Surging sales of rosé have pushed the off-trade non-sparkling wine market past the £5bn mark for the first time, according to new figures from Nielsen.
The non-sparkling wine market has grown by 6.5% to £5.04bn [Nielsen 52w/e 8 August 2009] over the past year, with volumes up 2.5%. It has significantly outperformed the overall alcoholic drinks market, which is up 5.6% in value but has fallen slightly in volume.
Much of the growth has been driven by rosé wine, sales of which were up 15%, giving it 10.7% of wine sales.
"There is no doubt about the increasing popularity of rosé," said Nielsen analyst Stewart Blunt. "Four years ago it popped up, as if it was a fad from the US, but successive strong growth says that it's here to stay and that it has a substantial following.
"We have to concede that the wine market would not be up were it not for pink wines. And just under half of them are from the US."
Blossom Hill, the UK's biggest wine brand and producer of four American rosés, is leading the way with sales up 11.5% in volume and 11.9% in value, taking it to £278.5m and 5.5% of wine sales [Nielsen 52 w/e 8 August 2009].
The brand has run extensive advertising over the past year, including a £750,000 sponsorship of Wimbledon and a £2m TV advertising campaign set in a dream-like world.
"The average price across all sizes of wine is at its highest to date at £4.28," said Blunt. "We have never spent so much money on wine in the off-trade and by the end of 2009 we should have clocked up sales of 100 million cases of wine."
A key factor in the success of still wines is the high level of promotional activity. Retailers have used deep cut promotions to encourage consumers to buy into the category, particularly three-for-£10 deals [Assosia].
The sub-category's performance contrasts sharply with that of sparkling and fortified wines and Champagne, which have seen falls in volume sales over the past 12 months.
According to Nielsen, wine equates to 37.7% of the £13.38bn off-trade alcohol market.
The non-sparkling wine market has grown by 6.5% to £5.04bn [Nielsen 52w/e 8 August 2009] over the past year, with volumes up 2.5%. It has significantly outperformed the overall alcoholic drinks market, which is up 5.6% in value but has fallen slightly in volume.
Much of the growth has been driven by rosé wine, sales of which were up 15%, giving it 10.7% of wine sales.
"There is no doubt about the increasing popularity of rosé," said Nielsen analyst Stewart Blunt. "Four years ago it popped up, as if it was a fad from the US, but successive strong growth says that it's here to stay and that it has a substantial following.
"We have to concede that the wine market would not be up were it not for pink wines. And just under half of them are from the US."
Blossom Hill, the UK's biggest wine brand and producer of four American rosés, is leading the way with sales up 11.5% in volume and 11.9% in value, taking it to £278.5m and 5.5% of wine sales [Nielsen 52 w/e 8 August 2009].
The brand has run extensive advertising over the past year, including a £750,000 sponsorship of Wimbledon and a £2m TV advertising campaign set in a dream-like world.
"The average price across all sizes of wine is at its highest to date at £4.28," said Blunt. "We have never spent so much money on wine in the off-trade and by the end of 2009 we should have clocked up sales of 100 million cases of wine."
A key factor in the success of still wines is the high level of promotional activity. Retailers have used deep cut promotions to encourage consumers to buy into the category, particularly three-for-£10 deals [Assosia].
The sub-category's performance contrasts sharply with that of sparkling and fortified wines and Champagne, which have seen falls in volume sales over the past 12 months.
According to Nielsen, wine equates to 37.7% of the £13.38bn off-trade alcohol market.
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