Steve Barton, joint director at Brand Phoenix, said: "The latest statistics show that we have lost 1.2 million cases of wine sales in the last 20 weeks because people are not buying it. We have a duty to try to hit a certain price point and these wines offer a recession-busting way for people to still drink wine. Because of the price, they also allow us to drive different promotional mechanics such as two-for -£5 or four-for -£10.
"There is also a responsible drinking angle because consumers can limit
what they consume.
"But the most important thing is to unlock value in the market and all the consumer soundings we have point to the fact that this is the kind of innovation
and price that they are looking for."
Barton added that the company was working with other retailers on new types of packaging that could reduce production costs or provide supermarkets with a point of difference.