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Embrace the on-trade or be "doomed"

Published:  21 May, 2010

Industry warned on-trade wine sales are declining every year

The trade must wake up and work harder to improve its offering or face doom, Wine Intelligence said at the London Wine Fair.

Industry warned on-trade wine sales are declining every year

The industry must wake up and work harder to improve its offering or face doom, Wine Intelligence said at the London International Wine Fair.

Brian Howard, Wine Intelligence business development director, warned that on-trade sales of wine had been declining steadily for three years.

Informal dining (bar/restaurant) had dropped 19% by March 2010 and formal dining (restaurant) by 28%.

14% of the 3,000 consumers surveyed online over three years refuse to buy wine over £15. 11% of regular wine drinkers don't buy wine at all when they go a bar or restaurant.

71% said wine was "extremely good value" in supermarkets. Only 20% said the same for the on-trade.

"This has to be a red signal for us," Howard said. "28.1m people in the UK drink wine and 80% go to the on-trade but they are not choosing wine.
"Unless we can do better in the on-trade we are doomed."

Adam Thomas, head of commercials for brewers Hall & Woodhouse, said: "The trade was too focussed on the off-trade and is fixated with price.
"The on-trade can learn from the off-trade by offering promotions and a better range. Our biggest advantage is face to face contact. If staff are knowledgeable they can advise customers."

Peter McCombie MW, a restaurant wine advisor, said: "Take Pinot Grigio seriously. A lot of people like it and it has a semi brand status. It will sell.
"I also want to see more wines by the glass and carafes," he said.

"When a restaurant says it can't offer more wines by the glass, using excuses such as there will be too much wastage; it's more that they can't be bothered."

Gerard Bassett, MW Owner of Hotel Terravina who won the World's Best Sommelier added: "We have seven or eight wines by the glass but like to make our customers feel special. Therefore, our sommeliers may just surprise the guest by opening something not on the list for them to try."

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