Low duty prompts rise in sales for affordable British wines

30 April, 2010

British wines such as Three Mills and Rougemont Castle are seeing a revival in fortunes, according to Nielsen.

The category is taking advantage of its lower-duty status to enable it to hit price points attractive to cash-strapped consumers, said analyst Stewart Blunt.

“There are one or two of these creeping into the market,” he said. “The duty band is lower for wines under 8.5% abv and lower again for under 5.5% abv – obviously it’s one way to hit a price point.”?Blunt said sales of light wines at the cheaper end of the market had been declining recently. “But with things like British-made wine, there seems to be a resurgence of interest. It’s £2.50 for a bottle, and that’s tempting for people.”?In 2009 British wine sales rose by 54% to £11 million, according to Nielsen data for the year to December 26.

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