While the Government faces fresh calls from health campaigners for minimum alcohol prices, Nielsen data seen by The Grocer this week shows off-trade wine sales are already falling.
According to figures for the 12 months to 21 March 2009, year-on-year volume wine sales fell by 1% in the off-trade - a drop of 12 million bottles.
But there were even larger falls in the independent and bulk sector as duty hikes, recession and supermarket promotions took their toll. C-stores and forecourts sold 6% fewer bottles as sales value fell 1%, while off-licence chains experienced a 9% downturn in volume and 6% drop in sales value.
Wine prices have been under pressure over the past year as the pound fell, the cost of grapes rose (particularly in Australia) and the Government raised duty by 17.5% on alcohol in the Chancellor's pre-Budget report last November.
Describing this year's performance as the worst in almost 20 years, Brand Phoenix director Steve Barton said: "Duty is now having a direct impact on what people are buying. People are buying less wine in the on-trade but also, for the first time, less wine in the off-trade as well."
There are fears that this year's Budget - due to be delivered on 22 April - will include further tax hikes on beer, wine and spirits as the Government faces renewed calls to tackle cheap booze.
The Royal College of Physicians and the Royal College of Nursing this week called for minimum unit pricing, a move fiercely resisted by the trade.
"There is an accepted view that alcohol consumption is on the increase and retailers are part of the problem," said ACS public affairs director Shane Brennan. "Now, with evidence that consumption is decreasing, it's clear that now is not the time for the Government to be imposing more cost or regulation on retailers."
According to the Nielsen data, sales of Constellation's Hardys brand fell 17% and volume dropped 21%. Its Stowells brand was down 26% by volume.
"Constellation Europe has been warning the Government for 12 months that the wine trade is reaching a tipping point, with continual decline in margins and, in the past few months, negative growth for the first time," said European president Troy Christensen.
Supermarkets have battled the sales downturn through promotional activity. The number of featured-space promotions rose by 23% to 6,370 last year, according to data from promotion tracker Assosia.
Deals such as Asda's 3-for-£10 multibuy propped up supermarket volumes - up by 1% year-on-year, while value (largely boosted by duty) was up 6%. But these may have made the situation worse for the rest of the sector.
"Aggressive wine promotions from the supermarkets can't help but have a negative effect on the independent sector," said Assosia MD Kay Staniland.
According to figures for the 12 months to 21 March 2009, year-on-year volume wine sales fell by 1% in the off-trade - a drop of 12 million bottles.
But there were even larger falls in the independent and bulk sector as duty hikes, recession and supermarket promotions took their toll. C-stores and forecourts sold 6% fewer bottles as sales value fell 1%, while off-licence chains experienced a 9% downturn in volume and 6% drop in sales value.
Wine prices have been under pressure over the past year as the pound fell, the cost of grapes rose (particularly in Australia) and the Government raised duty by 17.5% on alcohol in the Chancellor's pre-Budget report last November.
Describing this year's performance as the worst in almost 20 years, Brand Phoenix director Steve Barton said: "Duty is now having a direct impact on what people are buying. People are buying less wine in the on-trade but also, for the first time, less wine in the off-trade as well."
There are fears that this year's Budget - due to be delivered on 22 April - will include further tax hikes on beer, wine and spirits as the Government faces renewed calls to tackle cheap booze.
The Royal College of Physicians and the Royal College of Nursing this week called for minimum unit pricing, a move fiercely resisted by the trade.
"There is an accepted view that alcohol consumption is on the increase and retailers are part of the problem," said ACS public affairs director Shane Brennan. "Now, with evidence that consumption is decreasing, it's clear that now is not the time for the Government to be imposing more cost or regulation on retailers."
According to the Nielsen data, sales of Constellation's Hardys brand fell 17% and volume dropped 21%. Its Stowells brand was down 26% by volume.
"Constellation Europe has been warning the Government for 12 months that the wine trade is reaching a tipping point, with continual decline in margins and, in the past few months, negative growth for the first time," said European president Troy Christensen.
Supermarkets have battled the sales downturn through promotional activity. The number of featured-space promotions rose by 23% to 6,370 last year, according to data from promotion tracker Assosia.
Deals such as Asda's 3-for-£10 multibuy propped up supermarket volumes - up by 1% year-on-year, while value (largely boosted by duty) was up 6%. But these may have made the situation worse for the rest of the sector.
"Aggressive wine promotions from the supermarkets can't help but have a negative effect on the independent sector," said Assosia MD Kay Staniland.
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