WSTA Market Overview

1 8 T H – 2 0 T H M A Y 2 0 1 5

T H E 3 5 T H

with data from the

WSTA Market Overview

London Wine Fair 2015 Edition

Contents

The UK Alcohol Industry

The Wine Story

The Spirits Story

A Responsible Industry

Taxation

Exclusive: IWSR Data - UK Wine data - UK Spirits data

4

8

12

16

18

22

Contents

Contents

About the WSTA

The WSTA represents over 340 companies producing, importing, exporting, transporting and selling wines and spirits in the United Kingdom.

WSTA members range from major retailers, brand owners and wholesalers to fine wine and spirit specialists, logistics and bottling companies.

We campaign for a vibrant and sustainable wine and spirit industry, helping to build a future in which alcohol is produced, sold and enjoyed responsibly.

Contents

Most popular drinks in the UK

At home

Red wineWhite wineLager

LagerCiderAle

White wineRed wineLager

In a pub In a restaurant

The UK alcohol industry is worth

£39 billion in sales


LWF2015The WSTA Market OverviewThe UK Alcohol Industry

Employment

Wine & spirits directly and indirectly support

512,000 jobs

69% of these jobs are directly dependent on the industry’s activity

+ 76,000 more through retailers= 588,000 jobs

Bars, pubs and restaurants


Wine £3.9 billion - 17.2%

Spirits £5.3 billion - 23%

RTDs £330 million - 2.4%

204,282 licensed premises in the UK and 570,044 personal license holders

£9.6 billion in sales to the on trade

£10.4 billion in sales to the off trade

Wine and spirits are worth

LWF2015The WSTA Market Overview

Wine and spirits are worth

Openings

Spirits2012-2014 Beer Wine Soft drinks

Closures

£5.4 billion

£4.2 billion

35.5%

25.2% 33.4% 23.9% 17.4%

20.4% 50.5% 15% 14.1%

of all sales in UK pubs

to UK pubs

to hotels & restaurants

With changing consumer demand there is a big change in the drinks mix of premises that are opening.

Half of all drinks sold in new pubs, bars and restaurants are wine and spirits.


120,000 bars, pubs, restaurants & hotels

The Wine StoryThe Wine Story

The UK wine market is the sixth largest wine market in the world

60% of UK adults (30 million people) drink wine


in economic activity

in total contribution to the public purse (duty, VAT, corporation and income tax)

in duty and VAT paid by consumers

in sales

£17.3 billion

£8.7 billion

£5.7 billion

£10 billion

The Wine Story

The wine industry generates

The wine industry is currently worth £6 billion to shops £4 billion to bars, pubs and restaurants

The Wine Story

600 millionbottles of wine are bottled in the UK

Wine bottles are 30% lighter than they were 7 years ago, helping cut emissions

170,000 people are directly employed in wine and 100,000 are employed in the supply chain


470

135

4.5 million

vineyards

wineries

bottles(3 x London Aquarium)

1,884 hectares

£100 million

under vine in England & Wales 2013 (2,645 full size football pitches)

value of the industry

The Wine Story

English and Welsh wine

£

The Spirits Story

1.1 billion litres were exported from the UK to foreign markets in 2013

48% of UK adults (24 million people) drink spirits

139 millionbottles of gin

58.5 millionbottles of vodka

1.2 billionbottles of whisky

LWF2015The WSTA Market OverviewThe Spirits Story

in economic activity

in total contribution to the public purse (duty, VAT, corporation and income tax)

in duty and VAT paid by consumers

in sales

£28.2 billion

£6.9 billion

£4.5 billion

£9 billion

The spirit industry generates

The spirits industry is currently worth £3.8 billion to shops £5.3 billion to bars, pubs and restaurants

The Spirits StoryThe Spirits Story

Emissions of CO2 from distillers has fallen by 94,000 tonnes since 1999taking 30,200 cars off the road

186,000 people are directly employed in spirits and 110,000 are employed in the supply chain


202 registered distilleries

Scotland

England

Wales

N Ireland

134

61

6

1

The Spirits Story

A Responsible Industry

1.3 billion units of alcohol removed from the UK market by industry

A responsible industry

130 irresponsible products removed from shelves by the Portman Group

ensured 80% of alcohol product labels contain health information

91% contain a warning about drinking while pregnant


10.1 10.19.9

9.69.4 9.4

10.811.1

1111.4

11.6

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Consumption in litres per head (+15)

19% fall in consumption from 2004 to 2014

61% of young people (11-15) have never

tried alcohol

9% of young people tried alcohol in the

last week (down from 26% in 2001)

A responsible industry

2 2 1

90% of people have heard of units (up from 79% since 1997)

Taxation

In 2014, wine and spirits contributed

£15.6 billion to the Treasury (VAT, excise, employment and corporation tax)

In 2014 wine consumers paid £3.8 billion - 36% of all alcohol duty

spirits consumers paid £3 billion - 29% of all alcohol duty

LWF2015The WSTA Market OverviewTaxation

collected across all member states

67%

43%

25%

39%

of wine duties

of sparkling wine duties

of spirits duties

of beer duties

38.2% of all EU alcohol duty collected across member states is collected by the UK Chancellor

Since 2008, wine taxation has increased 54%

Spirits taxation has increased 41%

Taxation

wine

55%tax

74%tax

vodka blended whisky

gin

76%tax

76%tax

£5.37avgprice

£12.71avgprice

£13.06avgprice

£13.05avgprice

£2.05 on a 75cl bottle of wine+VAT

£7.75on a 70cl bottle of spirits+VAT

Current UK duty tax

LWF2015The WSTA Market OverviewTaxation

Sources

The UK Alcohol Industry CGA Strategy EY HMRC Home Office WSTA Market Report Q1 2015 YouGov The Wine Story English Wine Producers EY IWSR WSTA YouGov

The Spirits Story EY HMRC IWSR YouGov

A Responsible Industry Department of Health HMRC ONS Portman Group

Taxation EY HMRC

About the IWSR

The IWSR quantifies the global market for alcohol by volume and value, and provides insight into short-term and long-term trends.

Globally, we track overall consumption and trends at brand, quality and category level for wines, spirits and RTDs, with the aim of providing data that is as accurate and detailed as possible.

Our unique methodology allows us to get closer to what is actually consumed and understand better how markets work. The IWSR researchers conduct face-to-face interviews with 1,500 companies around the world, tapping into local expertise, with further input from 350 companies.

About

Please note that the following figures are preliminary and may be subject to change

LWF2015Exclusive data from the IWSRWineAbout

UK wine sales 2010 - 2014

UK wine sales by category 2014

(000s of 9L cases)

151,474 147,129 144,290 142,489 142,150

2010

2011

2012

2013

2014

-1.2

%

-0.2

%-2.6

%

-2.9

%

-1.7

%

Light Wine

Year on Year -1%5 years -9%

Sparkling Wine

Year on Year +12%5 years +33%

Fortified Wine

Year on Year -7%5 years -17%

UK still wine sales by colour

UK still wine sales by country of origin

52,540,000 9L cases -2%

55,160,000 9L cases -1%

14,250,000 9L cases -1%

43%

45%

12%

Australia

France

Italy

USA

Spain

South Africa

Chile

New Zealand

Germany

Argentina

24,600

16,680

16,560

14,310

13,280

11,210

10,860

4,915

3,195

2,440

+1%

-4%

-4%

-4%

-1%

+1%

+1%

+8%

-7%

+3%

1

2

3

4

5

6

7

8

9

10

2014Country

000s 9L cases

Market share % change v 2013

% change

Data from the IWSR

Red

White

Rosé

LWF2015Exclusive data from the IWSRWine

UK fortified wine sales

UK sparkling wine sales by origin

54%

42%

4%

1

2

3

4

5

6

7

8

% change v 2013

Market share

000s 9L cases

Origin 2014 % change

Data from the IWSR

Italy

Spain

Champagne

Australia

France

UK

US

Other

Total

Total excl Champ.

Sherry

5,550

2,400

2,390

510

370

250

180

245

11,895

9,505

1,190,000 9L cases

930,000 9L cases

80,000 9L cases

+58%

-21%

-2%

-12%

-1%

+9%

-2%

+9%

+12%

+17%

-8%

-7%

+3%

Port

Other

Data

UK spirits sales 2014

Vodka30.3%

Flavoured spirits19.6%

Scotch whisky18.8%

Gin9.4%

Rum9.3%

Brandy5.8%

Other: US Whiskey (5.1%), Irish Whiskey (1%), Tequila (0.7%)

Vodka9,550+2.5%

Flavoured Spirits6,175+1%

Scotch Whisky5,950-2%

Gin2,975+5%

Rum2,950+5%

Brandy1,825-2.5%

US Whiskey1,600+14%

Irish Whiskey315+2%

Tequila225+5%000s 9L cases

LWF2015Exclusive data from the IWSR

Data compiled and designed by:

Selected data kindly supplied by:

www.theIWSR.com39 Moreland StreetLondonEC1V 8BB

If you have any comments, queries or suggestions please contact Antonia Fordyce

[email protected] 0207 089 3880

www.wsta.co.ukInternational Wine & Spirit Centre39-45 Bermondsey StreetLondonSE1 3XF

Data

Scotch whisky18.8%

Rum9.3%

Flavoured Spirits6,175+1%

Gin2,975+5%

Brandy1,825-2.5%

Irish Whiskey315+2%

Wine and Spirit Trade Association www.wsta.co.uk [email protected] @wstauk

Registered Number: 410660 England

Limited by Guarantee

VAT Number: GB 243 8260 60

WSTA Market Overview

Documents

Transcript of WSTA Market Overview