UK Wine and

Spirits: Market 2013

Overview

with data
supplied by
CONTENTS

THE UK ALCOHOL INDUSTRY 4

ŠŠ Value
ŠŠ Production in the UK
ŠŠ Premises
ŠŠ Employment

CONSUMPTION 6

ŠŠ Wine consumption per country - IWSR

ŠŠ Wine consumption per head - IWSR
ŠŠ Spirits consumption per country - IWSR
ŠŠ Spirits consumption per head - IWSR
ŠŠ UK alcohol consumption
ŠŠ European alcohol consumption

SALES - IWSR DATA 10

ŠŠ UK wine sales 2008 - 2012

ŠŠ UK wine sales by category 2012
ŠŠ UK wine exports 2010 - 2012
ŠŠ UK spirits sales 2008 - 2012
ŠŠ UK spirits sales by category 2012
ŠŠ UK spirits exports 2010 - 2012
ŠŠ UK wine sales by country of origin
ŠŠ UK wine sales by colour 2012
ŠŠ UK spirits sales by country of origin
ŠŠ UK spirits sales: relative market share

TAXATION 14

ŠŠ UK alcohol taxation
ŠŠ EU alcohol taxation

SOCIAL RESPONSIBILITY 16

ŠŠ Success statistics
ŠŠ Industry initiatives

UK STATISTICS 18

page 2
 The Wine and Spirit Market Overview 2013
WHO WE ARE

The WSTA represents over 340

companies producing, importing,
exporting, transporting and sell-
ing wines and spirits in the United
Kingdom.

We campaign for a vibrant and

sustainable wine and spirit industry, helping to build a future
in which alcohol is produced, sold and enjoyed responsibly.

IWSR

The IWSR quantifies the global market

for alcohol by volume and value, and
provides insight into short-term and
long-term trends. Globally, we track
overall consumption and trends at
brand, quality and category level for
wines, spirits and RTDs, with the aim
of providing data that is as accurate
and detailed as possible.

Our unique methodology allows us to get closer to what

is actually consumed and understand better how markets
work. The IWSR researchers conduct face-to-face interviews
with 1,500 companies around the world, tapping into local
expertise, with further input from 350 companies

page 3
THE UK ALCOHOL INDUSTRY

VALUE

PRODUCTION IN THE UK Source: ICG Research, 2013

213
registered distilleries
448
commercial vineyards

Scotland 131 wineries produced

3,020,445
bottles in 2011
England This equates to:

Wales

N Ireland
UK adults

SSource: HMRC Registrations, September 2013 Source: UK Vineyard Register, 2013 / Census,
2011 / WSTA analysiss

page 4
 The Wine and Spirit Market Overview 2013
PREMISES

204,684 licensed premises in the UK in 2012

Source: BBPA, 2013

26 MILLION people regularly drink wine in pubs, bars, and other on-trade premises

Source: Wine Intelligence, May 2011

Wine and spirits account for:

42%
of the value of alcohol
products sold in pubs,
bars and restaurants
Source: CGA Strategy, September 2013

EMPLOYMENT

650,000 people
employed in the production
and retailing of alcohol

1.1 million UK jobs

are supported in the wider economy
Source: Oxford Economics, February 2009

18% of direct employment in the European

spirit industry is in the UK - the highest
contribution of any Member State.

Source: CEPS & Ernst & Young, December 2010

page 5
CONSUMPTION - IWSR DATA

WINE*

CONSUMPTION PER COUNTRY

(000s of 9L cases) % change

1 China 697,359 +11

2 USA 336,869 +2
3 France 312,519 0
4 Italy 300,110 -2
5 Germany 285,368 0
6 UK 143,240 -3
7 Argentina 116,182 +3
8 Russia 105,259 -7
9 Japan 103,313 +4
10 Spain 101,610 -2
Source: The IWSR, September 2013 (2012 Sales figures)

*figures include still light wine, sparkling wine, light aperitifs, fortified wines and other wines

CONSUMPTION PER HEAD

(litres per person)

1 France 54.5
2 Italy 51.7
3 Switzerland 46.6
4- Slovenia 46.5
4- Portugal 46.5
6 Montenegro 43.2
7 Austria 41
8 Germany 38.3
9 Denmark 37.3
10 Argentina 35.4
-- ------
23 UK 25.9
Source: The IWSR, September 2013

page 6
 285,368
UK 143,240
Argentina
The Wine and Spirit
Russia
116,182
Market Overview
105,259
2013
SPIRITS Japan 103,313
Spain 101,610
CONSUMPTION PER COUNTRY
(000s of 9L cases) % change

1 China 1,168,835 +2
2 India 301,572 +21
3 Russia 260,751 0
4 USA 198,313 +4
5 South Korea 138,630 +4
6 Japan 126,748 0
7 Brazil 108,274 -1
8 Thailand 73,146 +8
9 Philippines 65,967 +2
10 Germany 48,254 -2
-- ---------
14 UK 30,711 +1
Source: The IWSR, September 2013 (2012 Sales figures)

CONSUMPTION PER HEAD

(litres per person)

1 South Korea 32.8

2 Russia 20.8
3 Estonia 17.1
4 Guyana 16.8
5 Kyrgyzstan 14.7
6 Belarus 13.9
7 Thailand 13.5
8 Bulgaria 12.2
9 Lithuania 11.7
10 Sri Lanka 11.2
-- ------
34 UK 5.5
Source: The IWSR, September 2013
page 7
CONSUMPTION

UK ALCOHOL CONSUMPTION

UNITS
Source: ONS Statistics on Alcohol, May 2012

15.9 7.6
units units

Average (mean) weekly Average (mean) weekly

male consumption female consumption

Average weekly consumption

11.5 units

LITRES PER HEAD*

Source: BBPA, March 2013

9.5
Total alcohol 9.4
9.2
consumption 9
8.9
fell by

16% 8.4 8.4

8.2
between 2004 8
and 2012

2004 2005 2006 2007 2008 2009 2010 2011 2012

*population aged 15 and over

PREFERRED DRINK

23% White wine 6%

19% of British adults drink
lager most often 20% Red wine 16%
12% Rosé wine 0%

18% of British adults drink

red wine most often
13% Spirits 9%
7% Vodka 6%
7% Lager 31%
17% of British adults drink
spirits most often 0% Bitter/ale 19%
Source: WDR, August 2013
10% Cider 9%

page 8
 The Wine and Spirit Market Overview 2013
EUROPEAN ALCOHOL CONSUMPTION
lpa per capita lpa per capita lpa per capita

-- Luxembourg* 15.3 13 Belgium 10.8 26 Greece 8.2

1 Latvia 13.2 14 Slovakia 10.7 27 Malta 7.7

2 Romania 12.7 15 Slovenia 10.3 28 Sweden 7.3

3 Lithuania 12.6 16 Denmark 10.3 29 Serbia 7.3

4 Austria 12.2 17 UK 10.2 30 Iceland 7.3

5 France 12 18 Poland 10.1 31 Italy 6.9

6 Ireland 11.9 19 Croatia 10.1 32 Norway 6.6

7 Germany 11.7 20 Switzerland 10 33 Macedonia 3.7

8 Hungary 11.5 21 Bulgaria 10 34 Turkey 1.5

9 Spain 11.4 22 Finland 9.7

10 Portugal 11.4 23 Netherlands 9.4 Ave

ra ge
11 Estonia 11.4 24 Cyprus 8.4
=1
12 Czech Rep. 11.4 25 Montenegro 8.3 0.7
*National sales do not accurately reflect consumption by residents lpa
due to the high volume of purchases by non-residents

Consumption in the UK is lower than

many of its European neighbours.

The
The UK ranks
UK ranks

17th
17th
in terms of alcohol
in consumption
terms of alcohol
per
head
consumption per
head LPA per capita
(15 years+)

over 12
10 to 11.99
8 to 9.99
6 to 7.99
below 6

...and
...and consumes
consumes
0.5lpa
0.5
below lpa
the average

Source: OECD, October 2012

below the average
Source: OECD, October 2012

page 9
SALES - IWSR DATA

WINE

UK WINE SALES 2008 - 2012

151,295 154,117 151,474 147,066 143,240

(000s of 9L cases)

UK WINE SALES BY CATEGORY 2012

Sparkling
Light Wine Wine
Year on Year -3%
Year on Year +3%
5 years -7%
5 years +5%

Fortified
Other Wines Wine
Year on Year +4%
5 years +41% Year on Year -1%
5 years -15%

Light
Aperitifs
Year on Year -7%
5 years -20%

UK WINE EXPORTS 2010 - 2012*

(000s) cases
2010 9,734

2011 9,638

2012 8,884
*all wine products including still, sparkling, fortified, light aperitifs and other wines

page 10 Source: The IWSR, September 2013 (2012 Sales figures)

 The Wine and Spirit Market Overview 2013
SPIRITS

UK SPIRITS SALES 2008 - 2012

29,592 30,160 31,189 30,921 30,711

(000s of 9L cases)

UK SPIRITS SALES BY CATEGORY 2012

Vodka Whisky
Year on Year 0% Year on Year -2%
5 years +6% 5 years -4%

Flavoured
Spirits Rum
Year on Year +3%
Year on Year -3% 5 years +14%
5 years +9%

Gin Brandy
Year on Year +2% Year on Year -1%
5 years +6% 5 years -8%

Tequila Cane *
Year on Year +13% Year on Year +16%
5 years +35% 5 years +77%
*Includes aguadiente, cachaça and other cane spirits

UK SPIRITS EXPORTS 2010 - 2012

(000s) cases
2010 103,610

2011 121,719

2012 118,669
*includes re-exports

Source: The IWSR, September 2013 (2012 Sales figures) page 11

SALES - IWSR DATA

WINE

UK WINE SALES BY COUNTRY OF ORIGIN

Volume % change
(000s of 9L cases) (year on year) (last 5 years)

1 Australian 24,096 -5 -18

2 Italian 18,694 -4 +15
3 French 18,093 -5 -15
4 USA 15,144 -6 -15
5 Spanish 13,836 +14 +40
6 Chilean 10,733 -8 +1
7 South African 9,726 +2 -11
8 New Zealand 5,181 +8 +72
9 German 3,873 -19 -47
10 Argentinian 2,316 +10 +8

Source: The IWSR, September 2013 (2012 Sales figures)

UK WINE SALES BY COLOUR 2012

% change
(year on year) (last 5 years)

rosé 14,754,000 9L cases -4 -5

red 54,193,000 9L cases -3 -8

white 56,470,000 9L cases -3 -6

Source: The IWSR, September 2013 (2012 Sales figures)

page 12
 +1
The Wine and Spirit Market Overview 2013 -11
+72
-47
SPIRITS
+8
UK SPIRITS SALES BY COUNTRY OF ORIGIN

Volume % change
(000s of 9L cases) (year on year) (last 5 years)

1 UK 9,449 -3 +1
2 French 1,956 0 -3
3 USA 1,710 +1 +12
4 Irish 1,308 -7 -16
5 Russian 626 +65 +296
6 Italian 297 +3 +36
7 Swedish 282 +6 -16
8 Mexican 198 +13 +35
9 Canadian 167 +22 +28
--- International* 13,844 -1 +3
*International is used when either the origin can’t be specified precisely or the product is made in various countries.

Source: The IWSR, September 2013 (2012 Sales figures)

The UK is the largest single country supplier of spirits to the UK market.

31%
of total domestic spirit consumption.

UK SPIRITS SALES: RELATIVE MARKET SHARE

6.3%
8.9% 29.9%
Vodka
Whisky
Flavoured Spirits
9%
Rum
Gin / Genever
Brandy
Tequila (0.6%)
Cane (0.1%)
19.6% National Spirits (0.05%)

25.6%

Source: The IWSR, September 2013 (2012 Sales figures)

page 13
TAXATION

IN THE UK

£329

£17billion
=
Tax paid by the alcohol industry
(Excise duty and VAT) Equivalent tax per UK adult

Source: WSTA analysis based on ONS and HMRC data, September2013

The UK wine and spirit industry is now one of

the most heavily taxed in the EU.

2nd 4th
highest highest
for Wine for Spirits

Source: WSTA analysis based on European Commission data, 2013

THROUGHOUT THE EU

WINE

Excise duty rates in the European Union - still wine

£ per 75cl bottle

over £1.50
£0.50 to £1.50
£0.01 to £0.50
£0.00 Sweden
Finland

Estonia

Latvia
Ireland Denmark
Lithuania

United Kingdom

Netherlands
Poland
Belgium Germany

Luxembourg
Czech Republic

Slovakia
France
Austria
Hungary
Slovenia Romania

Spain
Italy
Portugal
Bulgaria

Greece

Malta Cyprus

page 14 Source: European Commission, July 2012;

based on OECD, Eurostat and WHO data
 The Wine and Spirit Market Overview 2013

57%
of average bottle of wine
accounted for by tax

79 %
of the average bottle of vodka
is accounted for by tax
57% 79%
tax tax Since the alcohol duty
escalator was implemented
in 2008:
Wine taxation has
£5.00
(average price 75cl)
£11.80
(average price 70cl) increased by 50%
and spirits by 44%

Source: WSTA analysis, March 2013

SPIRITS

Excise duty rates in the European Union - Spirits

£ per 70cl bottle

@37.5% abv
over 10
5 to 9.99
2.50 to 4.99
up to 2.49 Sweden
Finland

Estonia

Latvia
Ireland Denmark
Lithuania

United Kingdom

Netherlands
Poland
Belgium Germany

Luxembourg
Czech Republic

Slovakia
France
Austria
Hungary
Slovenia Romania

Spain
Italy
Portugal
Bulgaria

Greece

Cyprus
Malta

Source: European Commission, July 2012; page 15

based on OECD, Eurostat and WHO data
SOCIAL RESPONSIBILITY

SUCCESS STATISTICS

The number of people reporting binge drinking (over 8 units for men
and 6 units for women) in the previous week continues to fall.
Binge drinking on at least one day of the week: from 2005 to 2011

MEN MEN WOMEN WOMEN

16 - 24 16 - 24

5% 10% 9% 3%
Source: ONS General Lifestyle Survey 2011, March 2012

More young people are abstaining from alcohol, and

those that have tried alcohol appear to be drinking less

12% 55%
of 11-15 year olds drank alcohol in of 11-15 year olds had never drunk
the last week (down from 26% in alcohol in 2011 (up from 39% in
2001) 2001)
Source: HSCIC Report on ONS Statistics on Alcohol: England 2013, May 2013

In 2010, just one third of young people agreed it is accept-

able for someone their age to drink alcohol once a week (down
from 46% in 2003)
Source: HSCIC Information Centre: Smoking, drinking and drug use among young people
in England 2010, 28 July 2011

90% of respondents had heard of units (up from 79% in 1997)

and 63% knew what a unit of each type of drink was (up from 47%
in 1997)
Source: ONS Statistics on Alcohol: England, 2013, May 2013
page 16
 The Wine and Spirit Market Overview 2013
INDUSTRY INITIATIVES
Charity established by the industry to change
the nation’s drinking behaviour for the better.

Social responsibility body for alcohol producers

which ensures alcohol is marketed responsibly.

Award scheme aimed at promoting responsible

operation of alcohol licensed premises.

Scheme aimed at raising standards and improv-

ing the quality of towns at night.

Drinks industry charity helping people in need

with grants, accomodation and support.

Responsibility Deal pledge: ‘...80% of products

Working on shelf by December 2013 will have labels with
with: unit content, NHS guidelines & a warning about
drinking when pregnant.

SPOTLIGHT: COMMUNITY ALCOHOL PARTNERSHIPS

Community Alcohol Partnerships (CAPs) are developed

within individual communities to tackle underage drinking
and related antisocial behaviour. They are tailored to suit
local needs and adopt different methods of best practice
depending on the nature and extent of the problem.

www.communityalcoholpartnerships.co.uk

Since 2007 over 50 CAPs have been set up across the UK. Each CAP is unique and is
a success story in its own right. Many have won awards for innovative partnership
working and/or the positive impact they have had on local communities.

DERRY GATESHEAD

54% 50%
drop in referrals to decrease in anti-social
the Youth Diversion behaviour in February
Officer between 2013 compared to the
2010 and 2012 same period in 2012.

ISLINGTON
BRECON
Youth alcohol related
40% accidents requiring the attention
of the London Ambulance Service
decrease in reports of
alcohol-related youth anti-social
behaviour between April 2012 and were halved in April to December
March 2013 2011 compared to the same period in 2010

Source: CAP Interim Reports, 2011-2013

page 17
OTHER STATISTICS

POPULATION (THOUSANDS)

2011 2020 2050 2011

Brazil 194,933
UK 61,761 66,754 76,959
China 1,348,010

EU 27 503,279 514,913 523,804 France 63,294

India 1,241948
WORLD 6,975,114 7,656,528 9,306,128 USA 311,592

Source: OECD Factbook 2013

UK under 15 2011: 17.4% UK over 60 2011: 22.7% UK population growth rate 2011: 0.68%

27.6 million households in the UK

Source: The Economist, World in Figures 2014 ed.

UK GDP

COMPONENTS
64% Private consumption
=£156 bn
22% Public consumption
15% Investment
32% Exports
Per head = £30,229 -34% Imports

Source: The Economist, World in Figures 2014 ed.

% of GDP

International trade in goods and services = 32.5% Total tax revenue = 35%

Government expenditure = 48.7% Government revenue = 40.5%

Source: OECD Factbook 2013

OTHER

£
UNEMPLOYMENT
% of population for May-July periods
5.5 7.9 7.8 8 8.1 7.7

Gross national income per capita

£22,547
2008 2009 2010 2011 2012 2013
Source: OECD Factbook 2013
page 18 Source: ONS, September 2013
The Wine and Spirit Market Overview 2013

SELECTED DATA KINDLY SUPPLIED BY:

www.iwsr.co.uk

254-258 Goswell Road

London EC1V 7EB
+44 (0)20 7689 6841
info@iwsr.co.uk
twitter: @theiwsr

DATA COMPILED AND DESIGNED BY:

www.wsta.co.uk

39-45 Bermondsey Street

London SE1 3XF
+44 (0)20 7089 3877
info@wsta.co.uk
twitter: @wstauk

If you have any comments, queries or suggestions please contact

Antonia Fordyce
antonia@wsta.co.uk
0207 089 3880

page 19
The Wine and Spirit Trade Association
International Wine and Spirit Centre
39-45 Bermondsey Street
LONDON SE1 3XF
t: (0)20 7089 3877
www.wsta.co.uk
info@wsta.co.uk
@wstauk

Registered Number: 410660 England

Limited by Guarantee
VAT Number: GB 243 8260 60