I MARKET TRENDS I ©
I MARKET TRENDS I © Ibrahim Boran Unsplash © Kelsey Knight- Unplash A BREAK DOWN OF UK WINE DRINKING BY COLOUR Younger consumers in the United Kingdom are more likely to drink rosé, sparkling wines and sweet/ dessert wines. They are also more likely to drink Moscato (20%+ for 18-39 vs 11% for Gen X and 4% for Boomers). For white wines, there was little difference between the generations. For red wines however, it is noteworthy that Shiraz penetration increases with age. Shiraz proved to be the most generation sensitive red variety: from 17% for Gen Z to 42% amongst Boomers. What makes different generations in UK pop a bottle? Wine Paris & Vinexpo Paris 2023 conducted a study with IWSR and Wine Intelligence on wine consumption in the United Kingdom through the generations Wine drinkers in the UK have been quizzed on their grape consumption including how and when they like to drink in a cutting edge new study. The findings, carried out on behalf of Wine Paris & Vinexpo Paris 2023, were organised according to participants' age to see how this impacts people's habits and behaviours when it comes to wine consumption. While several key behaviours varied little across the generation, others differed significantly between Generation Z (aged 18-24), Millennials (aged 25-39), Generation X (aged 40-54) and boomers (aged 55 and over). Asked what motivates their consumption, older consumers reported being more focused on functional attributes, such as taste, relaxation and food matching. Younger generations on the other hand, were more likely to see wine as a specific occasion-based beverage, especially in social settings. Boomers were also more likely to rely on regular purchase patterns, while other generations were more likely to try a new bottle. Respondents were also asked to share their alcohol repertoire. For younger drinkers in the UK, wine shares space with a wide variety of other alcoholic beverages, particularly spirits, cider and cocktails. The alcohol repertoire for older generations tended to be shorter, with Boomers listing beer/craft beer and gin as other options. The results also shed light on peoples' off-premise wine drinking habits. Consumers aged 18-39 account for 26% of the regular wine drinking population and 34% of the total spend was off premises. Boomers were heavily focused on informal wine drinking occasions compared to younger drinkers who had a more balanced repertoire of wine drinking occasions, and more of them in social settings. How many people purchased wine through e-commerce channels was also examined. The study found that purchasing wine online decreased with age, with 48% of Gen Z respondents buying online compared to 31% of Boomers. Younger consumers in the Untied Kingdom were also more likely to view wine as being an expensive drink. When it comes to drinking wine in bars and restaurants, younger generations account for about half of still wine volumes and total spend. This said, a vast majority drink wine in restaurants (80%+), across all age groups. The Main point of difference came from drinking wine in bars and/or pubs, with 82% for Gen Z, 69% for Millennials, 60% for Gen X and 52% for Boomers. Gen Z and (to a lesser extent) Millennials still drive wine consumption in on-premise, especially for up-tempo social occasions and exhibit a particularly high willingness to trade up, the study found. Overall, the study shows boomers and Gen X remain key targets for the UK wine industry, as it remains a solid habit and wine dominates their alcohol repertoire. These two groups account for 73% of the wine drinking population and 66% of total spend in off-premise, with routine purchase-patterns at entry and mid price points. At the same time, Gen Z and Millennials are key targets in on-premise and for premium and super premium wines 8 • THE DAILY • TUESDAY 7 TH FEBRUARY 2023 wineparis-vinexpo.vinexposium-connect.com
I TRADE TALK I Urs Ullrich CEO, Ullrich Passion, Switzerland Andréas Ståhl Founder & CEO, Tuesday Wine, Sweden TUESDAY WINE HUNTS FOR HALF BOTTLES OF HIGH QUALITY SUSTAINABLE WINE Ullrich Passion for Liquids shares its key purchasing criteria CEO Urs Ullrich tells Wine Paris & Vinexpo Paris 2023 how the market is changing and what he expects from the future world of wine. Founder and CEO Andréas Ståhl tells The Daily what he is looking for on the trade show floor at Wine Paris & Vinexpo Paris 2023. Tuesday Wine offers top quality wines delivered in half bottles of 375ml for those who desire only a glass, or two. The revolutionary concept aims to help consumers drink less, while preventing waste and offering more variety at a lower cost. We spoke to the man behind the brand... What kind of products are you interested in at Wine Paris & Vinexpo Paris 2023? I’m looking for both classic origins and new exciting products that could fit the Swedish consumers taste profile. The wine and liquor house, founded in Basel, Switzerland, almost a century ago, offers a wide range of wines and spirits and aims to delight its customers with an excellent service. What type of products are you particularly interested in this year? Maybe we will discover something new, but our primary goal is to visit our existing partners. What are the key criteria you look for when deciding on whether to purchase a new product? Label, quality and value for money. How are consumers' tastes and expectations changing in your market? We are seeing a general trend towards less alcohol consumption, and towards alcoholfree wines or wines with reduced alcohol content. What do you think is driving these changes and does this present new challenges? Increasing health awareness is a main driver and poses the question – how can LABEL, QUALITY AND VALUE FOR MONEY. the industry or winemakers produce high quality wines with less than 10% alcohol? What market segments do you think will see significant growth over the coming years? I think consumers will switch to cheaper products or countries with better value for money such as Portugal. What are the key criteria you look for when purchasing a new product? As well as good quality, sustainable wines, for me the wine industry is a people’s business. It is important to be able to develop a mutually profitable longterm business. How are consumers' tastes and expectations changing in your market? We are a monopoly driven market where the state-owned monopoly has a long-term commitment to sustainable wine production. This will reflect consumers' choices, as consumer behaviours move towards favouring products with a more social and environmental or ethical commitment. What do you think is driving these changes and does this present new challenges? The challenge will be for producers who do not want to progress in line with these changes, from becoming socially responsible and organic to lowering carbon foot print and switching to lightweight glass bottles. What market segments do you think will see significant growth over the coming years? Today, more than 60% of all wines come in a 3 litre bag-inbox. So the Swedish market's biggest growth will be how wine is packaged, with new alternatives like PET bottles and wine in cans THE DAILY • TUESDAY 7 TH FEBRUARY 2023 • 9
