Small Brands vs. Big: Who’s Winning the Battle for UK Wine Consumption
Since the craft beer revolution began in the UK in 2002, we now have 800 craft breweries appealing to the consumer desire for a more artisanal product. A similar trend is starting to emerge in the wine industry, with key retailers cutting brand listings by up to 30%, and replacing with bespoke retailer exclusive labels.
As a wider variety of consumers are broadening their drinks repertoire, the wine industry must work harder to engage with consumers in a similar way to the spirits and beers categories.
Kingsland Drinks’ research shows that the smaller brands that offer consumers something different and appeal to them emotionally are engaging with a different consumer base to the mainstream brands.
Spend on Private Label wine has increased by 4.2% YoY compared to a decrease of -1.3% for Branded Wine. When looking at changing spend of different demographics, we can see the age group driving the increase in Private Label Wine is those aged 28 – 34 who have increased their spend by +8.5%, compared to a decline of -8.5% in the same age group in Branded Wine.
The branded decline in this age group is also clear when looking at some of the biggest brands individually. For example, spend on Hardy’s Wine has decreased by -17.2% for those aged 28 – 34 years old. (Data YoY figures are 52 weeks to 29/01/17)
This is a topic about which Andrew Peace, the founder of Andrew Peace Wines feels passionately. His range of wines from his vineyards on the banks of the River Murray in Piangil, Victoria is rapidly increasing in popularity in the UK, in particular with consumers who engage with both the approachable style of wines and the man behind the family-owned winery.
Pascual Toso is also finding increasing success with its premium range of Mendoza wines, in particular Malbec and Cabernet Sauvignon. Their history and heritage of 125 years along with a wine style created by the world-acclaimed winemaker Paul Hobbs have had great appeal with knowledgeable consumers looking for a premium, less mainstream brand.
Kingsland Drinks imports both of these brands and shares the view that whilst big brands will continue play an important role, we will see significant growth in less mainstream brand wines and retailer exclusives that can appeal different consumer roles and occasions.
To meet with Andrew Peace, Felipe Stahlschmidt of Pascual Toso or Neil Anderson of Kingsland Wines at Prowein please contact Holly Ward, The Forge Communications.