Independent Sector Seminar by Paul Quinn
Notes from the seminar by Rosie Davenport (editor Off Licence News) at SITT Manchester
Independents are classed as shops that have at least 80% turnover from wine and to survive they need to have quality wines and great staff; customer service is paramount. Their average turnover is £500,000 or £250 million for the whole section and this represents 4% of the UK wine market. There are over 360 operators in the UK.
The favourite regions that independents buy most of their wine from are France, Australia and Italy (with a jump in sales of Prosecco and Pinot Grigio still selling well). They have around 10% that cross over into the supermarket sector – mainly champagnes like Moët and Chandon. Their average bottle price has gone up from £7.24 in 2008 to £8.25 in 2010. Included in that rise is the 3% increase in duty. But surprisingly most are not importing themselves because of the European exchange rate and are mainly buying from agents.
Promotions
Most of the independents had promotions last year. 84% of them had tastings and said that was the best promotion tool they have. Some do case deals and multi-buys; displays can entice people in. Because of last years demise of First Quench, 85% of outlets said that they had greater footfall. 24% more people have been coming in to purchase higher priced wines, 29% to purchase value wines and 75% of people come in for a more diverse wine. A lot of independents are now selling wines online – this has brought in 5.5% of sales and is still growing.
Main challenges for this year again are currency, duty rises, economy and getting people to come in more from supermarkets. A lot of them are expecting a good year with more growing confidence and expect to sell more premium wines.
© Paul Quinn 2010
