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Decline in UK On-trade Continues to Benefit Off-trade

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Decline in UK On-trade Continues to Benefit Off-trade

Decline in UK On-trade Continues to Benefit Off-trade
September 17
15:26 2010

Over the past year value has declined in the UK on-trade across most categories yet value has grown in the off-trade across all categories bar one, according to the latest market data from the Wine & Spirits Trade Association.

The off-trade shows value growth across all categories except fortified wine and volume growth in all categories except ales and fortified wine. The figures for the on-trade show volume decline across all categories of alcoholic drinks and value decline for all categories except standard lager and cider.

Research commissioned by the WSTA also suggests consumers looking to economise are more likely to cut back on going out for meals and entertainment in the next year.

A YouGov poll asked British adults what items of household spending they are likely to cut back on over the next 12 months:

* 46% said going out for meals

* 40% said going out for entertainment

* 34% said going out for a drink

* 20% said spending on satellite TV subscription

* 18% said they do not expect to cut back spending

The breakdown shows 50% of women and 50% of the 25-34 age group would cut back on going out for meals.

The findings are contained in the WSTA’s latest Quarterly Market Report, which features the latest data from leading independent sources including Nielsen and CGA Strategy with analysis by Tim Wilson, author of the Wilson Drinks Report.

Commenting on the figures WSTA chief executive Jeremy Beadles says: “The signs are that consumers remain cautious about their spending and will look to cutback on going out if necessary. However businesses that get the offer right are still doing well. Behind the headlines there are clearly opportunities for growth.  For example, golden rum sales in the on-trade are up in value by over 18% during the past year and sparkling wines are up over 11% in value in the off-trade.”

The WSTA is the UK organisation for the wine and spirit industry representing over 320 companies producing, importing, transporting and selling wines and spirits. Members include all the supermarkets, major off-licence retailers and online businesses, as well as drinks producers, fine wine specialists and logistics companies.

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