NZ eclipses German wine sales

30 April, 2010

German wine producers are upbeat about their prospects in the UK market, despite gloomy Nielsen stats which show they have been overtaken by New Zealand in the UK off-trade.

Figures for the year to March 20 show New Zealand now has a 4.6% share of the take-home wine market in value terms, and 3.3% by volume.

Germany saw its market share fall from 2.9% to 2.5% by value, and from 4% to 3.2% by volume.

Nicky Forrest, managing director of Wines of Germany, said:

“Over the past 12 years Germany has focused on building value in the UK market. Statistics do track a decline in Germany’s overall UK market share, but this can be attributed to a reduction in the volume of wines sold priced £3 and below – and we are well aware that this will continue.”?Forrest added that Germany, alongside Spain, was the fastest-growing country in the £5-plus bracket, with 33% volume growth. “Wines of Germany continues to be optimistic about the future of its wines in the UK market and sees the consumer demand for lower-alcohol wines as a huge opportunity,” she said.

A jubilant David Cox, European director for New Zealand Winegrowers, said: “New Zealand is now the fastest-growing country of origin, showing volume gains of 57%. This has been accomplished while retaining the crown of having the highest average retail price at £6.05 per bottle.”?Cox acknowledged that “some discount price activity has influenced aspects of this fantastic performance”.

But he added: “Nonetheless, our continued value growth and high average retail price, which has actually grown for red wines, confirm that UK consumers are continuing their affection and loyalty to the incredibly interesting wines being made in New Zealand.”?Australia continues to lead the off-trade wine market, although its value share fell from 22.4% to 21.1%.

There were also declines for the US and France, while Italy, South Africa, Chile and Spain all increased their respective market shares.

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