The majority of sommeliers will tell you that branded wine doesn't have much place in the on-trade, but Pernod Ricard UK is challenging that notion.
As distributor of brands such as Jacob's Creek, Brancott Estate, Campo Viejo and Graffigna, it's understandable that Pernod has been investigating the potential of branded wine in the on-trade, and it has reported some positive findings. For one thing, 79% of frequent wine drinkers drink branded wine when in the on-trade, with 54% saying that branded wines 'offered them an assurance of good taste'.
And while nearly half of consumers drink wine in the on-trade, branded wine only accounts for a third of total on-trade sales. In addition, the research showed that three out of five consumers rate the quality of branded wine as eight or more out of 10.
'We believe this indicates a huge opportunity for branded wine in the on-trade throughout 2016 and beyond,' said Ian Peart, on-trade channel director at Pernod Ricard UK, 'particularly as more than six out of 10 consumers (61%) also told us they perceived branded wines to be good value for money where available in the on-trade compared with non-branded offerings.'
He added: 'Our research also suggests that existing on-trade retailers who don't stock a good range of branded wine offerings are not only missing out on a lucrative sales opportunity but could even be putting their businesses at risk, with wine accounting for just 15% of volumes in on-trade outlets that are closing down, while successful new outlets are generating almost a quarter of their sales from the wine fixture alone, often leading the charge with key branded offerings.'
The research also showed that 72% of branded wine drinkers visit pubs at least once a month, compared to 64% of other wine drinkers.