More Change to Come for the Wine Trade?
Posted on Sun 21st Jun 2015 at 11:39
It may seem like the last thing we need is more change. Ever since the recession hit in 2008, the wine trade has been on a veritable rollercoaster, with many retailers closing as consumer demand trailed off.
The shrinking market also forced many companies to merge, in order to survive and better compete for business. It wasn’t all decline, however, as the wine supply to the UK also increased during this period, with 50% more countries now supplying wine to Britain. Although the market is now levelling out, speakers at the London Wine Festival predicted yet more change on the horizon. Michael Saunders, managing director at Bibendum PLC, said “what is going on at the moment is going to change the face of the industry. I don’t think this fair will look the same in two years’ time – there will definitely be more consolidation, as there is not enough margin in the game for the current way of business. I’m not saying the industry will be poorer for it either – it will just be different, more streamlined.” One of the big changes identified on the horizon is supermarket range consolidation, which will see the big retailers reducing the amount of wine on their shelves and focus on better presentation and communication of a smaller offering. This presents huge opportunities for those who can secure a place in the range, as they will benefit from better advertising and consumer engagement. With opportunities also increasing online, as more and more consumers are making wine purchases via the web, there is an exciting future available to those who have weathered the recession storm. For more details, see the Harper’s London Wine Festival round-up.