Bottoms up

In tough times, the price as well as the choice of wine comes under the spotlight. Sheila Eggleston reports.

The simple fact that consumers have less money to spend means restaurants need to refine their wine lists to make sure it offers good value and a feel good factor without significantly affecting profit margins.

With savvy drinkers knowing more about wine from the choice offered in the retail sector, which they can enjoy at home while at the same time appreciating a good deal, what can foodservice operators do to stave off a downturn?

The challenge is to find suitable options that satisfy both tastes and pockets to win consumers back, and promote them – meal deals to highlight food and wine pairings for example.

According to Wine Intelligence's UK trends report, its survey of the retail sector showed that 69% of wine drinkers now consider a bargain and the grape variety as equally important. Both had vied for top position in the survey over the past three years, with grape variety losing out to promotions because of the credit crunch, but now they were level pegging.

The research shows that brand is also important when buying wine rising from 52% to 63% in three years, overtaking country of origin in the process.

"Wine is a familiar product for today's British consumer, despite the complexity of the category, and the typical shopper has developed a set of mental shortcuts based around grape variety, offer and brand to navigate the wine aisle," says Richard Halstead, chief operating officer at Wine Intelligence. "Putting out a decent label with a popular variety at a commercial price is only half the battle – what emotional connection can products make to win the sale?"

Against a backdrop of wine costs rising rapidly caused by hikes in excise duty, VAT and other taxes, that's a tough question for the foodservice sector.

Latest data from the Wine & Spirit Trade Association (WSTA) shows on trade volume share fell slightly (-1%) yet the value share rose by 10% in the year to April 16 2011.

The WSTA says that consumers drinking at home are also treating themselves at home, which can be seen in "significant growth in wine sales at higher price points".

Consumers maybe more reluctant to splash out, but they continue to "prioritise experiences" when they do, and that includes when they eat out.

Analyst Mintel says nearly half of adults who drink alcohol say they haven't changed their general drinking habits in the year to March 2011, while a quarter have reduced the amount they drink to save money and 16% for health reasons.

Making wine lists more user friendly with good imagery and adding value could encourage the seven in 10 alcohol drinking diners, who always tend to drink the same thing, to try something different.

However, while calorie counting on drinks menus is still a debatable issue, Mintel says labelling the number of alcohol units on each drink appeals to nearly two-thirds of 18-24s who drink alcohol in restaurants.

Lower abv drinks like wine spritzers using carbonated fruit would also help attract the 34% of women who are looking for a wider range of this type of drink.

But let's not forget that 'grey' buying power – older consumers with more resources such as time and money – also needs some TLC.

Offering wine by the carafe appeals to them, and 56% of over 55s would like to see this option.