by Charles Metcalfe
A survey by the International Wine & Spirits Record (IWSR) commissioned by Vinexpo recently announced that the British will be Europe s leading spenders on still and sparkling wine within three years. The IWSR has an excellent record
By Charles Metcalfe
of in-depth surveys, particularly when forecasting trends in consumption. And the press release that announced the results of the research makes it clear that the British will not be Europe s biggest drinkers. France, Italy and Germany will all consume more than the UK. The British just have to spend more on their drink.
This is explained by rises in the amount of wine drunk in the UK, the trend to drink better quality wines, and the higher tax paid per bottle . As the British wine trade is discovering, rises in wine sales are modest at present. The IWSR survey suggests UK consumption will grow at an average rate of 3.7% over the ten years from 2001 to 2010. However, if their estimated wine consumption forecast of 28.5 litres per head by 2010 is correct, that means growth from 26.2 litres average (from WSTA statistics) in 2004 will be less than 1.5% per annum. Not exactly exciting growth.
The tendency to drink better quality wines is based on a worldwide sales comparison of wines sold at two price points, US$5 and US$10. Back in Jun 2006, when the research was concluded, US$5 was worth only £2.84. Thanks to margins increased by retailers and excise rates per bottle creeping up from one year to the next, the number of wines on UK shelves obtainable for £2.99 has diminished dramatically over recent years. Hardly surprising, then, that IWSR found sales of wines at more (our italics) than £2.90 accounted for nearly half of volume in 2005, a rise of 40% since 2001 , and there had only been a 12% increase in sales of bottles under £2.90. AC Nielsen s average UK retail price per bottle of wine was already up to £3.84 in 2005, and rose to £3.93 in 2006.
So, rather than hyped headlines along the lines of Brits will be Europe s top boozers , the story seems more Brits pay more to drink slightly less wine than Italy, France and Germany . But that doesn t have the same ring, does it?
