On-Trade wine Market Report 2011/12

Our last year’s Wine Selection predicted for 2010/11:

• A continuing increase in market share for wine in the On-Trade.
• Hopes but not expectations of improved exchange rates.
• No significant effect on supply.

What happened!

The On-Trade market share for wine continued its growth but this was slowed by economic conditions. The chief causes of growth were Single Serves and Rosés.

Sterling improved against the U.S. dollar but otherwise remained volatile and generally weaker against other wine producing countries.

Severe earthquakes in Chile had a serious effect on the country’s wineries which affected winemaking and delivery.

The forest fires and drought in Australia affected the level of production particularly for the 2011 harvest.

The effect of the earthquakes on the vintage in New Zealand have not yet had a significant effect on availability.

We have seen our customers look increasingly to Old World House and Entry level wines as innovations by many growers and less of an increase in delivery costs make the wines more attractive.

What about 2011/12?

Due to our growth in wine sales and in the number of our wine customers, H.B.Clark has been able to hold prices on many wines other than HMRC duty increases.

As a result, prices in this Selection remain very competitive – for example the Los Pastos range, the Pacific Heights wines, Bella Modella Pinot Grigio, the Auction House Chardonnay and Shiraz are all some of our best sellers and are (excluding duty increases) the same price as 12 months ago.

It may be that exchange rates do not improve in the short term. There have already been price rises from other producers in Chile, Australia and New Zealand in particular.

We will continue to do our best to maintain price stability wherever possible and to ensure you receive the most reliable service for your wine needs.