Branded wine currently a missed sales opportunity, research suggests

The research commissioned by Pernod Ricard – which distributes Jacob’s Creek, Brancott Estate, Campo Viejo and Graffigna brands – revealed 48% of on-trade customers regularly drink wine, more than any other drink, and that wine accounts for just 15% of volumes in pubs that are closing down and almost a quarter of the drinks offer in new venues.

Branded wine currently accounts for one third of total wine sales in the on-trade (CGA MAT data 2015) but Ian Peart, on-trade channel director at Pernod Ricard UK, said this area is underutilised by pubs.

“Our research shows that branded wines are a key factor in purchasing decisions for wine drinkers in the on-trade and that three out of five consumers rate the quality of branded wine they have tried as eight out of 10, or better,” Peart said.

“We believe this indicates a huge opportunity for branded wine in the on-trade throughout 2016 and beyond, particularly as more than six out of 10 consumers (61%) also told us they perceived branded wines to be good value for money where available in the on-trade compared with non-branded offerings.”

According to the research, poor perceptions around price and quality are barriers to people buying wine in pubs. The study also revealed that eight out of 10 (79%) frequent wine drinkers drink branded wine in pubs and bars while more than half (54%) said branded wine offered them an “assurance of good taste”.

The data revealed that the potential importance of branded wine is an area that has received little attention until now. Some 17% of branded wine’s distribution in managed pubs and bars has driven two fifths of overall drinks volume.