Spending on rosé wine in the UK off-trade has fallen by 2.5% year-on-year, according to data from consumer research group Kantar, while 63% of all still wine bottles bought are priced at £5 and under.
The research is based on Kantar’s data, which monitors the take home grocery purchasing habits of “30,000 demographically representative households”.
In the 52 weeks to 8 September 2019, households spent £508,561 on rosé, compared to £521,590 in the same period in the previous year.
Total spending on still wine, however, increased to £5,038,891 during the same period, up 3.1% on the previous year, with still red showing the largest increase.
While spending has risen, the percentage of shoppers who actually buy wine is down, according to Kantar. 67.5% of households bought wine in the year to 8 September, a fall of 2.7% on the previous year.
63.2% of these bottles were bought for £5 and under, which in an article published in The Times, Kantar analysts describe as the “psychological £5 price barrier”.
This was compared to 31.4% of spending within the £5.01 to £7 bracket, 4.6% between £7.01 and £10, and just 0.8% of households spending over £10 on a bottle.
Duty on beer and spirits was frozen on 1 February this year, while duty on wine rose to £2.23 per bottle.
On that basis, Bibendum’s Vinononics calculator states that for a £5 bottle of wine, just 30p is spent on the wine itself, once costs including duty, packaging, VAT, logistics, excise duty and margin are taken into account.
For a £20 bottle, however, this rises to £7.03 for the amount spent on wine.
According to Kantar’s data, the average price per bottle has risen each year since 2016. The research group found that the average price of a bottle of still wine was £5.03.
