Wine and Champagne to emerge in UK on-trade

Wine producers have "significant" opportunity to grow their sales in the UK on-trade, new research has shown.

A poll of 500 outlets carried out by licensed trade consultancy CGA Strategy, on behalf of the Wine and Spirit Trade Association (WSTA), found 57% of the UK's bars, restaurants and pubs have 10 or less wines to choose.

Only 12% have a choice of more than 25 wines.

Although the on-trade is dominated by well-known brands such as Stowells of Chelsea and Blossom Hill, which account for20% of sales, over half (52%) of venues don't offer sparkling wine or Champagne.

In the north east, the figure of those failing to sock the bubbly option is 69%.

"Licensees need educating on the revenue potential for wine
alongside food. Better point of sale marketing is needed," said the analysts behind The Wine Market report.

"Many venue operators do not know how to construct a wine list and the appropriate pricing ladder. More professional advice would help to provide justification for offering higher quality wines," they said.

Two-thirds of all wine to the ontrade is distributed by three
companies: TBS Waverley, Booker and Matthew Clark.

But there is a "proliferation of suppliers with potential to play a significant role in category development by bringing
more variety into the market place," the research added.

White wine dominates the category sold in pubs, bars and
restaurants, with 79% reporting it as the most popular choice.

The report also found Pinot Grigio to be the most popular tipple with bars in three regions: London, Yorkshire and the north east.

Other varietals, such as Viognier, "have the potential to increase interest in the white category," the report said.

Consumers prefer New World wines to Old World, with Australia topping the league with 24% market share.

"Many French wines still can't use varietal labelling, and this is seen as a barrier to some consumers who lack the knowledge or understanding to make an educated choice," the report explained.

WSTA chief executive Jeremy Beadles said: "This research shows that changes in the market place are creating opportunities for wine producers, and there is clearly the
scope to offer new and different wines to consumers - in particular, a wider range of sparkling wine."