Tomorrow’s Wine on Tomorrow’s Table

Sarah Jane Evans MWFDIN Seminar 14 July 2011

Five key themes

• The consumer and (her) cash• The threat of binge drinking• The impact of the eco-warriors• Where is the innovation?• The thirst for knowledge

• (plus tips on the tasting)

1: The consumer (a)

• Off-trade: 72% of sales through (few) grocers• Average price in off-trade Dec 2010:– £4.49 still wine– £5.97 sparkling (kept afloat by cheap Cava)– £5.20 fortified

• Lack of choice: UK no longer the number one market for exporters; concentration of the industry

The consumer (b)

• Some people dropping out of wine drinking altogether in the recent economic crisis:– In past 12 months a 2% fall in volume (1.8 million

12-bottle cases)– Under £4 sector has dropped by 10 million cases

(Nielsen)

The consumer (c)

• Leading wine countries:Australia (Hardys), USA (Blossom Hill, Echo Falls), Italy (Pinot Grigio), France, SA, Chile, Spain, NZ

• Rosé blossomed, and has now peaked• Ditto Prosecco, now that prices are rising• Chardonnay still most popular white• Women dominate shopping in the grocers, men

in the high street and online

The consumer (d): the battle of the sexes on the wine aisle

• Men stay in their comfort zones, women are more adventurous.

• Women shop for communal gatherings, men for themselves.

• Men are geared toward impressing, women toward pleasing.

• Women buy wine for the short term (sharing), men for the long term (hoarding).

• Men buy on the basis of testimonials from experts, women on tips from friends and merchants.

• Women order wine by the glass at restaurants; men order bottles. (by Natalie Maclean)

2: The threat of binge drinking

Alcohol controls

• First, tobacco – then alcohol• Should wine escape the alcohol label?• Does producer/retailer control work?• Do low alcohol wines have a future?• No-alcohol: less than 0.5%• Low 0.5%-5.5% • Then 5.5% to 10% or thereabouts• Eg Traditional German whites, but also -

No alcohol

Lower

Low-ish

3: The impact of the eco-warriors

Slight influences now; which one will grow fastest?•Natural •Organic•Biodynamic•Sustainable•Carbon footprint•Health

Too clever or just in time?

Crazy?

Very British!

Your new company image

4: Where is the innovation?

• Container: bottle, bag, pouch, PET, tetra• Closure• Style• Varieties: where is the next Pinot Grigio?• Display • New origins: BRIC plus UK

From plop to click and thwack

The future’s sparkling

The future’s sparkling

5: The thirst for knowledge

• Education: another factor that sets wine apart from food

• A crucial line of defence against alcohol controls

• A way to attract the next generation• But can it be too complicated?

An easy sell, surely?

Or a step too far?

6: Tomorrow’s wine

Three ‘simple’ requirements:•Good value (a constant battle with duty)•Quality •Integrity

Thank you

sarahjane@sarahjaneevans.co.uk