UK consumers, ?addicted to discounts? ? Winesur

The United Kingdom is one of the European Union?s smallest wine producers, but one of the world?s largest importers. Currently, over 50 countries send wines to this market. Likewise, this reality is translated into a fierce competition among labels, especially in supermarkets who offer the best discounts.

Based on these premises, smaller independent retailers offer interesting alternatives. ?We would like to see a more dynamic approach to wine sales without the focus on the constant promotional offer. This is not the only way of encouraging customers to buy wine?, stated Becca Reeves, wine buyer at Laithwaites.

Moreover, Alun Griffiths MW, wine director at Berry Bros. & Rudd, highlighted: ?consumers should be more adventurous in their wine buying habits instead of choosing the same brand on several occasions, and a greater emphasis should be laid on the product making.?

Wine is in vogue in the United Kingdom, but consumers are addicted to discounts, influenced by a serious recession and a considerable rise in taxes. This addiction to price promotions is a long-standing trend.

According to a report made by Mintel Food & Drink, 55% of all Britons buy wines depending on their best discount. ?This fact causes a controversy over producers, as for them sales, making and production revolves around quality, and thus, the price is according to the wine-making process. So, wine drinkers? decisions should be more influenced by quality and varietal composition than price?, highlighted the report.

Besides this ?addiction to discounts?, the good news is that experts have underlined that this is not a long-term trend, but a consequence of this economic situation.

Furthermore, in relation to discount ferocity, the Government has taken steps to stop this situation. Last year, it put a ban on alcoholic drink sales under the rate of duty and VAT. This measure was introduced because a minimum price per unit is the most effective way of reducing consumption and tackling social and health problems related to abuse of alcohol.

Voices from Argentina

According to Alberto Arizu (Jr.), president of Wines of Argentina, in an interview with WineSur, ?British consumers do not drink wines over ?7-12. On this basis, Argentina is very well positioned, considering that our portfolio is rich in this price segment.?

In addition, Leandro Bast?as, Export Manager at Trivento winery, said: ?United Kingdom is one of the world?s most competitive markets and will remain so. Definitely, the purchase is greatly influenced by promotions. As someone once said, UK consumers are ?bargain hunters?, an appropriate term to describe them, in my opinion. I think this will continue in this way, especially regarding supermarket sales (70% and 80% of the total volume).?

However, he added: ?Argentina should focus on Premium wine sales in the on-trade channel as well as to independent retailers. This strategy may represent an opportunity, taking into account the loss of competitiveness we are suffering as industry.?

Lucas Lowi, Business Development Manager at Mo?t Hennessy Estates & Wines, also thinks that United Kingdom is a highly competitive market where the large chains have a great buyer power. ?Nevertheless, we are aimed at creating long-term brands. For this reason, in the case of Terrazas de los Andes, we focus our efforts on developing the on-trade, with high-quality exponents over ?20. In short, we are looking to continue the guidelines of the Louis Vuitton Mo?t Hennesy group and the success of its Cloudy Bay.?

On the basis of this context, Argentine wineries and the United Kingdom are wondering how to cope with such economic uncertainty.

Source: http://www.decanter.com/news/wine-news/529114/uk-wine-drinkers-are-discount-junkies-says-research

Tags: discounts, UK consumers

Source: http://www.winesur.com/news/uk-consumers-addicted-to-discounts

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