On-trade update: Premium driving growth

By Erin Smith

Published: 21 October, 2016

The figures all indicate that the total on-trade Great Britain wine market is continuing to shrink, albeit at a slower pace. The total GB on-trade is made up of over 124,000 outlets, with volume sales down 2.5% and value sales down 0.5%. Within that, however, premium on-trade is out-pacing the market with volume up 6.3% and value up 9.4%.

"The data really tells us something that we instinctually already knew. If you look at these trends you can draw the conclusion that the consumer is demanding, but is willing to pay as long as they feel like they are getting value and will experiment if they are given confidence. A lot of that confidence will come from the staff on the premises," Liberty Wines MD David Gleave MW said.

White wine only slightly dominates the market accounting for 54% of case sales for the total still wine market. Volume has remained relatively flat for white wine and value increased only slightly, though in comparison "red and rosé have been hit hard by both volume and value".

While some may be more biased towards New World wines and the increased willingness of wine-drinkers to experiment more, France is still a workhorse for many different styles of premium on-trade outlets. It is the only country that has consistently gained market share by volume and value over the past three years.

"The data supports what we have been seeing for a few years. France and Italy are two of the biggest wine-producing countries in the world and they are the most diverse. I think France had to tell a different story and it has been doing that now for a number of years as the number of dynamic wine producers shows. This is resonating with consumers and with the trade. But it is justifying its place - it is not just selling on this great tradition," Gleave added.

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