Wine sales down as tax increases bite, finds report

13th December 2011, 10:48am

Volume sales of wine are continuing to fall and the pace of decline has increased over the last 12 weeks, according to the latest WSTA Market Report.

The latest figures show shop sales of wine down 3% by volume in the 12 months to 26 November and down 4% over the last quarter.  

In pubs, clubs and restaurants most categories saw volumes decline in the year to 1 October. While wine sales for the year were down 6% in volume, sales value increased by 9%.  Sparkling wines saw volumes up by 2% and value up by 8%.

While on-trade spirits volumes were down overall, liqueurs (+5% volume, +10% value) and tequila (+6% volume, +12% value) emerged as the strongest performers.

WSTA chief executive Jeremy Beadles said:  "All the signs point to consumers cutting back on spending and any growth in value is largely down to the impact of this year's tax increases.

"While some categories, including sparkling wine, are bucking the trend, the prospect of a further above inflation tax increase in March, amidst gloomy economic forecasts, offers little joy for consumers or the trade."

The WSTA's Market Report draws on data from leading independent sources including Nielsen and CGA Strategy, with analysis by Tim Wilson, author of the Wilson Drinks Report.

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