2018 UK Wine Report CATEGORY DEVELOPMENT & INSIGHT - Accolade Wines
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2018 UK Wine Report CATEGORY DEVELOPMENT & INSIGHT
c a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 03
Contents
4
SOURCES Foreword “ Like wine itself, the
market is characterised
by subtle nuances
Executive summary
this is a fascinating time and changing moods.
WineNation segmentation 2017
WineNation Consumer
The onus is on us
7 UK drinks landscape Research 2017
Nielsen Scantrack Epos sales data
to be in the wine trade to understand those
8 Wine Nation portraits to 30th December 2017
Kantar WorldPanel data to nuances ”
10 Sizing up the Wine Nation 31st December 2017
CGA on-trade sales data to
12 Occasions, motivations & missions 7th October 2017
Mintel Still, Sparkling and
16 On-trade facts & figures Fortified Wine UK, October 2016
Ciatti Global Market Report
18 Off-trade facts & figures HMRC
19
www.gov.scot
The Food for Tonight opportunity Copyright © 2018 Accolade Wines Despite some exceptional political and economic pressures The research presented in this report goes deep into the
20 Wine Nation at a glance
All rights reserved and a gradual social shift that sees consumers growing
increasingly mindful of their alcohol consumption, there are
psyche of the adult drinks market and I’m proud of the insight
we’re able to deliver as a result of it. There are clear changes
22 A big role for brands
new opportunities emerging all the time for marketing this
wonderful wine in creative and inspiring ways.
taking place in the UK wine industry, and as we respond to
those changes, we are developing new dimensions to
24 Category vision This report is a demonstration of our determination to
take those opportunities. Wine is the most widely consumed
Accolade Wines that are leading the way in helping the
market to evolve.
28 Pricing, tax & Legislation alcoholic beverage in the UK, drunk by 60% of the nation’s
adults, and the industry contributes £9.1billion to the
30 Wine harvest report Treasury. Like wine itself, the market is characterised by
subtle nuances and changing moods. The onus is on us in the
32 News from Accolade Wines wine trade to understand those nuances and respond to those
moods. We can only do that by knowing our consumers Ade McKeon
inside out.
General Manager, Accolade Wines UK & Ireland
c a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 05
Executive
Summary
2017 was a year of change
for the UK wine industry
Volumes fell but value rose overall, increase in wine duty since 2013, MARKET TRENDS
influenced in part by rising prices and
taxes but also by a discernible shift
taking the tax on a 75cl bottle of wine
to £2.16. But there are other drivers
The boom in sales of Prosecco has driven “ In the on-trade, the
among consumers towards choosing behind the increase in sales value for
a 23.3% growth in on-trade volumes of
sparkling wine - and an 11.7% decline
country of origin on the
quality over quantity. This report wine, as our research reveals. in Champagne sales. The renewed rise was New Zealand,
which gained 13.3%
combines reliable data from various Our Wine Nation survey gathered popularity of gin, up 24% by volume in
sources and overlays it with insight data from 8,000 regular wine drinkers the off-trade and 19% in the on-trade,
gleaned from our own research to and uncovered valuable insight into has had a similar effect on sales of spirits, while France fell
provide an in-depth picture of the UK
wine market as it stands.
their needs and motivations when it pushing off-trade volumes up by 1.8%,
with a 5% increase in value.
by 4.0% ”
comes to buying wine. A second piece
In January 2017 the average price of research logged information from French wine continued to dominate
of a bottle of wine broke the £5.50 a more general sample of adults, on-trade values but the origin on the rise
point for the first time, due largely including non-wine drinkers, giving us was New Zealand, which gained 13.3%
while France fell by 4.0%. In the off-trade,
to the effect of Brexit, and in March a better understanding of the untapped
Australia led the way with sales worth
the Chancellor announced the biggest potential market for wine.
£1.17bn, up 1.5% on 2016, but again
New Zealand was the star performer,
increasing value by 12.2%.
▼
c a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 07
UK drinks
landscape
In retail we detected four opportunity Our research enables us to segment THE OUTLOOK
areas: the ‘Food for tonight’ shopping the market and pinpoint the needs and PR OSE CCOMAN IA
FOR ACCOLADE
+22.7%
mission, where shoppers can be persuaded motivations that drive each segment to
to buy a bottle of wine as they choose buy wine. The largest segment by far is Accolade Wines continues to supply the
their ingredients for the evening meal; the Newbies (those new to wine drinking), leading brands, including Hardys, Kumala,
Perfect For, exploring pack formats which
play a part in convenient options for
averaging 18-24 in age, 77% female and
preferring to drink white wine. At the
Echo Falls, Stowells and, in the on-trade,
Jack Rabbit, and in 2017 held 11% of What are you drinking? SPARKLING WINE IS THE ONLY
ALCOHOLIC DRINK CATEGORY TO HAVE
in-home and outdoor occasions, with other end of the scale are the Experts, volume sales and 9.6% of value sales. But SEEN INCREASED PURCHASE IN 2017,
Wine on Tap transforming the image of aged 55+ on average, predominantly with volumes falling, we need to respond WITH 8.7% VALUE GROWTH IN THE
The purchase of beer, wine and spirits growth of 1.8% and still wine value was
boxed wine; No and Low alcohol wine, male and favouring red wine. While to the evidence of our research and steer OFF-TRADE AND A MASSIVE 22.7%
is falling – down 1.6% to the end of up 0.8%. This is being driven by off-trade IN THE ON-TRADE
catering for the growing population of Newbies make up 28% of the Wine Nation a path away from volume towards the
2017 – although spirit volumes alone sales, where still wine values rose 2.2%.
teetotal adults and occasions when alcohol population and Experts just 5%, those power of the brand.
control is high; and the blurring of brand figures are more or less reversed when it are up 1.4%, driven by the gin trend. FLYIN G KIWIS
We will continue to offer consumers their
11.1%
categories, i.e. established drinks brands comes to their off-trade value. favourite brands in formats that suit them,
Wine sales make up a significant QUALITY NOT QUANTITY
moving into unfamiliar categories, like our beginning with 50cl. We have strengthened chunk of that contraction, with still
The opportunity to capture new wine Consumers are also choosing quality over
own Echo Falls Summer Berries Vodka. drinkers and help them develop into our fine wine offering through the launch wine volumes down 2.2% and total
quantity, handpicking better wines for
more confident, regular wine buyers will of our recently acquired Fine Wine Champagne down a bubble-bursting specific occasions and being prepared to WHILE MOST OF THE BIG ORIGINS SAW
be realised by tapping into those four Partners, and now offer an exciting range 17.6%. The outlier is sparkling wine VOLUME FALL, NEW ZEALAND ENJOYED
PRODUCT, MESSAGE, pay a bit more to get a brand and style
DOUBLE-DIGIT OFF-TRADE GROWTH OF
key opportunity areas and delivering the of outstanding wines, particularly wines (read Prosecco), which has bucked the they know that they and their friends
LOCATION right product, with the right message, in from Australia, which will appeal to the trend remarkably with 7.8% volume
11.1% AND WAS THE ONLY REGION IN
will like. The rise of the discounters, Aldi GROWTH IN THE ON-TRADE, WITH 6.7%
In the off-trade, convenience stores and the right location. That means exploring high-spending Expert end of the market. growth and a 13.8% increase in value. and Lidl, and the work they have put in
discounters are enjoying notable growth different pack formats, including 50cl, And, having broken new ground with to promoting premium wines has been a
and we have seen some interesting magnums, pouches and Wine on Tap, the launch of Echo Falls Summer Berries contributory factor.
initiatives in their tactics for selling making it easy and attractive to choose Vodka in 2017, we will investigate further MORE MODERATION
In the on-trade, dry led outlets have
wine, bringing higher quality wines into wines of a higher quality and price point, opportunities for blurring categories. The general fall in volumes reflects a seen a slight rise of 0.3% in sales values,
consideration for more consumers with as well as offering No and Low alcohol With new measures like Scotland’s consumer shift in attitude to alcohol. showing that, while Prosecco and gin are
some heavily discounted promotions. In wines, and positioning these wines Minimum Unit Pricing being introduced Around 20% of UK adults are teetotal and enjoying a boom in pubs and bars, when it
the on-trade, it’s the dry led establishments intelligently in local convenience stores, this year and financial pressures that figure is rising by 0.2% a year. There
comes to eating out, wine still holds sway. WINE MAKES
where wine holds sway and there is to catch the ‘Food for Tonight’ on households, the beer, wine and is also a general trend towards moderation
a growing opportunity to introduce shopping mission. spirits trade is not going to get any in both frequency and quantity, driven by The job is to democratise wine, helping UP JUST OVER A
customers to wines at a higher easier. However, with the right kind of concerns over health, cost and personal young consumers to find what they like
In all these cases, brands play a key role,
quickly and easily and to ease them
FIFTH OF TOTAL
price point. giving consumers confidence that they can knowledge, the power is in our hands to image. The effect of Brexit on population
score some significant successes. growth and the value of the pound is also towards choosing wine more frequently as BWS VALUE
quickly and easily choose a wine that they
know to be of a consistent quality and of a contributory factor, particularly for wine, their knowledge and interest grow.
a style that they enjoy at a price they are being predominantly an import business.
happy to pay. While volumes are down, however, values
are up. The total BWS market saw value Source: Nielsen Scantrack / CGA
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Eight
NEWBIES ECONOMISERS lowest after Economisers and, like them,
they buy on trust. You’ll find them buying
Just beginning to take an interest in The lowest spenders of all wine
wine in their regular top-up shops at the
wine, Newbies are starting to buy wine for buyers, Economisers base their choice
supermarket or discounter, or stocking up
formal occasions, parties and unplanned mainly on price, past experience and
online, looking for familiar origins and
social events. They know very little about recommendation. They have little wine
varietals, usually Australian, Spanish and
wine and want to be guided when they knowledge or interest, usually partaking
portraits
Chilean red.
shop. Their wine shopping missions tend no more than once a week, but they like
to be a regular monthly shop or a specific to be sure they’re getting good value for
mission to buy wine for tonight. money. They take advantage of offers at ENGAGED EXPLORERS
their supermarket and local convenience Regular wine drinkers with an interest
shop, or may visit a discounter if they in expanding their knowledge, Engaged
STRONG PROSPECTS have a specific need for wine. Explorers buy wine for daily consumption
Still relatively new to the game, Strong as part of their regular and top-up
Prospects have developed a keen
CONFIDENT shops, both in-store and online. They’re
interest in wine and want to be seen as receptive to expert recommendations and
knowledgeable. They will drink wine a ENTHUSIASTS
promotions and enjoy new discoveries, but
few times a week and tend to buy it on Interest is high, knowledge is high and they like to apply their own knowledge
their way home from work, as well as growing, and they regard wine as the and experience and are drawn to New
of the UK wine consumer
stocking up in their regular monthly shop. drink of choice for social occasions, meals World reds and recognised brands.
They like to broaden their knowledge and and relaxation. Confident Enthusiasts are
experiment, especially if they can find keen to learn about wine of all styles,
something to impress their friends. including fortified, sparkling and dessert
EXPERTS
Wine Nation is an exclusive Accolade Wines determine purchase choice, and thus target
wine, but will have their favourites and Experts are very knowledgeable about
project, which has been running since 2006, specific consumer groups more effectively.
OCCASIONALS tend towards the big name brands. They wine and will drink fortified, sparkling
charting the habits of the UK’s regular wine The eight segments range in their wine
do a lot of their wine shopping specifically and dessert wines, as well as reds and
drinkers (people who drink wine at least knowledge and interest from Newbies, As the name suggests, Occasionals are for that day’s consumption and are very whites, but mostly reserve it for drinking
twice a month) to create a clear picture of just embarking on their wine journey, to infrequent drinkers, saving their wine receptive to labels. with food or for celebrations. They tend to
the when, where, why and how much of Confident Enthusiasts and Experts. When consumption for special occasions, but stock up on specific missions to specialist
wine consumption. This market makes up and why they choose to drink wine, where they regard the quality of the wine as wine shops but will occasionally pick up a
54% of the adult population and by dividing and when they buy and what influences important and choose carefully to match ROUTINERS
wine on spec during a regular food shop,
it into eight distinct segments, we are able their purchase choice are all revealed in the wine to the occasion, guests and food. Wine is a staple for Routiners, though they if it looks like something new
to identify the patterns and influences that the Wine Nation study. Most of their buying is done during top-up don’t regard it with any great reverence. and interesting.
shops or specific wine-buying missions They drink it most days and have a broad
to trusted shops offering quality wine at repertoire, but their spend per bottle is the
good value.
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Sizing up
WINE SEGMENT MIGRATION
INTEREST
the wine nation Educate me CONFIDENT
ENTHUSIASTS
Engage me
POPULATION SHARE
NEWBIES
Share%
24
OFF-TRADE VALUE
EXPERTS
Share%
23
24%
NEWBIES MAKE UP A QUARTER
OF THE REGULAR WINE DRINKING
STRONG PROSPECTS 18 ENGAGED EXPLORERS 18 POPULATION BUT AREN’T YET EXPERTS
OCCASIONALS 18 CONFIDENT ENTHUSIASTS 17 SPENDING MUCH ON WINE ENGAGED
EXPLORERS
23%
ENGAGED EXPLORERS 10 ROUTINERS 14
CONFIDENT ENTHUSIASTS 9 STRONG PROSPECTS 13
STRONG
ROUTINERS 9 OCCASIONALS 5 PROSPECTS
ECONOMISERS 8 ECONOMISERS 5 EXPERTS ARE THE SMALLEST
EXPERTS 4 NEWBIES 5 BUT MOST VALUABLE SEGMENT
FOR OFF-SALES
Tell me Inspire me
27%
Newbies make up the largest cohort of the ON-TRADE VALUE
UK’s regular wine drinkers but contribute Share%
ROUTINERS
the least value to off-trade sales. The STRONG PROSPECTS 27
challenge is clearly to encourage Newbies’
CONFIDENT ENTHUSIASTS 18 STRONG PROSPECTS ARE THE BIG
embryonic interest in wine and develop SPENDERS FOR THE ON-TRADE
them into more confident, regular wine ENGAGED EXPLORERS 17
This shows the typical
consumers, so that they become the more EXPERTS 12 WHILE EXPERTS HAVE THE MOST
OCCASIONALS
NEWBIES migration paths of the Wine
high-spending Strong Prospects, Routiners, ROUTINERS 9 WINE KNOWLEDGE, CONFIDENT Nation segments and how
Engaged Explorers, Confident Enthusiasts ENTHUSIASTS SHOW THE MOST the sentiments change as
NEWBIES 9
and Experts. The graph on the right shows INTEREST knowledge and interest
how consumers tend to migrate from one OCCASIONALS 6 develop. Not all consumers
complete the journey, but
segment to another. ECONOMISERS 2 NEWBIES CAN QUICKLY BECOME
ECONOMISERS stop off at the point they find
CONFIDENT EXPLORERS. THE TRICK
most comfortable.
IS TO KEEP THEM THERE
KNOWLEDGE
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Consumer Insights
FORMAL/FAMILY FORMAL OCCASION PARTY/CELEBRATION
SUNDAY LUNCH PLANNED -
Motivations: Have fun,
WITHOUT FOOD
Motivations: Quality socialise and celebrate.
time with nearest Motivations: Have fun Prominent segments:
and dearest. and connect with others. Newbies, Strong
occasions, motivations & missions Prominent segments: Strong Prospects,
Occasionals and Economisers.
Prominent segments: Newbies, Strong
Prospects and Occasionals.
Prospects and Occasionals.
Mission: Last-minute top-up shop from
Mission: Regular monthly shop, Mission: Regular monthly or top-up local convenience store, discounter or
WHY PEOPLE DRINK Strong performer: Chilled wines. UNPLANNED SOCIAL specialist wine shop or online with good shops. Some potential to catch shoppers specialist wine shop.
Known favourites. Trusted brands. OCCASION AT HOME range and value for money. with offers. Strong performers: Popular wines that
New to Wine Nation, we have defined Competition: Hot drinks. WITHOUT FOOD Strong performers: Wines that Strong performers: Good quality wines impress, offering good value when bought
eight types of occasion when consumers Top tip: Position wines near ready meals, impress and go well with food, based on that impress from well-known brands. in quantity.
choose to drink wine. Each has its own Motivations: Wind
with signage to catch shoppers just before recommendations, advertising Competition: All other drinks categories. Competition: All other drinks categories.
motivations and each consumer segment down and have fun.
they enter the store. and tastings. Top tip: Stock a good range of premium Top tip: Make sure chilled wines are
tends towards a different combination of Prominent segments: Newbies,
Competition: Soft drinks. brands and highlight offers on aisle ends. available.
occasions. By understanding the drivers Occasionals and Economisers.
Top tip: Promotions and clear
behind these occasions and adding this INFORMAL EVENING/ Mission: The most convenient outlet
information to help choice go a long way.
information to what we know about the LUNCHTIME MEAL with a wide range of quality brands and DINNER PARTY
eight consumer segments, we can begin to good value for money. (MORE THAN 6 GIFTING
Motivations: Habit or
pinpoint the most effective sales strategy Strong performers: Deals on favourite FORMAL LUNCHTIME/ PEOPLE)
chance to spend quality Buying wine as a gift applies on a
brands and wines that impress. EVENING MEAL
for each wine-drinking occasion. time with friends or family. Motivations: Socialise number of these occasions. Buying
Competition: Cider, vodka and whisky. (4-6 PEOPLE)
Prominent segments: Routiners, and celebrate. habits vary, however, depending on
Top tip: Promote deals at front of store
Experts and Engaged Explorers. Motivations: Celebrate Prominent segments: Newbies, Strong whether the wine is a contribution
THE DRINK AT THE and influence in advance through emails
Mission: Regular monthly shop, both in- and have fun. Prospects and Engaged Explorers. to the occasion or a thank you. Wine
END OF THE DAY and tastings.
store and online. Prominent segments: Newbies, Strong Mission: Regular monthly shop and taken to a celebration is more likely
Motivations: Wind Strong performers: Preferred Prospects and Experts. specific shop for the occasion from
to be picked up on the way at a local
down and relax or varietals and brands, with food matching Mission: Regular monthly shop, convenience store or specialist wine shop.
treat yourself. convenience store or petrol station,
important. specialist wine shop and online store, and Strong performers: Wines that impress
Prominent segments: Confident whereas the thank you is more
Competition: No strong competitor. impulse purchases when shopping for and complement food from recognised
Enthusiasts, Routiners, and Economisers. Top tip: Strong, clear communication other things. brands. likely to be bought from a local
Mission: Daily shop from local about the occasion in aisle will Strong performers: Wines that impress Competition: All other drinks categories. specialist. The wine itself needs to be
THE DRINK AT THE END OF THE DAY IS
convenience store. influence choice. THE MOST POPULAR WINE OCCASION from respected brands. Top tip: Build a reputation for attractive sufficiently prestigious and trusted
FOR ALL SEGMENTS EXCEPT EXPERTS, Competition: Soft drinks. offers on a good range of premium wines. recommendations count for a lot,
WHO PREFER THEIR EVENING DRINK Top tip: Make it easy to find known but promotions will still sway the
WITH A MEAL
brands and present food matching final choice. Appealing packaging is
notes clearly. also important.
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Consumer Insights
WHAT’S HITTING THE SPOT?
PROSECCO IS THE THIRD MOST
As interest and knowledge develop, POPULAR WINE STYLE AFTER STILL
tastes change from rosé, popular among RED AND WHITE FOR ALL SEGMENTS
Newbies, to the fine wines, particularly EXCEPT ECONOMISERS
occasions, motivations & missions
reds of specific origins and vintages, that
capture the interest of Experts.
● NEWBIES
TYPES OF WINE PEOPLE DRINK
● STRONG PROSPECTS
● OCCASIONALS
White% Red% Rosé%
● CONFIDENT ENTHUSIASTS
THE GENDER SWITCH
● ROUTINERS NEWBIES 64 47 64
Young women drive entry into the wine ● ENGAGED EXPLORERS
market and continue to dominate as their ● ECONOMISERS STRONG PROSPECTS 73 69 55
interest grows towards Confident Explorer PROPORTION OF ● EXPERTS
level. At the other end of the age scale,
the Experts, Economisers and Engaged
FEMALE MARKET CONFIDENT ENTHUSIASTS 87 75 57
Explorers are predominantly male and
aged over 55. ROUTINERS 72 74 35
Male% Female% Mode Age OCCASIONALS 70 68 40
NEWBIES 23 77 18 - 24
ENGAGED EXPLORERS 73 77 39
STRONG PROSPECTS 28 72 35 - 44
CONFIDENT ENTHUSIASTS 38 62 35 - 44
ECONOMISERS 69 54 34
“ Red wine continues to be
ROUTINERS 50 50 45 - 54
OCCASIONALS 56 44 45 - 54 PROPORTION OF
ENGAGED EXPLORERS 65 35 55+ MALE MARKET
EXPERTS 86 100 50
regarded as the acme of
ECONOMISERS 70 30 55+ quality wine by Experts.
It is the only style that
Source: Wine Nation
EXPERTS 79 21 55+
scores with 100% of any
one category ”
c a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 17
On-trade
AC C O L A D E O N TO P KE E P YOU R B OTTLE
THE TOP FIVE SUPPLIERS OFFERING WHILE SINGLE SERVE VOLUMES HAVE
A BROAD RANGE OF STRONG BRANDS, FALLEN ACROSS THE BOARD, WINE
COUNTRIES AND PRICE POINTS IS BY THE BOTTLE HAS DONE WELL,
COUNTRY OF DOMINATED BY ACCOLADE, WITH FIVE SHOWING STRONG VALUE GROWTH
TIMES MORE VOLUME SHARE THAN
ORIGIN VOLUME
facts & figures
ITS NEAREST RIVAL
SHARE 750ML BOTTLES
BEER, WINE AND SPIRITS
PERFORMANCE
WINE BREAKDOWN ACCOLADE WINES
CONCHA Y TORO
Volume Share%
9.8
2.0
+12.2% VALUE GROWTH
+5.8%
Volume Volume Value Volume Volume Value
Share% Change% Change% Share% Change% Change% TREASURY WINE ESTATES 1.9
TOTAL BWS 100 -2.6 +0.8 STILL WINE 87.4 -7.1 -2.2 ● FRANCE INTERNATIONAL WINE SERVICES 1.0
WINES* 7.1 -5.0 -0.5 SPARKLING 9.5 +23.3 +22.7 ● ITALY PERNOD RICARD 0.7
VOLUME GROWTH
SPIRITS 2.2 -0.6 +3.2 CHAMPAGNE 2.4 -11.7 -9.3 ● AUSTRALIA
0.3%
LADs 90.7 -2.5 +0.2 OTHER 0.8 -7.2 -6.8 PINOT PICKS UP ● USA
+0.4%
● CHILE
● SPAIN
● WINES*
WHITE WINE DOMINATES STILL WINE HAS SEEN A SLIGHT VALUE
● SPIRITS ● SOUTH AFRICA
● LADS
VOLUME SHARE VOLUME RISE SETS PINOT NOIR APART ● NEW ZEALAND
INCREASE IN DRY LED OUTLETS
FROM OTHER TOP 5 REDS
● ARGENTINA
53.3%
33.9%
● OTHER COUNTRIES
37.5%
VOLUME SHARE MAKES MERLOT KING KIWI VALUES SOAR ALL RIGHT JACK
BWS VOLUME
13.3% +4.6%
OF THE REDS
SHARE
9.2%
70%
OF WHITE SALES COME FROM THE
NEW ZEALAND WINE ADDED
SIGNIFICANT VALUE AND GAINED 6.7%
IN VOLUME. ARGENTINIAN WINE SAW
JACK RABBIT WAS THE LEADING
ON-TRADE BRAND BY VOLUME AND THE
ONLY ONE IN THE TOP 10 TO SEE
WHITE RED ROSÉ TOP THREE GRAPES: PINOT GRIGIO, VALUE GROWTH OF 6% AND A RISE IN VOLUME
SAUVIGNON BLANC AND CHARDONNAY ITALIAN VALUE GREW 0.2%
Source: CGA
* includes still, sparkling, Champagne and fortified wine
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Off-trade Buying for tonight
facts & figures targeting the food for tonight mission
WHILE VALUE HAS FALLEN AT
The year-on-year off-trade sales figures 75CL VALUE SHARE BY PRICE THE BUDGET END OF THE PRICE On average, shoppers make 273 key, both in terms of location (close
for 2017 show that, while the volume SPECTRUM, WINES ABOVE £6 A BOTTLE shopping trips each year and nearly to home or work) and store size
BAND - GROCERY MULTIPLES HAVE SEEN VALUE INCREASE, MOST
of wine sales has fallen (except where 90% of them are quick missions – to (smaller than supermarket). By placing
NOTABLY IN THE £7-£9.99 PRICE BAND
Prosecco has driven growth in sparkling ● LY pick up a meal for tonight, a specific favourite brands by the ready meals
wine sales), value is up. As consumers 30.4 29.7 item or a top-up. However, wine is in and promoting food matching, there is
● TY 28.2
drink less frequently, they are 26.4 less than 10% of food for tonight or a good opportunity to catch shoppers
nevertheless spending more, choosing top-up missions, which presents an with tonight’s meal and relaxation
brands of known quality. 19.8 enormous opportunity. in mind, particularly Newbies and
17.6
The popularity of Prosecco has
16.3 Confident Enthusiasts.
13.5
impacted on Champagne sales and the
gin trend has driven a rise in spirits MISSIONS PER YEAR
6.9
sales that poses a challenge to wine. 3.9 3.4 3.9 Total Wine
MAIN SHOP 29.4 10.0
£3.99 OR LESS £4.00 - £4.99 £5.00 - £5.99 £6.00 - £6.99 £7.00 - £9.99 £10 OR MORE MISSION TENDENCIES
TOP-UP SHOP 142.1 9.0
WHEN WINE DRINKERS TEND TO BUY THEIR WINE
FOOD FOR TONIGHT 43.4 3.6
VALUE SALES VOLUME SALES
SPECIFIC JOURNEY 57.7 17.6
Value (£m) Share Growth Volume (‘m 9L cases) Share Growth REGULAR DAILY SHOP Strong Prospects
2017 2017 2017 2017 REGULAR WEEKLY SHOP Economisers, Experts, Engaged Explorers
TOTAL BWS 16.485 3.6% TOTAL BWS 373.9 -0.6% A largely untapped target for wine REGULAR MONTHLY SHOP Newbies, Strong Prospects
STILL WINE 5.551 33.7 2.6% STILL WINE 83.3 22.3 -1.1% sales is the Food for Tonight mission, TOP-UP SHOP Routiners, Occasionals, Engaged Explorers
SPARKLING WINE 851 5.2 8.7 SPARKLING WINE 10.2 2.7 6.2 which has seen an increase in value
FOOD FOR TONIGHT Newbies, Confident Enthusiasts
share of 8.4% for the total grocery
CHAMPAGNE 293 1.8 -10.6 CHAMPAGNE 1.1 0.3 -20.4 SPECIFIC WINE SHOP Newbies, Experts
market and 2% for still wine. This is
SPIRITS 4.196 25.5 5.0 SPIRITS 23.6 6.3 1.8 SPECIFIC SHOP (NON-WINE) Occasionals, Economisers, Experts
a quick shop, where convenience is
Sources: Nielsen Scantrack / Kantarc a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 21
Wine Nation
at a glance
CONFIDENT ENTHUSIASTS
AGE
35-44
NEWBIES
FITS WITH THE AMOUNT OF MONEY
I WANTED TO SPEND
ROUTINERS
THE WINE WAS SUITABLE FOR
THE OCCASION
1ST WHITE 1ST RED
2ND ROSÉ 2ND WHITE
INTEREST
3RD PROSECCO 3RD PROSECCO
AGE
35-44
AGE
STRONG PROSPECTS EXPERTS 55+
STRONG PROSPECTS ENGAGED EXPLORERS
THE WINE HAD APPEALING IT WENT WELL WITH THE FOOD
PACKAGING I WAS HAVING
AGE
ENGAGED EXPLORERS 55+ 1ST WHITE 1ST RED
2ND RED 2ND WHITE
3RD PROSECCO 3RD PROSECCO
AGE
ROUTINERS 45-54 OCCASIONALS ECONOMISERS
AGE
NEWBIES 18-24 Size of roundel reflects market share,
IT IS WHAT I KNOW OTHER FITS WITH THE AMOUNT OF MONEY
as detailed below. Male/female share is
PEOPLE DRINK AND LIKE I WANTED TO SPEND
indicated round the perimeter, the lighter
colour representing female. The box on the 1ST WHITE 1ST WHITE
right shows top three style preferences for
AGE
2ND RED 2ND RED
OCCASIONALS 45-54 each segment and top reasons for buying.
3RD PROSECCO 3RD ROSÉ
● NEWBIES 24%
● STRONG PROSPECTS 18% CONFIDENT ENTHUSIASTS EXPERTS
AGE
ECONOMISERS 55+ ● OCCASIONALS 18%
THE WINE HAD APPEALING IT WENT WELL WITH THE FOOD
● ENGAGED EXPLORERS 10% PACKAGING I WAS HAVING
● ROUTINERS 9% 1ST WHITE 1ST RED
● CONFIDENT ENTHUSIASTS 9% 2ND RED 2ND WHITE
● ECONOMISERS
3RD PROSECCO 3RD PROSECCO
8%
● EXPERTS 4%
KNOWLEDGEc a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 23
The falling appeal
A big role for brands
TOP 10 ON-TRADE BRANDS
BY VALUE SHARE
JACK RABBIT
Value share%
2.1
Volume share% Price per 175ml
3.2 £2.42
of promotions
brands & promotions
STOWELLS 1.2 1.7 £2.71
The proportion of wine volumes offered on promotion in
BLOSSOM HILL 1.1 1.7 £2.40
2017 fell slightly from 46% to 43%, as retailers took 1.5%
HARDYS 1.0 1.6 £2.46 off the overall value of total discounts and cut volumes of the
Well-known brands play an important price of a 175ml glass among the top 10 As growth areas like Food for Tonight, FETZER 0.8 1.3 £2.50 most popular Temporary Price Reduction (TPR) promotions
role in the migration of consumers from brands was more than £1 less than the Perfect For… and No and Low introduce by almost 10%.
OLIVER & GREGGS 0.6 0.9 £2.62
one Wine Nation segment to another. In overall average, suggesting that value is new, unfamiliar products to the market, The only promotions to see an increase in volume were
CONCHA Y TORO 0.5 0.5 £3.34
the early stages of their wine drinking becoming less of a driver for consumers it is the known brands that are most Multibuys, as Y for £x offers and Meal Deals had volumes cut
ECHO FALLS 0.4 0.7 £2.34
life, as Newbies or Strong Prospects, the drinking out. likely to succeed in this space and we by 15.9% and 1.7% respectively. Discount values did increase
familiarity and reliability of the brand expect to see a shift back towards the FOOTSTEPS 0.4 0.6 £2.92
in those promotional categories, by 2.5% and 2.4% respectively,
gives buyers confidence and encourages bigger brands that will be leading INVENIO 0.4 0.5 £3.39 but it was Multibuys that received the biggest push, with a
them to start exploring other varietals. the way. small increase in discount value but a 26% rise in volume.
Overall on-trade price per 175ml was £3.79
Later in the journey, when knowledge Multibuys are more likely to appeal to the Experts, Engaged
and interest are higher, the brands TOP 10 OFF-TRADE BRANDS Source: CGA Explorers and Routiners, especially when buying for everyday
play less of a part in terms of building BY VALUE SHARE occasions, while lower volume consumers like Newbies and
confidence but can still provide the Value share% Volume share% Price per 75cl
Strong Prospects are more likely to go for price reductions
engagement to introduce consumers to 5.3
because they usually buy only one bottle at a time. The fall
HARDYS 5.0 £5.24
new styles or formats. in TPR volumes is further reflection, however, that value is
ECHO FALLS 3.0 3.3 £4.95
becoming less of a driver and shoppers are more prepared
“ Value is becoming
In 2017, the leading brands lost BLOSSOM HILL 2.8 2.8 £5.49 to buy wine off promotion.
volume across the board and private BAREFOOT 2.6 2.4 £6.06
label gained share of both volume and
value, as consumption fell and spend
MCGUIGAN 2.6 2.7 £5.34 less of a driver and VOLUMES ON DISCOUNT VALUES
increased. The average off-trade spend
CASILLERO DEL DIABLO 2.2 1.9 £6.32 shoppers are more PROMOTION
on a 75cl bottle of still wine was £5.56, YELLOW TAIL 2.0 1.8 £6.18
prepared to buy wine Promo type 2017 (,000L) Change% Promo type 2017 (,000L) Change%
off promotion ”
marginally less than the average price GALLO FAMILY VINEYARDS 1.9 2.0 £5.44 TPR 218.834 -9.6 TPR 28 -10.0
of £5.67 among the top 10 brands. CAMPO VIEJO 1.8 1.5 £6.91 MULTIBUY 52.544 +26.1 MULTIBUY 28.6 +28.2
In the on-trade, however, the average ISLA NEGRA 1.8 2.0 £4.84 Y FOR £X 34.130 -15.9 Y FOR £X 21.2 +13.0
MEAL DEAL 23.820 -1.7 MEAL DEAL 46.0 +5.5
PRIVATE LABEL 24.1 26.6 £5.03
Overall off-trade price per 75cl was £5.56 Source: Nielsen Scantrack Source: Kantar Worldpanelc a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 25
“ More than a fifth of
Category
These occasions often happen midweek, They will welcome the opportunity to
UK adults drink 250ml when consumers are busy and stressed try wines they might not normally
or less of wine per and looking to unwind with their partner, stretch to in 75cl bottles, and to buy
occasion ”
but moderating their consumption. They their favourite wines more frequently
don’t want to drink a 75cl bottle between due to the lower price point.
vision
LightSpeed / Mintel report 2016 them but feel the wine will be wasted if In order to successfully target these WINE DRUNK
they leave some in the bottle. segments, 50cl has to fulfil certain
criteria. First, the product should be a
ON A TYPICAL
The opportunity, therefore, is to offer
wine in 50cl bottles. This is in line with trusted brand or varietal to make their OCCASION
With wine consumption falling that adults drink, both alcoholic and We categorised nine drinking
the ‘Perfect for…’ strategy (see over), choice easy. As shoppers are not currently
but spend increasing, the drivers non-alcoholic, to understand where needstates, from wanting to stay in
where the packaging is designed to thinking about it, wine must be positioned
for growth will be bringing in new wine sits within the attitudes of the control (often with no or low alcohol) to
make the consumer’s decision as easy as outside the wine aisle, ideally by the
consumers, creating new occasions wider adult market. partying and letting loose with friends.
possible, and strongly targeted to catch ready meals, to target the ‘Food for
and encouraging trade-up to premium For two of these needstates consumers
the rise in shopping missions for Food for tonight’ mission, and it should come with
prefer wine to any other choice of drink:
brands, to drive penetration, frequency Tonight, as covered on page 19. the message ‘Perfect for…a midweek
+23.7%
and spend respectively. This requires ● Meal enhancement meal with my partner.’
● I DO NOT DRINK WINE
▼
There are a number of consumer ● 250ml OR LESS
a good understanding of the whole Relaxing with my partner
●
benefits to the 50cl offer: ● 251ml - 400ml
potential wine buying population and
These occasions are predominantly ● Just enough for two (no wastage) ● 401ml - 550ml
their needs in order to identify the THE BIGGEST GROWTH IN midweek evenings at home, when
Easy to carry home THE 50CL FORMULA ● 551ml - 750ml OR MORE
incentives that will capture newcomers OFF-TRADE VALUE SHARE IS IN THE
drinkers want to maintain control over the
●
and derive greater value from existing £7.00-9.99 BAND Lower price point
number of drinks and amount of alcohol ●
FOR DRINK AT THE
wine shoppers. they consume. Suited to the occasion
39%
● END OF THE DAY AND
INFORMAL
A survey commissioned by Accolade The downturn in consumption is
This insight, when combined with Wine As well as satisfying the need for EVENING
Wines at the end of 2017 gathered Nation, is enabling us to define clear reflected in the fact that more than a fifth moderation without wastage, the lower STRONG MEAL
PROSPECTS
information from 5,511 consumers consumer types and their ‘needstates’ of UK adults drink 250ml or price point encourages consumers to trial AND ENGAGED BUYING ON
less of wine per occasion. That IMPULSE, FOR OF WINE DRINKERS WOULD DRINK
on a specific drinks occasion that – the motivations and occasions that and trade up to better quality wines when EXPLORERS
TONIGHT WINE AT HOME MORE OFTEN IF THERE
occurred within the previous three influence why, when, where, with whom makes the standard 75cl bottle they want to treat themselves, against the WAS A WIDER RANGE OF SMALLER-
and with what (ie food or not food) impractical for the most popular need to unwind at the end of the day.
months. Extending the scope beyond SIZED BOTTLES
they drink. With this deeper level of wine drinking occasion, the This will appeal particularly to Strong
Wine Nation, this research captured
50%
understanding we are able to identify drink at the end of the day. Prospects and Engaged Explorers, who are MID-TIER 50CL SCREW-
lighter drinkers - potential converts to BRAND CAP BOTTLE
more regular wine consumption - and behavioural patterns that can help us looking to broaden their wine knowledge
gathered data for all cold beverages predict more accurately the influences and are prepared to pay higher prices if
and strategies that could drive they feel they’re getting good value. OF WINE SHOPPERS WELCOME
penetration, frequency and spend. SUGGESTIONS OF CHEAPER WINES IN
THEIR FAVOURITE STYLE
Source: Mintel: Still, Sparkling and Fortified Wine, UK, October 2016c a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 27
Category
BRAND EXTENSION
AC
CO
H OW LOW CA N YO U G O ?
The rise in spirits sales presents an
interesting opportunity for trusted
LA
DE
wine brands to branch out into other
W IN
vision
categories. Our research has identified the
ES
CONVENIENCE key characteristics and qualities sought
from a drink. This enables us to translate
SHOP VALUE
these characteristics from favourite wines
PERFECT FOR… SHARE into a category such as vodka, with
the brand creating the connection that
The trending Food for Tonight mission,
persuades consumers to try it.
the Replenishment Shop and the Specific
Jack Daniels and Stella Artois have
Wine Shop are more likely to take place
both moved into cider and Accolade
in convenience outlets. Both quick and
Wines made a similar move
local, these impromptu missions are an
with Echo Falls Fruit
opportunity to catch consumers with
Fusions. Having found
inspiring formats and eye-catching offers.
that Echo Falls drinkers
When they come to choose wine for AC
CO are big consumers of
any occasion, most consumers want the vodka, we explored this
LA
process to be made easy. The ‘Perfect for…’
DE
idea further in October
proposition short-cuts a major aspect of
W IN
2017 with the launch
33%
the buying decision by presenting wine in of Echo Falls Summer
CONVENIENCE
ES
a format that is demonstrably suited to the Berries Vodka.
occasion. Just as the 50cl bottle is suited SHOP VOLUME
to the drink at the end of the day, larger SHARE OF ADULTS DON’T DRINK WINE
formats are perfect for picnics, sporting
20%
events and other outdoor occasions, as
shown by the striking rise in value sales of
still wine in 1.5l serves - up 7.3% compared
to 2.6% for the total market. This has been
ARE TEETOTAL
widely reported as a magnum boom but
much of the 1.5l category is made up of THERE IS A LARGE AND GROWING
Wine on Tap (wine boxes), which is POTENTIAL MARKET FOR NO AND LOW
driving growth. ALCOHOL WINE
Sources: Nielsen Scantrack / CGA / Wine Nationc a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 29
Pricing, tax &
legislation
TAX ON WINE AVERAGE OFF- AVERAGE ON-
(per 75cl, as of 13 March 2017) TRADE PRICES TRADE PRICES
Duty(£) YoY% (Price per 75cl) (Price per 175ml)
STILL WINE 2.16 +3.8 2017 Change(£) 2017 Change(£)
UK drinks landscape SPARKLING WINE 2.10 +4.0 TOTAL STILL WINE 5.56 0.20 TOTAL STILL WINE 3.79 0.19
5.5% - 8.5% abv
SPARKLING WINE 2.77 +3.7 WHITE 5.50 0.19 WHITE 3.71 0.20
8.5% - 15% abv
2017 began with the average price of indeed risen in the off-trade. This is to THE EFFECT OF MINIMUM RED 5.77 0.23 RED 4.02 0.22
a 75cl bottle of wine rising above the be expected as prices inflate but there is FORTIFIED WINES 2.89 +4.0
UNIT PRICING ROSÉ 5.05 0.16 ROSÉ 3.30 0.00
£5.50 mark for the first time in UK evidence that wine drinkers are looking
history. The effect of Brexit – pushing upmarket in their choice. By looking Looking ahead, the postponement of
the Budget until the autumn means no AUSTRALIA 5.39 0.24 FRANCE 3.96 0.21
down the value of the pound and at value share per price band we can
further tax rises for a few months but ITALY 5.12 0.19 ITALY 3.78 0.09
driving up the cost of imports – was to see that value has actually fallen in the
Brexit is likely to continue to push import
send wine prices up by 3% in the 12 bottom three price bands, including FRANCE 7.00 0.35 AUSTRALIA 3.44 0.24
prices up. Meanwhile, the industry is
weeks to the end of 2016, compared to the most popular £4-4.99 and £5-5.99 grappling with the challenge posed by the USA 5.64 0.23 USA 2.89 0.09
1% over the previous two years. Then bands, but risen in the next three impending introduction of Minimum Unit CHILE 5.43 0.11 CHILE 3.57 0.19
A 75cl bottle of wine with an ABV
in March the Chancellor added another bands, with a 23.7% value increase in Pricing (MUP) in Scotland. of 14% amounts to 10.5 units. At a SPAIN 5.28 0.08 SPAIN 4.76 0.04
8p in duty with the biggest tax increase the £7-9.99 band. On 15 November 2017 the UK Supreme minimum price of 50p per unit, the lowest SOUTH AFRICA 4.90 0.14 SOUTH AFRICA 3.67 0.16
since 2013. This trend is echoed somewhat in the Court declared lawful the Scottish permissible price for that bottle will be NEW ZEALAND 7.20 0.07 NEW ZEALAND 4.90 0.29
Duty on wine has risen by 50% in on-trade performance of New Zealand Parliament’s intention to impose a £5.25. This will affect wines at the value
ARGENTINA 6.13 0.37 ARGENTINA 4.01 0.60
the last 10 years, from £1.46 on a 75cl wines. In 2017, New Zealand overtook minimum price of 50p per unit of alcohol. end of the price scale, notably own label
bottle of still wine in 2008 to £2.16 Spain as the highest priced origin in This legislation will now come into force and bigger pack sizes. It may also affect GERMANY 4.40 0.14
in 2017. While the wine industry has the on-trade, at an average £4.90 for on 1 May. It is not a tax but an enforced the relative price of reds versus whites,
charge, designed to curb excessive reds tending to have a higher alcohol £4.19 £4.33 £4.49 £4.74 £4.98 £5.24 £5.37 £5.37 £5.35 £5.56
tried to absorb the rising costs as much a 175ml glass, yet sold 6.7% more
drinking of low-priced alcohol. As such, content. So MUP will certainly pose a
as possible in its pricing, the effect is volume while also achieving the best
its effect will not be felt on wine as much challenge for the wine industry - and if
inevitably being seen in the shops, bars value gain of 13.3%. Evidently price is
as it is on other beverages, but there will the legislation is later rolled out across the
and restaurants. not dissuading customers from buying still be an impact, not least because of the whole of the UK, as has been suggested, 44% 43% 43% 43% 43% 43% 43% 43% 43%
46%
The rising prices have hit sales quality when the product is right. range in alcohol content in wine. the impact will be magnified.
volumes but values have held, and 57% 57% 57% 57% 57% 57% 57% 57%
54% 56%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sources: Nielsen Scantrack / CGA / HMRC
www.gov.scot ● DUTY & TAX ● WINEc a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 31
Wine Harvest
CALIFORNIA SOUTH AFRICA
The 2017 crush was slightly down on that of 2016 at somewhere A severe drought, which has lasted four years, threatened to
between 3.9 and 4.0 million tons, due to high temperatures decimate South Africa’s 2017 crop but, at approximately 1.1
Report
during the growing season, but the quality was good. California billion litres, it was up on 2016, thanks to some astute water
has an ample supply of red wine for export and prices are stable, management in the bulk wine areas. However, with the drought
but Chardonnay and Sauvignon Blanc are in tighter supply. continuing into 2018, the likelihood of South Africa replenishing
its depleted stocks this year looks slim.
CHILE
FRANCE
overview
Following the poor harvest of 2016, brought on by the effects of
El Niño, Chile experienced an even lower yield in 2017 of 949.2 In August, severe heat and water shortages brought predictions
million litres, doing nothing to alleviate the inflated prices. The of the smallest harvest France had ever experienced: 37.2 million
2018 harvest looks better at an estimated 1.1 billion litres, but hectolitres. By October that estimate had fallen to 36.9 million
The last nine months have seen some Hopes that South Africa would bastion of stability in global pricing that’s still low by pre 2016 standards. hectolitres – an 18% drop on the five-year average. Bordeaux
dramatic changes in the global wine continue to meet this demand were terms - it’s just about the only origin yields were down 33% but the quality was high. This year France
market, due to falling bulk wine dashed by a severe drought, which has that hasn’t seen significant price SPAIN is on course for a better harvest.
supplies, brought about by a round of left the country on course for a 2018 increases and an adequate supply
A drier than average 2017 saw a harvest of 18-20 million
adverse weather conditions, which have vintage that’s 20% down on last year. following a decent harvest in 2017 is
hectolitres in Spain’s bulk wine producing region of La Mancha,
AUSTRALIA & NEW ZEALAND
had a domino effect around the wine Australia and New Zealand offer likely to prompt renewed interest in its
down from 24-25 million in 2016. The damage caused to the The 2017 crush in Australia was 1.93 million tonnes, an increase
growing world. some relief but not much. Australian exports, particularly Cabernet. vines by the drought is expected to restrict the 2018 harvest to of 5% on 2016, driven by a rise in reds of 12%. This year’s crop
A particularly poor harvest in Chile wine is being imported into China at an In global terms the last nine months average at best and prices, which rose in 2017, may well remain looks like being average at best. In New Zealand the crush was
in 2016 put pressure on stocks, which unprecedented rate - up 63% year on has seen a drastic swing from a buyer’s high for a while. down 9% on 2016, with Marlborough down 6% at 302,396
was exacerbated in 2017 by one of the year - meaning there’s not as much as to a seller’s market. As a consequence, tonnes. This year heavy rain has struck the North Island late in
poorest harvests that Europe has seen usual for the rest of the world. And the the focus is shifting towards premium ITALY the piece but Marlborough growers are quietly confident of an
for years. Heavy frost in northern Italy 2017 harvest in New Zealand was down, wines and the opportunity to put value improved harvest.
and a combination of frost and drought meaning prices were up. back into the category. Heavy frosts, particularly in the north of the country, impacted
on Pinot Grigio and Prosecco varietals, reducing yields by an
in Spain saw stocks dwindle and prices An enthusiastic market for New Our global reach and relationships
estimated 23% on 2016 and pushing prices up by more than
climb, sending buyers racing to South Zealand Sauvignon Blanc is the US, with suppliers put us in a position to
20%. This year there should be no problem with lack of ground
Africa to buy up stocks of 2017 vintage which is in short supply of both weather the storm in terms of ensuring water, following plenty of snow and rain over winter, and Italy
white wine and pushing prices up Sauvignon Blanc and Chardonnay. adequate supplies to sustain our looks on course for a better harvest, although the risk of frost
there by 20%. Otherwise, however, California is the brands and our customers. will remain until early May.
Source: Ciatti Global Market Reportc a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 33
News
from Accolade Wines
The next two years will be potential of those segments of the Wine LITTLE AND LARGE CONTINUING SUPPORT OF As well as marketing in cricket
a period of exploration for Nation population. It’s an audience grounds during 2017, Hardys ran an
This spring we release our new range ENGLISH CRICKET
Accolade, as we build on our that also enjoys drinking vodka, so the on pack promotion where consumers
of wines in 50cl, perfect for sharing Hardys’ partnership with England Cricket,
pre-eminence in the branded obvious strategy on paper was to release could win cricket tickets every 24
in the evening. By offering customers which began in 2014, was renewed in
wine market to release a a vodka under the Echo Falls brand. hours. This was communicated with a
wine in a bottle that suits their volume 2017. The three year sponsorship deal will
range of innovative products, In reality, it was much more of a leap. limited edition cricket front label and
requirements, we expect to grow the see Hardys as the official wine partner for promotional neck flag. Sponsored TV
designed in response to the Nevertheless, we sensed an opportunity midweek wine-buying category, reversing all England Cricket events and celebration coverage, PR and social media campaigns
changing consumer habits and went for it. the recent trend. Among the 50cl range matches. We see cricket as a natural reached more than 2.5 million people.
revealed in our research. The response was phenomenal, you’ll find Kumala Reserve Chenin environment for the brand, with its long
Blanc and Shiraz, Hardys William Hardy The current agreement takes in the
Blurring brand categories, particularly among women aged 18-24, history, steeped in heritage and tradition, highly anticipated 2019 Ashes series, as
Langhorne Creek Shiraz and Chardonnay and the sport provides Hardys with the
as Stella Artois did when with the promo video getting nearly well as this summer’s home test series
and Mudhouse Sauvignon Blanc white opportunity to increase its brand exposure
it moved into cider, is a trend that is 379,655 views and 46,812 reactions, against Pakistan and India, where Hardys
and rosé. with UK fans.
set to grow and last year we decided comments and shares on social media. will continue the great work with a full
At the other end of the format scale We are working at all levels of the
to test the market with one of our One excited follower on Twitter programme of marketing activities.
comes Festifalls, our Wine on Tap dual game, championing grassroots cricket
most popular brands. Echo Falls is a proclaimed: ‘Echo Falls Summer Berries
wine box, perfect for festivals, picnics, across the country up to using the profile
very approachable, fruity wine, and Vodka is the best thing that’s happened
barbecues and other outdoor events. of Stuart Broad as our ambassador,
a favourite with Newbies and Strong all year x’. We are now exploring other Wine on Tap is a more enticing bringing the Hardys brand closer to the
Prospects. As such, it represents an opportunities to blur our leading presentation of the familiar wine box sport’s supporters.
excellent vehicle for us to leverage the brands into other drinks categories. and the larger format is aimed at
providing customers with a simple,
reliable choice from a brand they
know and trust.c a t e g o ry d ev elop m en t & insight w w w .a cco la d e - w i n e s .co m | UK r ep or t 2 0 1 8 35
“ Accolade Park is a
truly magical place to
go to work every day ”
Richard Lloyd, General Manager,
European Operations and Supply Chain
ACCOLADE PARK Guiding all elements is our bespoke
Lean Business Model which ensures we
Fundamental to our planned initiatives understand and deliver value in the eyes
is our unique packaging facility, Accolade of our customer. Underpinning the pillars
Park. Laid out over 80,000sq.m in Bristol, is The Spirit of Accolade Park which
it is the largest wine warehouse, develops and connects the talents of all
distribution and innovation centre in that work there.
Europe, employing 500 people and
We transfer our wine expertise into a
producing the equivalent of 25 million 9L
truly diverse product and format range.
cases per year. Customers benefit from the
PREMIUM AND FINE WINE This adds some of the rarest and most Continued investment means the capability
flexibility to deliver single bottles to full
sought after New World wines to our to pack multiple formats, from pouch,
loads, seven days a week.
Accolade Wines has always had a prestige collection, with a particularly PET, 187ml, 250ml, 375ml, 50cl, 75cl and
strong culture of fine wines and winery As we respond to changing consumer Wine on Tap from 1.5l to 10l. The bottling
strong Australian contingent including
ownership, with prestige labels like demands, Accolade Park is our trump card. lines are capable of turning out 1,200
Petaluma, Stonier, St Hallett, Croser
Houghton, Grant Burge, House of Arras The facility operates on the basis of four bottles of wine every minute; in addition,
and Reynella. FWP wines will be priced
and Hardys’ own ‘Eileen Hardy’ range strategic pillars: Agility, Diversification, it’s environmentally friendly, utilising
between £10 and £80 and part of our
among our top-end portfolio. In February Differentiation and Cost & Cash. Our sustainable initiatives throughout the
marketing focus will be to raise
2017 we made a significant addition to product and service offering coupled complete supply chain.
awareness of the regional diversity of
this range when we bought Fine Wine with our ability to diversify at speed,
the wines of Australia, a country
Partners (FWP) from Lion Nathan, and differentiates us from the competition.
comparable to the size of Europe,
this January we launched FWP in the UK with very diverse climates, soils and
and Ireland. winemaking styles. There is a clear
appeal in this for the Experts and
Engaged Explorers.ACCOLADE-WINES.COM
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