Wine On-Premise UK 2018
T H E M E N U Introduction... Page 5 The UK s Best On-Premise Distributors... Page 7 The UK s Most Listed Wine Brands... Page 17 The Big Picture... Page 26 The Style Mix... Page 31 White Wines... Page 32 The Share of White Wine Styles... Page 34 Rose... Page 41 Red Wines... Page 42 Champagne and Sparkling Wines... Page 50 Dessert Wines... Page 52 Fortified Wines... Page 53 Producer Profitability... Page 54 Country Report Cards... Page 56 Conclusion... Page 72 W I N E O N - P R E M I S E : U K 2 0 1 8 P A G E 3
I N T R O D U C T I O N This is the most comprehensive investigation ever conducted into On-Premise distribution in the UK. We look at who the best distributors are, what the most listed wine brands and styles are, the performance of supplier countries and regions, what restaurants charge for wine listed by-the-bottle and by-the-glass, and how much wine business owners and distributors can expect to make from On-Premise sales. The primary purpose of the On-Premise distribution effort is to attain listings. That s what WBS s Wine On-Premise UK survey measures. This is now our 9 th survey giving us nearly 180,000 listings as a database for longer term analysis. Why are On-Premise listings so important? People buy what they try. It s a chance for your wine to be seen and consumed in the best possible surroundings. It s a chance for you to be remembered, recommended and bought again later. It s one of the only true brand building opportunities many wines will ever experience. And it is open to everyone, make no mistake. In our 2018 survey alone there were 4930 brands listed. This was 16% up on last year reflecting ever growing sophistication in this Great British Wine Market, the true litmus for wine brands globally. W I N E O N - P R E M I S E : U K 2 0 1 8 P A G E 4
About the Sample WBS s Wine On-Premise UK 2018 survey covers the full range of possible wine consumption occasions including regular suburban restaurants, fine dining, hotels, pubs and upmarket bar venues. We select outlets and individual listings on wine lists completely at random but using consistent methodology. We stratify the sample in proportion to the population excepting that we increase the weighting of Northern Ireland and Scotland slightly to improve accuracy when reviewing these markets in isolation. The split used is as follows; London Area 15% Midlands & East Anglia 18% National Accounts 3% The North 15% Northern Ireland 5% Scotland 13% South East & East 18% South West 7% Wales 6% Our aim is to construct a truly random, statistically significant sample so as to be 99% confident that the means of our sample answers, involving the whole database, are within +/- 5.5% of the mean of the total market. The aim is to accurately reflect what the average consumer sees when presented with a wine list anywhere in the UK. Naturally when we break the database down into ever smaller segments, some of this accuracy is lost. We are always careful, therefore, not to make claims beyond what reliable data confirms. (Note - Our last report was released in December 2016. Data is still captured in December, but the release date has been moved forward to January. Throughout this report, we compare 2018 with 2017. Data for each year, however, was collected during the preceding December.) How big is the market? Taking the mean of a number of credible estimates, around 19% of wine is consumed in the On-Premise in the UK. That s approximately 27 Million 9 litre cases. Interestingly, 19% is also the number in both the US and Australia demonstrating, perhaps, the extent to which restaurant culture has become globalised. There is no doubt that it has been a tough year in the UK with many of the key questions around Brexit yet to be resolved. On the positive side, the On-Premise is currently healthy and growing much faster than the overall economy. Restaurants, Hotels and Bars grew revenue by 5% YTD June 2017, according to Visa. Many categories within our survey showed significant rises in average price compared to last year. For those in the know, there is still money to be made in this market. W I N E O N - P R E M I S E : U K 2 0 1 8 P A G E 5
T H E U K S B E S T ON- P R E M I S E D I S T R I B U T O R S If you want to be successful in the UK On-Premise, you ll need top quality distribution partners. The big question is which ones? Harpers identify more than 500 companies who claim to be able to manage wine distribution for you, nationally or regionally, within the UK. In our 2018 survey, we captured data on nearly half of those. The Top 30 On-Premise distributors in the UK in 2018 are now responsible for 73.4% of all listings attributable to individual distributors, according to our research. Knowing who this Top 30 are and how they operate is therefore going to be very important. Understanding that your current distributor is ineffective, perhaps even more so. To be a good On-Premise distributor, you first need to have a strong enough portfolio to be able to command attention. The real acid test, however, is listings per brand. From the supplier s point of view, at least, there is absolutely no point in being part of a giant portfolio if the distributor doesn t achieve wide-ranging distribution. The other key task of the distributor is to get restaurants customers trialling products and to move volume through attaining wine by-the-glass listings. The distributor should also be able to up-sell and cross-sell alternative formats such as half bottles, magnums and multiple pouring sizes to optimise list coverage. Brand visibility and recognition creates brand strength. A good distributor must also be able to adapt to what is a very fast changing market, to have the right portfolio to keep their trade customers happy. They must also be able to manage cashflow in one of the more difficult sectors in which to do so. Above all, a great distributor needs to be able to produce results for quality suppliers. Without them and the brands your joint customers believe in, there is no sustainable business, only commodity trading. And the winners are W I N E O N - P R E M I S E : U K 2 0 1 8 P A G E 6
Figure 1 The Top 30 Distributors in the UK in 2018 Ranked by Share of Listings Figure 2 The Top 30 Distributors 2018 Ranked by By-The-Glass Pouring & Alternative Size Listings Figure 3 - The Top Ten On-Premise Distributors in the London Area in 2018 Figure 4 - The Top Ten On-Premise Distributors in the South and Wales in 2018 Figure 5 - The Top Ten On-Premise Distributors in the Midlands and the North in 2018 Figure 6 - The Top Ten On-Premise Distributors in Scotland in 2018 Figure 7 - The Top Ten On-Premise Distributors in Northern Ireland in 2018 Figure 8 - The Top 30 On-Premise Brands in the UK for 2018 Figure 9 - The Top 30 On-Premise Brands in the UK for 2018 Wine Only Figure 10 Number of Brands in the Top 30 by Country Wine Only Figure 11 - The Top 30 Brands By-The-Bottle and By-The-Glass in the UK for 2018 Figure 12 - The Top 20 On-Premise Brands in London and Top 20 Brands Wine Only Figure 13 - The Top 20 Brands in the South, West and Wales and Top 20 Brands Wine Only Figure 14 - The Top 20 Brands in the Midlands, East Anglia and the North and Top 20 Brands Wine Only Figure 15 - The Top 20 Brands in the Scotland and Top 20 Brands Wine Only Figure 16 - The Top 20 Brands in the Northern Ireland and Top 20 Brands Wine Only Figure 17 Share of Total Wine Listings by Country Figure 18 Share of Total Wine Listings by Country 2013 to 2018 Figure 19 Proportion of Listings at Price Points ( s per Bottle) by Country Figure 20 Share of Listings and Average Listed Price of a Bottle of Wine in 2018 vs 2017 Figure 21 The Share of Listings Held by the Major Supplier Countries by Market Figure 22 The Share of Total Listings Held by the Major Supplier Regions Figure 23 Share of Listings by Wine Style 2012 to 2018 Figure 24 Changes in Share and Price of Bottle Listings for Leading White Wine Regions Figure 25 Changes in Share and Price of Glass Listings for Leading White Wine Regions Figure 26 Share of White Wine Listings by Varietal Figure 27 Changes in Share of Total Listings for Leading White Wine Regions Figure 28 Total Sauvignon Blanc Bottle Listings Change in Share and Price 2018 vs 2017 Figure 29 Total Sauvignon Blanc Bottle Listings by Country Figure 30 Sauvignon Blanc By-The-Glass Listings Share and Average Price for Leading Regions Figure 31 Total Chardonnay Bottle Listings Change in Share and Price 2018 vs 2017 Figure 32 Chardonnay By-The-Glass Listings Share and Average Price for Leading Regions Figure 33 Total Pinot Gris / Grigio Bottle Listings - Change in Share and Price Leading Regions Figure 34 Pinot Gris / Grigio By-The-Glass Listings Share and Average Price for Leading Regions Figure 35 Total Chenin Blanc Bottle Listings - Change in Share and Price Leading Regions Figure 36 Chenin Blanc By-The-Glass Listings Share and Average Price for Leading Regions Figure 37 Total Riesling Bottle Listings - Change in Share of Count and Price Leading Regions Figure 38 Riesling By-The-Glass Listings Share and Average Price for Leading Regions Figure 39 Total Viognier Bottle Listings - Change in Share and Price Leading Regions Figure 40 Total Blended White Wine Listings Leading Countries Figure 41 White Blend Bottle Listings - Change in Share and Price Leading Regions Figure 42 Total Rosé Bottle Listings - Change in Share and Price Leading Regions Figure 43 Total Rose By-The-Glass Listings - Change in Share and Price Leading Regions W I N E O N - P R E M I S E : U K 2 0 1 8 P A G E 7
Figure 44 Red Wine Bottle Listings - Change in Share and Price Leading Regions Figure 45 Total Red Wine Glass Listings - Change in Share and Average Price Leading Regions Figure 46 Share of Total Red Wine Listings by Varietal Figure 47 Share of Total Red Wine Listings by Varietal 2018 vs 2017 Figure 48 Total Merlot Bottle Listings by Share and Price Leading Regions Figure 49 Total Merlot By-The-Glass Listings - Change in Share and Average Price Leading Regions Figure 50 Total Pinot Noir Bottle Listings - Change in Share and Price Leading Regions Figure 51 Total Pinot Noir By-The-Glass Listings - Change in Share and Average Price Leading Regions Figure 52 Total Shiraz Bottle Listings - Change in Share and Price Leading Regions Figure 53 Total Shiraz By-The-Glass Listings - Change in Share and Average Price Leading Regions Figure 54 Share of Red Blend Listings by Country of Origin Figure 55 Total Cabernet Sauvignon Bottle Listings - Change in Share and Price Leading Regions Figure 56 Cabernet Sauvignon By-The-Glass Listings - Change in Share and Average Price Leading Regions Figure 57 The Top 20 Champagne Brands Figure 58 Comparison of Champagne Categories Figure 59 Most Listed Sparkling Wine Brands Figure 60 Share of Sparkling Listings Figure 61 Most Listed Dessert Wine Brands Figure 62 Dessert Wines Share by Leading Styles Figure 63 Fortified Wines Share by Style Figure 64 Top 20 Fortified Wine Brands Figure 65 Volume of Case Sales Required to Make a $A100,000 Profit at Given Margins Figure 66 Impact of Tax, Exchange Rates and Listed Price on Ex Cellars Price and Profits Figure 67 The Top 20 Argentine Brands in the UK Figure 68 - Top Twenty Australian Wine Brands Figure 69 - Source of Australian Wine by Region Share of Category Figure 70 The Top Twenty Chilean Wine Brands Share of Category Figure 71 Source of Chilean Wine by Region Share of Category Figure 72 - Source of French Wine by Region Share of Country Category Figure 73 The Most Listed Languedoc-Roussillon Brands Share of Category Figure 74 The Most Listed Loire Brands Share of Category Figure 75 The Most Listed Rhone Brands Share of Category Figure 76 The Most Listed Bordeaux Brands Share of Category Figure 77 The Most Listed Brands from the SW of France Share of Category Figure 78 The Most Listed Burgundy Brands Share of Category Figure 79 The Most Listed Chablis Brands Share of Category Figure 80 The Most Listed Brands from Provence Share of Category Figure 81 The Top Ten Alsace Brands Share of Category Figure 82 The Most Listed Beaujolais Brands Share of Category Figure 83 The Top Seventeen German Brands Share of Category Figure 84 - Source of Italian Wine by Region Share of Category Figure 85 - The Top 20 Italian Brands Share of Category Figure 86 - The Top 20 Veneto Brands Share of Category W I N E O N - P R E M I S E : U K 2 0 1 8 P A G E 8
Figure 87 - The Top 10 Piedmont Wine Brands Share of Category Figure 88 - The Top 10 Tuscan Wine Brands Share of Category Figure 89 - The Top 10 Sicilian Wine Brands Share of Category Figure 90 - The Top 20 New Zealand Wine Brands Share of Category Figure 91 - The Top 20 South African Wine Brands Share of Category Figure 92 - The Top 20 Spanish Wine Brands Share of Category Figure 93 - The Top 20 US Wine Brands Share of Category W I N E O N - P R E M I S E : U K 2 0 1 8 P A G E 9
Disclaimer - Any representation, statement, statistics, opinion or advice, expressed or implied in this paper is made in good faith but on the basis that WBS or its Principals are not liable (whether by reason of negligence, lack of care or otherwise) to any person for any damage or loss whatsoever that has occurred or may occur in relation to that person taking or not taking (as the case may be) action in respect of any representation, statement or advice referred to above W I N E O N - P R E M I S E : U K 2 0 1 8 P A G E 10
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