Consumers in the UK spent an estimated £7.24bn on wines in 1999, representing a 27.9% share of the overall expenditure on alcoholic drinks. Beer remains the largest drinks market, but wine has overtaken spirits and liqueurs.

Unlike the other drinks, wines are almost entirely imported into the UK. Traditionally, the country or region of origin was the characteristic that defined the wine market - Champagne and fine wines from France, with cheaper wines coming from Spain, Italy or Germany. However, during the 1990s, imports were broadened out, with the New World wineries in Australia and California mainly responsible for the increase in choice, and the threat to the Old World. Eastern Europe, New Zealand, South Africa and even South American countries have also contributed.

Fortified wines, included in the £7.24bn market value, were worth £440m in 1999, and their market is declining steadily in favour of other, lighter drinks. Like the light wines, the fortifieds are essentially defined by their origin - sherry from Spain, port from Portugal, and vermouth from Italy - but the leading brands are also important (Harvey's, Cockburn's, Martini).

Supermarkets and their own-label products dominate the retailing of wines, and have been responsible for wine becoming a standard 'take-home' drink in the UK. However, wine commands high prices and profit margins in the on-trade, public houses (pubs) and restaurants, where the dining out trend is helping growth. Major retailers source their own wines, so that importing is fragmented across many distributors, reflecting the fragmentation of wine-making in Europe. Branding is inhibited by own labels, and by consumers' preference for choosing by country of origin or by grape variety (e.g. merlot or chenin blanc). However, recent years have seen a move towards brands such as Jacob's Creek (Australian) and E&J Gallo (California).Champagne and premium wines have obviously benefited from the Millennium celebrations, but growth is generally reaching a more steady level, with some signs of saturation appearing in the wines market. Higher quality wines have the best prospects, and competition between countries of origin will continue to drive the market early in the 21st century. The forecast value for the total wine market (including fortified wines) for 2004 is £8.58bn - a 16.4% rise on the estimated value for the year 2000. The still light wines sector is forecast to reach £7.3bn by 2004, while sparkling wine and Champagne are estimated to reach £900m.

Executive Summary taken from 'Wine' by Key Note Ltd, price £375, to order your copy click here.

Table of Contents

Executive Summary 1
1. Market Definition 2
INTRODUCTION 2
MARKET SECTORS 2
Still Light Wines 2
Sparkling Wines 3
Fortified Wines 3
Table 1: The UK Market for Wines of Fresh Grape by Market Sector (£m at rsp and %),1999 3
MARKET POSITION 4
Wines in the Drinks Market 4
Table 2: The UK Drinks Market by Market Sector (£bn at rsp and %), 1999 4
Comparative Drinks Volumes 5
Consumer Attitudes to Drinks 5
Table 3: Preferred Place for Drinking All Drinks (% of adults), 1999 6
MARKET TRENDS 6
Growth of the ’Take-Home’ Market 6
Influence of Fashion 7
Changing Import Patterns 7
Varietals and Brands 7
Millennium Build-Up 7
Supplier Fragmentation 8
2. Market Size 9
THE TOTAL MARKET 9
Table 4: The UK Market for Wines by Value at Current Prices (£m at rsp), 1995-1999 9
Volume and Prices Trends 10
Table 5: Clearances of Wines by Volume (million litres), 1995-1999 10
BY MARKET SECTOR 11
Still Light Wines 11
Sparkling Wines 12
Table 6: The UK Light Wine Market by Type of Wine by Colour (£m at rsp and %), 1999 13
Fortified Wines 13
Segmentation by Origin 14
Imports 14
Imports of Still Light Wines 14
Table 7: The Principal Origins of Still Light Wine Imports by Volume (%), 1992, 1996 and 1999 15
Imports of Sparkling Wines 16
Table 8: The Principal Origins of Sparkling Wine Imports by Volume (%), 1992, 1996 and 1999 17
Imports of Fortified Wines 17
3. Industry Background 18
RECENT HISTORY 18
INDUSTRY CONCENTRATION 18
DISTRIBUTION 19
Importing and Agencies 19
Retail Outlets 20
Table 9: Retail Shares by Type of Wine by Volume by Value (%), 1999 20
Specialist Off-Licences 21
Trade Organisations 22
Wine and Spirit Association 22
4. Brands 23
BRAND LEADERS BY SECTOR 23
Still Light Wines 23
Sparkling Wines 24
Fortified Wines 24
KEY NOTE BRAND SURVEY 25
Table 10: Wines Drunk by UK Adults by Type of Wine (%), 1997 and 1999 25
Drinker Profiles by Brand 27
Table 11: Profile of Drinkers of Leading Still Light Wine Brands (%), 1999 27
Table 12: Profile of Drinkers of Other Still Light Wines (%), 1999 29
Table 13: Profile of Drinkers of Leading Fortified Wine Brands (%), 1999 31
5. Competitor Analysis 32
THE MARKETPLACE 32
Light Wines and Sparkling Wines 32
Fortified Wines 33
MARKET LEADERS 33
Table 14: Major Wine Shippers, Agents, Distributors and Wholesalers, 1999 34
Table 15: Selected UK Wine Companies by Turnover (£m), 1998 and 1999 35
Diageo PLC 36
Financial Results 37
Allied Domecq (Holdings) PLC 37
Financial Results 37
Matthew Clark PLC 37
Financial Results 38
Bacardi-Martini Ltd 38
Financial Results 38
Seagram UK Ltd 38
Financial Results 39
Other Leading Companies 39
Advertising and Promotion 40
Table 16: Main Media Advertising Expenditure on Wines by Category (£000), Years Ending September 1998 and 1999 40
Table 17: Main Media Expenditure on Branded and Regional Wines (£000), Years Ending September 1998 and 1999 41
6. Strengths, Weaknesses, Opportunities and Threats 42
Strengths 42
Weaknesses 42
Opportunities 42
Threats 43
7. Buying Behaviour 44
CONSUMER PENETRATION 44
Table 18: Wine Drinkers by Sex, Age and Social Grade (% of all adults), 1999 44
HOME CONSUMPTION 46
Table 19: Home Drinkers of Wine by Sex, Age and Social Grade (% of all adults), 1995, 1997 and 1999 46
REGIONAL PATTERNS 47
Table 20: Drinkers of Wine by Region (% of all adults), 1999 47
8. Outside Suppliers to the Industry 48
Introduction 48
PACKAGING TRENDS 48
9. Current Issues 50
Wine and Spirit Association 50
RETAILING CHANGES 50
WINE DISTRIBUTORS 50
OTHER DEVELOPMENTS 51
10. Forecasts 52
CHANGING ORIGINS 52
BRANDED WINES 52
Electronic COMMERCE 53
OTHER RETAILING 53
PROSPECTS FOR FORTIFIED WINES 53
FORECASTs 2000-2004 54
Table 21: The Forecast UK Wine Market at Current Prices (£m), 2000-2004 54
11. Market Growth 55
A DECADE OF GROWTH 55
Figure 1: The Total UK Wine Market by Value at Current Prices (£m at rsp), 1995-2004 55
12. Company Profiles 56
Allied Domecq (Holdings) PLC 57
Bacardi-Martini Ltd 59
Diageo PLC 61
Matthew Clark PLC 63
Seagram United Kingdom Ltd 65
13. Company Financials 67
14. Further Sources 70
Associations 70
Periodicals 71
Directories 72
General Sources 73
Hoppenstedt Bonnier Information Sources 73
Government Publications 74
Other Sources 75
Understanding TGI Data 77
Number, Profile, Penetration 77
Social Grade 78
Standard Region 78
Key Note Research 79
The Key Note Range of Reports 80

Executive Summary taken from 'Wine' by Key Note Ltd, price £375, to order your copy click here.