International report: Wine and spirit sales fall as tax increases hit consumers
FoodBev.com/ Wine & Spirit Trade Association - Mar 20th, 13:58
The latest Wine & Spirit Trade Association market report shows that year on year alcohol duty rises have hit consumer spending on alcohol in the on and the off trade.
The drop in volume sales of 4% in the on trade and 3% in the off trade, in the last year, shows consumers are cutting back due to cost of living pressures after five consecutive years of above inflation duty increases.
Despite the drop in volume sales, tax increases of over 5% in 2012 helped to push up prices by 2% in the off trade and 3% on the on trade. If the alcohol duty escalator continues duty on duty wine will have increased by 50% and spirits by 44%, since 2008.
The data reveals that:
Total volume sales have continued to slide, down 3% annually and 4% over the latest 12 weeks.
While value performance is up 2% in the past 12 months, this is largely being driven by elevated duty rates.
Sparkling wine is the only major category to grow in volume, up 8% over 12 months and 12% in the last 12 weeks due to the decline in Champagne and consumers looking for a cheaper alternative.
RTDs are falling in value, down 3% for the past 12 months with volumes down by 9%.
Spirits’ volume sales are down 1.5% overall, mainly due to a drop in vodka sales.
Total volume sales were down 4% annually and down 4% over the last 12 weeks, largely due to falling beer sales.
Spirits sales were up slightly in both the short term and long term with a 1% increase in each period.
The Liqueurs category has enjoyed strong growth, up 13% in volume over the past 12 months and an even stronger 12 week performance, up by 16%.
Rum and Brandy continue to experience strong volume growth in the short term, up 8% and 12% respectively in the last 12 weeks.
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