The retailer will be giving greater prominence to its premium own-label line, increasing the range from 77 to more than 100 wines, in a bid to encourage shoppers to trade up.
However, it intends to keep deals such as three-for-£10 as a part of its strategy.
Addressing its leading suppliers at a conference this week, Tesco is understood to have highlighted the fact that the average price of a bottle of wine had not risen in line with hikes in duty and production costs and the need to inject more profit into the sector.
Suppliers have praised the move. One said: “Tesco is looking to upsell customers by focusing on its Finest range. There is a conscious move not to put everything into a promotional mechanic.
“It wants to get average spend up and it’s positive it sees the opportunity and is therefore tweaking the range it offers.”
Another added: “Given how tough things are in this market, it’s good to see such clear messaging.”
The retailer is also understood to be reducing its supply base by a third, from its current 324, although the number of wines in its range will not change.