THE WINE AND SPIRIT TRADE ASSOCIATION
MARKET
OVERVIEW
UK Wine and Spirits
2014
with data supplied
by the IWSR
CONTENTS
THE UK ALCOHOL INDUSTRY
ŠŠ
ŠŠ
ŠŠ
ŠŠ
Value
Production in the UK
Premises
Employment
GLOBAL CONSUMPTION - IWSR data
ŠŠ
ŠŠ
ŠŠ
ŠŠ
6
Wine consumption per country
Wine consumption per head
Spirits consumption per country
Spirits consumption per head
CONSUMPTION - UK and Europe
ŠŠ
ŠŠ
ŠŠ
ŠŠ
8
Litres per head
Drinkers by age
Consumer trends
European alcohol consumption
SALES - IWSR data 2013
ŠŠ
ŠŠ
ŠŠ
ŠŠ
ŠŠ
ŠŠ
ŠŠ
ŠŠ
ŠŠ
4
UK
UK
UK
UK
UK
UK
UK
UK
UK
wine sales 2009 - 2013
wine sales by category
spirits sales 2009 - 2013
spirits sales by category
wine sales by country of origin
wine sales by colour
wine exports 2010 - 2013
spirits sales: relative market share
spirits exports 2010 - 2012
TAXATION
ŠŠ ŠŠ 14
UK alcohol taxation
European alcohol taxation
SOCIAL RESPONSIBILITY
ŠŠ ŠŠ ŠŠ 10
Success statistics
Industry initiatives
Unit and labelling guidance
16
The Wine and Spirit Market Overview
WHO WE ARE
2014
The WSTA represents over
340 companies producing,
importing, exporting,
transporting and selling
wines and spirits in the United Kingdom.
THE WINE AND SPIRIT TRADE ASSOCIATION
We campaign for a vibrant and sustainable
wine and spirit industry, helping to build a
future in which alcohol is produced, sold and
enjoyed responsibly.
IWSR
The IWSR quantifies
the global market for
alcohol by volume and
value, and provides
insight into short-term
and long-term trends.
Globally, we track
overall consumption and trends at brand,
quality and category level for wines, spirits
and RTDs, with the aim of providing data
that is as accurate and detailed as possible.
Our unique methodology allows us to get
closer to what is actually consumed and
understand better how markets work. The
IWSR researchers conduct face-to-face
interviews with 1,500 companies around the
world, tapping into local expertise, with
further input from 350 companies.
THE UK ALCOHOL INDUSTRY
VALUE
£39 billion
=
Value of the
UK alcohol
industry
Source: CGA Strategy, Nielsen, HMRC, September 2014
Value of the
UK grocery
market
£170
=
billion
Source: ICG Research, 2013
PRODUCTION IN THE UK
204
working
distilleries
448
commercial
vineyards
131 english wineries
Scotland
Northern
Ireland
134
6
This equates to:
England
61
Source: HMRC Registrations, August 2014
4
Page 4
33,384
hectolitres of wine in 2013
3
Wales
produced
4.5 million
bottles
Source: English Wine Producers, 2013
The Wine and Spirit Market Overview
2014
PREMISES
204,400
licensed premises and
544,600
personal license holders in the UK in 2013
Source: Home Office ,2013
26 MILLION people regularly drink wine in pubs, bars, and restaurants
Source: Wine Intelligence, May 2011
Wine
=
&
Spirits
42%
of the value of
alcohol products
sold in pubs, bars
and restaurants
Source: CGA Strategy, September 2013
EMPLOYMENT
Wine and spirits directly and indirectly supports
518,000 UK jobs
bottling
distilleries vineyards
69%
logistics
retailers
of these jobs
are directly
dependent on
the industry’s
activity
Source: Alcohol Duty Escalator Economic Impact Assessment, EY, October 2013
5
Page 5
GLOBAL CONSUMPTION - IWSR DATA
WINE*
CONSUMPTION PER COUNTRY
(000s of 9L cases)
1
2
3
4
5
6
7
8
9
10
China
USA
France
Italy
Germany
UK
Argentina
Japan
Russia
Spain
% change
734,175
345,500
310,598
294,999
282,889
142,489
116,935
106,146
103,936
99,443
+5
+1
-1
-2
-1
-1
+1
+3
-1
-2
*figures include still light wine, sparkling wine, light aperitifs, fortified
wines and other wines
Source: The IWSR, September 2014 (2013 Sales figures)
CONSUMPTION PER HEAD (litres per person)
112
3
4
6
7
8
9
10
-22
Italy
France
Slovenia
Portugal
Switzerland
Montenegro
Austria
Germany
Denmark
Malta
UK
43.2
43.2
39
37.9
37
35.1
34.3
31.4
28.9
27.8
-----20.2
Source: The IWSR, September 2013
6
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2014
The Wine and Spirit Market Overview
SPIRITS
CONSUMPTION PER COUNTRY
1
2
3
4
5
6
7
8
9
10
-14
(000s of 9L cases)
China
1,178,835
India
310,617
Russia
260,701
USA Italy 204,403
S. Korea
France133,098
JapanSlovenia
123,768
BrazilPortugal
106,727
Thailand
72,840
Switzerland
Philippines
61,668
Montenegro
Germany
Austria 47,950
--------Germany
31,013
UK Denmark
% change
+1
+1
0
+3
43.2
-4
43.2
-2
39
-2
37.9
0
37
-7
35.1
-1
34.3
31.4
+1
28.9
27.8
Source:Malta
The IWSR, September 2014 (2013 Sales
figures)
-----20.2
UK
CONSUMPTION PER HEAD
(litres per person)
1
2
3
4
5
6
7
8
9
10
-41
South Korea
Russia
Northern Emirates
Estonia
Belarus
Bulgaria
Lithuania
Guyana
Thailand
Ukraine
UK
24.5
16.5
14.4
14.2
11.8
11.1
9.8
9.8
9.7
9.3
-----4.4
Source: The IWSR, September 2013
7
Page 7
CONSUMPTION
UK ALCOHOL CONSUMPTION
LITRES PER HEAD (+15)
11.6
11.3
11.4
11.1
LPA per head (15+)
11
10.8
10.1
2003
2004
2005
19%
2006
2007
2008
2009
10.1
2010
9.9
2011
9.6
2012
9.4
2013
decline in total alcohol consumption
since a peak in 2004
Source: BBPA analysis of HMRC customs clearances, 2014
DRINKERS BY AGE
70
60
Percentage
50
40
30
20
10
0
16-24
25-44
45-64
65+
All
drank alcohol in the last week
drank on 5 or more days in the last week
Source: ONS Opinions and Lifestyle Survey, 2012
EUROPEAN ALCOHOL CONSUMPTION
litres per capita
litres per capita
1 Luxembourg*
15.3
6 Ireland
11.6
11 Hungary
2 France
12.6
7 Czech Republic
11.5
12 Belgium
3 Austria
12.2
8 Russian Fed.
11.5
13 Slovenia
4 Estonia
12
9 Portugal
11.4
14 Denmark
5 Germany
8
11.7
10 Spain
11.4
15 Poland
Page 8
2014
The Wine and Spirit Market Overview
CONSUMER TRENDS
In the last 4 weeks, what have you drunk...
m
in
e
ru
sp
ic
ed
18%
5%
7%
13%
10%
6%
6%
5%
5%
34%
26%
39% 20%
13%
13%
23%
19% 12%
12%
7%
7%
6%
5%
in
tif
i
ed
ru
ed
ic
th
er
’
7%
5%
9%
6%
4%
4%
2%
1%
36%
30%
16% 9%
9%
7%
7%
8%
3%
5%
6%
5%
6%
2%
w
fo
r
10%
sp
ru
12%
‘o
sp
m
w
m
w
g
in
in
w
kl
ro
ar
w
se
gi
15% 17%
n
re
d
hi
sk
w
y
in
e
e
e
in
w
a
vo
dk
te
6%
hi
ci
de
r
al
13%
e
la
ge
r
e
in
e
‘o
fo
se
At a bar or pub?
th
18%
rt
ru
14% 18%
m
gi
n
er
’
ey
vo
a
w
34%
dk
al
e
hi
sk
sp
ar
ifi
ed
w
w
ro
29%
ci
de
r
la
ge
r
w
kl
in
g
in
e
in
e
w
in
e
w
hi
te
re
d
w
in
e
At home?
Most popular wine varietals
1. Pinot Grigio
4. Cabernet Sauvignon
2. Merlot
5. Syrah/Shiraz
3. Sauvignon Blanc
Most popular spirits
1. Vodka
4. Liqueurs/flavoured
spirits
2. Gin
3. Whisk(e)y
5. Rum
Source: YouGov polling for WSTA, August/September 2014
litres per capita
litres per capita
litres per capita
10.8
16 UK
10
21 Greece
8.2
10.8
17 Switzerland
10
22 Sweden
7.4
10.6
18 Slovak Rep.
9.9
23 Iceland
7.3
10.6
19 Finland
9.8
24 Italy
6.9
10.4
20 Netherlands
9.4
25 Norway
Source: OECD Health at a Glance, 2013
96.6
Page 9
UK SALES - IWSR DATA
WINE
154,117
-1.2%
2013
2012
2011
-2.6%
-2.9%
-1.7%
2010
2009
+1.9%
UK WINE SALES 2009 - 2013
151,474 147,129 144,290 142,489
(000s of 9L cases)
Source: The IWSR, September 2014 (2013 Sales figures)
UK WINE SALES BY CATEGORY 2013
Light
Wine
Sparkling
Wine
Year on Year -2%
5 years -10%
Year on Year +8%
5 years +21%
Other
Wines
Fortified
Wine
Year on Year +2%
5 years +11%
Year on Year -4%
5 years -13%
Light
Aperitifs
Year on Year -7%
5 years -22%
10
Page 10
Source: The IWSR, September 2014 (2013 Sales figures)
The Wine and Spirit Market Overview
2014
SPIRITS
-0.7%
+0.7%
30,933
30,784
31,013
2013
-0.9%
+3.4%
+1.9%
UK SPIRITS SALES 2009 - 2013
30,160
31,189
(000s of 9L cases)
Source: The IWSR, September 2014 (2013 Sales figures)
UK SPIRITS SALES BY CATEGORY 2013
Vodka
Whisky
Year on Year +2%
5 years +7%
Year on Year -1%
5 years -4%
Flavoured
Spirits
Rum
Year on Year +1%
5 years +3%
Year on Year +1%
5 years +12%
Gin
Brandy
Year on Year +3%
5 years +6%
Year on Year -3%
5 years -7%
*
Tequila
Cane
Year on Year +9%
5 years +36%
Year on Year -27%
5 years +6%
11
Source: The IWSR, September 2014 (2013 Sales figures)
Page 11
UK SALES - IWSR DATA
WINE
UK WINE SALES BY COUNTRY OF ORIGIN 2013
Volume
% change
(000s of 9L cases)
(year on year) (last 5 years)
1
Australia
24,286
+1
-14
2
France
17,352
-4
-13
3
Italy
17,200
-8
+1
4
USA
14,825
-2
-13
5
Spain
13,466
-3
+28
6
South Africa
11,091
+14
-17
7
Chile
10,790
-1
-13
8
-12
+18
9
New Zealand 4,551
Germany
3,416
-12
-48
10
Argentina
+3
+3
2,376
Source: The IWSR, September 2014 (2013 Sales figures)
UK WINE SALES BY COLOUR 2013
% change
(year on year) (last 5 years)
45%
white
55,563,000 9L cases
-2%
-10%
43%
red
53,355,000 9L cases
-2%
-10%
12%
rosé
14,370,000 9L cases
-3%
-12%
Source: The IWSR, September 2014 (2013 Sales figures)
UK WINE EXPORTS 2010 - 2013*
(000s) cases
10,526
2013
2012
2011
2010
8,884
9,638
9,734
*all wine products including still, sparkling, fortified, light aperitifs and other wines
Source: The IWSR, September 2014 (2013 Sales figures)
12
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The Wine and Spirit Market Overview
2014
SPIRITS
UK SPIRITS SALES: RELATIVE MARKET SHARE
6%
30.1%
9%
Vodka
Whisky
Flavoured Spirits
9%
Gin / Genever
Rum
Brandy
Tequila (0.7%)
Cane (0.07%)
19.8%
National Spirits (0.05%)
25.2%
Source: The IWSR, September 2014 (2013 Sales figures)
93%
of the value and volume
of gin sold in the UK is
domestically produced
2013
2012
2011
UK SPIRITS EXPORTS
2010 - 2013
2010
(000s) cases
122,727
2013
118,669
2012
121,719
2011
2010
103,610
Source: The IWSR, September 2014 (2013 Sales figures)
13
Page 13
TAXATION
IN THE UK
£17 billion =
Tax paid by the alcohol industry
(Excise duty and VAT)
£329
Equivalent tax
per UK adult
Source: WSTA analysis based on ONS, HMRC, Nielsen And CGA data, September2013
Wine contributed £3.7 billion
to the exchequer in 2013/2014
29%
of all
duties
35%
of all
duties
Spirits contributed £3 billion
to the exchequer in 2013/2014
Source: WSTA analysis based on HMRC Alcohol Duty bulletin, July 2014
THROUGHOUT EUROPE
The UK wine and spirit industry is now
WINE
3rd
highest
for Wine
£ per 75cl bottle
Finland
£2.03
Sweden
and
l
Ire
5
£2.5
United
Kingdom
Denmark
over £1.50
£0.50 to £1.50
£0.01 to £0.50
£0.00
No data
£1.61
£0.89
£2.05
Pol
and
£0.
22
France
£0.02
14
Page 14
Source: Spirits Europe, May 2014
2014
Since
2008...
The Wine and Spirit Market Overview
Wine
taxation has
increased by
Spirits
taxation has
increased by
54%
44%
56%
tax
76%
tax
78%
tax
79%
tax
wine
£5.26
vodka
£12.45
whisky
£10.06
gin
£10.03
(average price 75cl)
(average price 70cl)
(average price 70cl)
(average price 70cl)
Source: WSTA analysis, March 2013
one of the most heavily taxed in Europe
SPIRITS
4th
£ per 70cl bottle @ 37.5% abv
over £10
£5.00 to £9.99
£2.50 to £4.99
up to £2.49
No data
d
lan
Ire
4
£8.9
Finland
highest
for Spirits
£9.57
Sweden
£12.32
United
Kingdom
£7.10
Bel
giu
m
£4.4
5
Poland
£2.83
France
£3.61
Greece
£5.36
Source: Spirits Europe, May 2014
15
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SOCIAL RESPONSIBILITY
SUCCESS STATISTICS
The number of people reporting binge drinking (over
8 units for men and 6 units for women) in the previous
week continues to fall.
Binge drinking on at least one day of the week: from 2005 to 2012
MEN
All
4%
MEN
WOMEN
WOMEN
11%
10%
4%
16 - 24
16 - 24
All
Source: ONS Drinking habits amongst adults, 2012
More young people are abstaining from
alcohol, and those that have tried alcohol
appear to be drinking less
61%
55%
of 11-15 year olds had never
drunk alcohol in 2013. This is
up from 39% in 2003.
9%
12%
of 11-15 year olds drank
alcohol in the last week.
Down from 25% in 2003.
Source: Smoking, drinking and drug use among young people in England 2013, ONS, HSCIC
28%
In 2010, just
of young people agreed it is
acceptable for someone their age to drink alcohol
once a week (down from 46% in 2003)
Source: Smoking, drinking and drug use among young people in England 2012, ONS, HSCIC
16
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The Wine and Spirit Market Overview
2014
INDUSTRY INITIATIVES
Charity established by the industry to change
the nation’s drinking behaviour for the better.
Social responsibility body for alcohol producers
which ensures alcohol is marketed responsibly.
RASG tackles issues with underage sales
and underage drinking. The group formed
Challenge 25, a retailing strategy that
encourages anyone over 18 but looks under 25
to carry acceptable ID. It is now commonplace
in supermarkets, independent retailers and the
on-trade.
RASG
Retail of Alcohol
Standards
Group
The Benevolent aims to make a difference to the
daily lives of those who work or have worked in
the drinks industry and now need help.
Responsibility Deal pledge: ‘...80% of products
on shelf by December 2013 will have labels with
unit content, NHS guidelines and a warning
about drinking when pregnant.
Working
with:
COMMUNITY ALCOHOL PARTNERSHIPS
Community Alcohol Partnerships (CAPs) aim to reduce
alcohol harm in local communities with a primary
focus on tackling underage drinking. This is achieved
via a partnership approach with a focus on education,
enforcement and public perception.
www.communityalcoholpartnerships.co.uk
Since 2007, 83 CAPs have been set up across the UK. Each CAP is unique and is a
success story in its own right. Many have won awards for innovative partnership
working and/or the positive impact they have had on local communities.
DERRY
GATESHEAD
54%
drop in referrals to
the Youth Diversion
Officer between
2010 and 2012
50%
decrease in anti-social
behaviour in February
2013 compared to the
same period in 2012.
ISLINGTON
BRECON
40%
decrease in reports of
alcohol-related youth anti-social
behaviour between April 2012
and March 2013
Source: CAP Interim Reports, 2011-2013
Youth alcohol related
accidents requiring the attention
of the London Ambulance Service
halved
were
in April to December
2011 compared to the same period in 2010
17
Page 17
GUIDANCE
UNITS
90%
of respondents have heard of units
(up from 79% in 1997) and 63% know
what a unit of each type of drink
was (up from 47% in 1997)
2
1
1.5
9
Glass of wine
(175ml)
Single measure
of Spirits
Alcopop or
can of lager
Bottle of wine
2
Pint of regular
beer/lager/cider
Source: ONS Statistics on Alcohol: England, 2013, May 2013
VOLUNTARY LABELLING
As part of the UK Government’s Public Health Responsibility Deal, many
companies within the UK alcohol industry have pledged to implement a
health labelling scheme to better inform consumers about responsible
drinking.
Elements to include on a label
(Government’s preferred format)
Responsibility message
(optional)
Government safe
drinking guidelines
Drink Responsibly
(x)
UK
Units
UK Chief Medical Officers
recommend adults do not regularly
exceed
Men
3-4 units a day
Women
2-3 units a day
www.drinkaware.co.uk
Information in a boxed format
Number of UK units in
the container
Pregnancy logo or
wording (‘Avoid alcohol
(x - insert the correct number of units for
if pregnant or trying to
your drink)
conceive’)
Drinkaware
logo
or
18
website
(optional)
Page 18
The Wine and Spirit Market Overview
2014
SELECTED DATA KINDLY SUPPLIED BY:
www.theIWSR.com
39 Moreland Street
London EC1V 8BB
+44 (0)20 7689 6841
info@theiwsr.co.uk
twitter: @theiwsr
DATA COMPILED AND DESIGNED BY:
THE WINE AND SPIRIT TRADE ASSOCIATION
www.wsta.co.uk
39-45 Bermondsey Street
London SE1 3XF
+44 (0)20 7089 3877
info@wsta.co.uk
twitter: @wstauk
If you have any comments, queries or suggestions please
contact Antonia Fordyce
antonia@wsta.co.uk
0207 089 3880
19
Page 19
The Wine and Spirit Trade Association
International Wine and Spirit Centre
39-45 Bermondsey Street
LONDON SE1 3XF
www.wsta.co.uk
info@wsta.co.uk
@wstauk
Registered Number: 410660 England
Limited by Guarantee
VAT Number: GB 243 8260 60