Publicans who do not stock branded wines could be missing out on an opportunity to boost cash sales, a report from drinks giant Pernod Ricard UK has found.
A survey conducted by the firm, whose wine brands include Jacob’s Creek and Campo Viejo, found that those who drink branded wine visit the on-trade more often than non-branded wine drinkers; 72% of branded wine drinkers surveyed stated they were likely to visit the pub at least once a month compared to 64% of those who drink unbranded wine.
Pernod Ricard also reported that 79% of frequent wine drinkers consume branded wines when out drinking, while 61% perceive them to be “good value for money” and 54% of survey respondents said branded wines have a “good taste”.
At present, one third of wine sales in pubs and bars is said to be branded wine, and Pernod Ricard reckons licensees who don’t stock brands could be missing out on “lucrative sales”.
Ian Peart, on-trade channel director at Pernod Ricard UK, said the survey results indicated “a huge opportunity for branded wine in the on-trade throughout 2016 and beyond”.
“Our research suggested 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 business 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,” said Peart.
“Our branded wine portfolio is well-placed to help on-trade outlets maximise the opportunity that our research shows clearly exists for branded wines in the on-trade.”