With household costs spiralling upwards, even before the outbreak of the war in Ukraine, living standards are set for their biggest drop since records began. Research conducted at the end of March 2022 by Broadland Drinks’ Insight Manager Simon Oastler found that 61% were quite or extremely worried about household finances at present.
As a result, and in response to consumer expectations and competitive pressures, retailers will need to keep entry price points as sharp as possible - which will be a challenge in the face of their own increasing costs. Our category tracking shows that well over 1 in 10 products in the wine aisle have seen their RSP increase just in the last six months, and Nielsen data shows some significant increases in the average price actually being paid, for instance New Zealand wine is on average up 84 pence per bottle compared to the same period last year, and Chilean wine is up 23 pence per bottle (NielsenIQ, 4 w/e 12th March 2022).
According to Kantar, 1 in 10 wine shoppers don’t spend more than £3.99 on a bottle, and 1 in 5 don’t spend more than £4.99, so as budget ranges breach these key price points, millions are at risk of being lost to the category. But for many a midweek glass of wine is an essential luxury.
Fran Draper, Marketing Director of Broadland Drinks, added: “Rising costs in production and transportation, as well as global supply chain pressures, mean familiar imported wine brands will be forced to increase prices beyond critical price points. These cost increases are seriously impacting wines produced outside of the UK, resulting in a clear opportunity for British Wine brands to provide UK shoppers with a recognisable, good tasting wine at a price that fits customers’ pockets. As the brand leader, Three Mills is the obvious choice to fulfil this need.”