Private label wine prices jump 7.2%, says IRI
The average price of private label wine has shot up by 7.2% in the past year to £4.78, according to data collected by IRI.
Although private or own label wines generally come in at a lower price point than their branded counterparts, the gap is narrowing. Data from IRI put average still wine at £5.05 for the 52 weeks to February 1 2014, up 4.5% on the previous year.
The IRI data, which excludes exclusive label wines, also shows that private label wine volumes fell slightly, down 0.3%, whilst sales value of private label wine was up 6.9%.
Tim Wilson, managing director of Wilson Drinks Report, said: “The private label market is now worth about £1.2 billion, according to IRI, which puts it just above the total vodka category (£1.1 billion). We expect there to be a continued focus on private label wine, as well as exclusive label wines which are also very important for the big grocers. However, we also expect to see private label continuing to move upwards in average price, getting even closer to branded wine.”
Industry expert Mike Paul said the “old chestnut” that own-label wine is cheaper, doesn’t necessarily “hold true any more”. Paul said the move towards own brand was an obvious step for retailers who want to price how they want to and be in control of their own promotional marketing strategy.
The Co-operative’s Simon Cairns – category trading manager for wine – recently told harpers.co.uk that it is aiming to boost own label wine sales from 39.7% to 46% of its total. He said own label was increasingly popular with consumers as “buyers take great care in sourcing liquid for our own brand, that our customers clearly have the confidence to repeat purchase and drive growth”.
Sainsbury’s said its own brand still wines have grown 18% in the past year, with Champagne and sparkling up 12% and other formats up 23%. It launched 80 own-label skus in that period, and now has a total of 267.