A little wine knowledge goes a long way down the high street

The face of the High Street may have changed for ever last year with the demise of so many specialist off licences, but their loss has opened a door for independent c-store retailers with the enthusiasm to succeed where the chains failed.

Supermarket pricing may be under scrutiny, but for now they have a price advantage few smaller operations can match. However, E & J Gallo Winery's channel controller of UK impulse David Mallory says there's been a shift in emphasis since last year's shake-up. "During 2009, the UK wine industry was focused on value relating to price, due to the economic climate, but 2010 needs to be about value relating to both price and quality if the industry is to generate sustained profitable growth," he says. "Customers are looking to familiar brands that they know they can trust, so our plan is to offer value through improved quality, which will deliver superior value for money."

Philip Amps of Amps Fine Wines in Peterborough is a wine specialist. "A lot of customers are interested in what's in the bottle, so make your offer interesting," he says. "It doesn't have to be about price point it can be about personality."

There's also been a move towards more indulgent home consumption. Research by the Wine & Spirit Trade Association shows consumers are willing to spend more on a bottle of wine to drink at home, with a 30% increase in the number of regular wine drinkers paying more than £7 per bottle, a trend to please impulse retailers.

Clare Griffiths, VP European consumer marketing for Constellation Europe, confirms that shoppers are continuing to buy wine despite the tough economic climate, with value sales up 6.4%. "We expect to see continued growth of the category within the UK convenience channel," she says.

But like any category, wine won't sell all by itself and the fixture requires a regular critical eye from the retailer. "You have to review your range and give some thought to your wine offering well in advance so that you are stocked up on the right brands, at the right prices, in time to capitalise on lucrative sales during the warmer months when al fresco entertaining will peak," Griffith adds.

Mallory believes that wine, particularly recognised brands, remains one of the c-store's strongest offers for last-minute gifts for this summer's celebrations. "Displaying wine out of section will ensure that all customers will have the opportunity to see what you have available and increase impulse purchases," he says. "Regularly updating displays at the front of the store with new and interesting wine encourages shoppers to try something new and may result in them trading up."

The weather aside, it's money worries that will bring consumers back to the local shop. A poll of UK wine drinkers by Wine Intelligence suggests more consumers are choosing to spend on wine at home with a meal rather than spend on a night out. It shows that 13% of regular UK wine drinkers now spend more than £7 per bottle of wine compared with 10% last year.

The appeal of rosé, the star performer of recent years, shows little sign of waning. Indeed, Constellation's Griffiths says 87% of total volume growth in recent years is attributable to rosé.

Alvin Saal, brand manager for Mateus Rosé, adds that now is traditionally a very strong sales period for rosé. First Drinks is putting "significant investment" behind the brand, which saw 12% value growth last year, with a neck collar promotion offering a chance to win a holiday in the Algarve.

Constellation has a rosé offering built around Echo Falls Spritz, Hardys, Kumala and the newer Chilean brand, Gran Tierra. It has recently added Mondavi Woodbridge Shiraz Rosé.

Gallo Family Vineyards main promotional push this summer is for the Gallo Rosito, a combination of white grenache, ginger ale and summer fruits. It recommends displaying the wine alongside ginger ale to demonstrate its versatility to impulse shoppers.

Adding a few bubbles won't hurt sales, either. The sparkling wine market is currently worth £328m and is growing at 11%, according to Nielsen, and the sparkling rosé wine category is growing at about 16% year on year. Australian wine brand Wolf Blass has added a new sparkling rosé to its Yellow Label range this summer to capitalise on this growing popularity.

"Branded sparkling wine is now a must stock for all retailers, but especially during the key summer sales period," says Neil Barker of supplier Foster's EMEA.

CWF says consumer demand for Prosecco has risen significantly over the past two years, and has introduced Casa Gheller. It's a Prosecco DOC Frizzante (lightly sparkling) in a screwtop bottle, rrp of £6.99. CWF's Vicky Lee says: 'It's a well packaged and good value wine at a time of increasing interest in this style."

For stores looking for a pricing offer to match the supermarkets, Landmark Wholesale trading controller John Fergusson-Cooper believes the group can offer wines with the right balance of price and quality. "We are introducing a number of value wines which we believe will be perfectly suited to our present trading environment. Although value was the prime driver in the selection of these wines, the quality of the range will make sure that consumers will keep coming back for more."

The first of these is La Flamenca, available in red, dry white, medium white and rosé. It's a "price fighting" Spanish wine which Fergusson-Cooper says can be sold at £3.49, giving a margin of 16%, or as a '3 for £10' offer at 12%.