
The Christmas season is crucial for the fortified wine market as a whole, as sales more than double in December. This particularly applies to Sherry and Port as these sectors make ideal gifts. Vermouth and “fortified wine” brands tend to have a less pronounced Christmas uplift.
Tesco’s dominance of the total alcohol category is reflected in its share of the Sherry and vermouth sectors which has benefited from regular Christmas promotions. Sainsbury’s has placed less emphasis on vermouth, instead choosing to focus its promotional activity on Port in which it is currently over-trading.
Harveys Bristol Cream and Croft Sherry have both retained their respective first and second spots in the top 10 fortified wine penetration list from last year, with HBC a long way in front of the chasing pack.
Private label continues to grow within the fortified wine category and now accounts for over 42% of total category spend. Tesco Sherry is a prime example of this trend and has moved up a level to sixth position in the penetration league this year.
© db January2007