I note with interest the headline in your
Aug 22 issue
Sainsbury's beefing up
its offering of wines under £4
- apparently following customer research and no doubt fuelled by the market share growth of the discounters.
However, while I am sure there is some
logic in this quest and that the buying teams have sharpened their pencils, I would
point out a few facts:
Duty on wine is now at £1.46 per bottle - a few pence more for
V AT on a £4 bottle is 70p
Accepting that even our grocery chains pay these taxes, that leaves a sum of £1.84 for the rest .
I am sure that the "norm" 30% gross margin will be demanded, which will leave the grand total of 64p
- E0.79, AU$1.35 or $US1.17 - for the "quality" wine
I am certain they will be tasked
with seeking out of
the global wine supply base .
I also note that, while the £3-£4 off-trade price bracket
is important at 42% of†the market, its growth is just 2%, while†the £4-£5 sector is 23% of the market and growing at 7% . Needless to say, the £5+ sector is showing a healthy 20% increase and now represents 18% of the market.
long out of the day-to-day battles fought with corporate number crunchers, PR executives and marketers, but
wonder where this will all lead. We know
is committed to a
2% over-inflation duty increase in 2009 and beyond, currencies are going to remain weak for the forseeable future and it has been raining in Europe
Is the sub-£4 strategy the right one? Will customers get better wines?
They may be cheaper but
will suppliers make enough to invest? Will we have a wine industry?
It's all a good debate and I look forward to tasting these offerings over the coming months
- it should be interesting .
I wonder how
the buyers would fare if charged with supplying a wine at 64p a bottle and making a profit for their companies
(aka Mr Grumpy of Chiswick )
No sale with kids present
there is a need to control the sale of alcohol to under-age drinkers and the need to stop the supply by people of the legal age to those below the legal limit.
I was refused the sale of alcohol as my son did not carry ID. I am 48 years old and being treated like a common criminal makes me very angry. So on the subject of Challenge 25, why should I be treated in such a fashion as a law -abiding citizen?
And at what age can I take my children into a shop before I am not refused the sale of alcohol?
Tom Pearce, by email
Plea from a responsible trader
I'm fed up with having to take the blame when it comes to irresponsible drinking. When customers purchase alcoholic products from my shop, I imagine that, more often than not, they're being enjoyed in the comfort of their own homes and not, as many imply, on a park bench as a warm-up to their night out.
I'm a responsible retailer - I check the ID of anyone who looks under 25, I don't stock alcopops of any description and I don't run outlandish drinks promotions.
I like to think I attract
responsible drinkers with my choice of stock and rarely have to refuse service as few under-age customers attempt to purchase alcohol from me.
It's the bars and pubs running drinks promotions that are the problem. Customers are far more likely to line up shot after sickly shot on the bar of a cut-price, high-street boozer on their way to the local nightclub than purchase anything from me and attempt the same at home.
Perhaps the focus needs to be diverted elsewhere. And don't get me started on the supermarkets ...
Tony, by email