Bars bottle out
"Wine potential is vast in the on-trade." "All research results suggest that brands may be seriously under-represented in the on-licence sector." These are the headline conclusions of two separate research studies into wine in the on-trade. Both argue that the trade ought to be making much more of wine.
The first conclusion comes from Face Value - knowing the consumer, research carried out by the Waverley Group (01738 472000). Over the past decade wine consumption at home has grown by 86% and, significantly, 64% of those who drink wine at home drink it on its own. Contrast this with on-trade consumption, which has grown by just 40% and from a much smaller base.
So in the past 10 years the gap between the amount of wine consumed at home compared with that drunk in bars and restaurants has widened considerably, and at a time when wine has overtaken beer in popularity.
A staggering 70% of wine drinkers "default" in the on-trade and choose another drink. Most opt for either a spirit (32%) or draught beer (27%). Other options are bottled beer (13%), alcopops/PPS (10%), cider (6%), soft drinks (4%) and cocktails (3%).
Why do so many wine drinkers who confidently select wines in the retail sector choose another drink in a bar? The answer is mainly a question of time. In the supermarket or wine shop you have time to make a choice, while in a bar decision time is extremely short.
On average, people take five minutes in a supermarket to choose a wine. In a bar you have just 10 seconds - little wonder that home wine drinkers opt instead for a beer or a spirit.
Unfortunately there are usually very few wine cues in bars to help prompt a quick decision to choose a glass of wine. However, even before entering a pub or bar 22% of wine drinkers have already decided that they will not be choosing wine.
Is this because many bars and pubs do not take wine seriously? You could say it is perfectly normal for people to choose different drinks in different situations, except that with considerably better margins on wine than on beer and spirits, it is a missed opportunity.
Waverley concluded that there are six different types of wine drinker ranging from "the classic connoisseur", through "the adventurer" and "the easily pleased" to "the Chardonnay girl".
All have very different aspirations and tastes. Clearly it is important to know what type of wine drinker you attract and select wines that are likely to appeal to them.
The second research study, carried out by Southcorp Wines, Hatch Mansfield and Brown-Forman Wines, was into branded wine in the on-trade sector.
This study also noted the pressure to make a speedy decision in the on-trade. Furthermore it highlighted that there is often more at stake - for instance, not wanting to make a fool of yourself at a business lunch, either in front of potential clients or the sommelier.
Welcome reassurance
Well-known brands, particularly those from the New World, may provide welcome reassurance in these situations. A significant number of those questioned might choose a Jacob's Creek wine, or one from the Gallo range. Nearly half would consider Mouton Cadet.
"Overall, 86% of those questioned said they would consider buying a familiar, branded wine in a restaurant," says Simon Legge, marketing for Fetzer-Bonterra wines. "We are now preaching to wholesalers that they should reconsider the old chestnut that diners don't want to buy familiar brands in restaurants and that the on-trade needs exclusive labels. Instead brands can provide cornerstones, benchmarks and reassurance. It's difficult to persuade someone in a restaurant to pay £30 for a wine they've never heard of. Of course a wine list should not be made up entirely of familiar brands."
Giving familiar branded wines real visibility in pubs and bars may well be a substantial part of the answer to persuading wine drinkers not to defect to beer and spirits when faced with that 10-second "what am I going to drink?" decision. Make sure, however, that you select brands that are appropriate to your clientele.
