UK 'suffers slump in wine sales'

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Wine consumption in the UK fell 2% in 2008, according to industry analysts.

Mintel says public concern over binge drinking and rises in alcohol duty have caused a slump in sales which has put an end to years of growth.

It suggests wine companies will have to expand the market among 25 to 34-year-olds to ensure future growth.

However, the charity Alcohol Concern says little can be read into the figures because the fall comes against a backdrop of record consumption.

A report released in January by industry body Vinexpo revealed the UK was the world's biggest importer of wine, with 1.6bn bottles being brought into the country during 2007.

It said the economic downturn had led sales to drop 3.5% in the first nine months of last year and predicted market growth would halve to 6% by 2012.

However, Mintel said consumption had fallen by 30m litres to 1.16bn litres in 2008 - the equivalent of 40 million bottles.

Even though consumption may have gone down, the strength of wine has gone up over the years so it's probably having the same effect on people's health Nicolay SorensenAlcohol Concern

Senior Drinks Analyst Jonny Forsyth said: "People are starting to drink less in the UK, which runs counter to what people think when they read reports about binge drinking.

"People are increasingly more sensitive to healthy lifestyles and the government is using taxes and awareness campaigns to crack down on the effects of drinking."

Duty on a bottle of wine had increased 28p to £1.61 since 2007, he said.

Mr Forsyth did not blame the recession for the sales slump but said the wine industry would have struggled to maintain growth in any case.

He believes suppliers must target younger drinkers, aged 24 to 35, to encourage brand loyalty.

This age group had helped boost sales of rose, which increased its market value from £110m to £527m over four years, thanks to its "accessibility" - it is seen as less confusing for those who are not regular wine drinkers.

However, Nicolay Sorensen, director of policy and communications at Alcohol Concern, said people were still drinking too much.

"Even though consumption may have gone down, the strength of wine has gone up over the years so it's probably having the same effect on people's health."

The charity is pressing for a mandatory alcohol sales code to force retailers to improve information available to customers and prevent them using loss-leading promotions, such as selling three bottles of wine for £10.

On the topic of targeting younger drinkers, he added: "This is exactly what was happening about 10 years ago when marketing companies identified female drinkers as a potential growth group.

"We have seen consequently women's drinking go up and their alcoholic liver disease also go up to above the rate for the rest of Europe."