VITeff Veille

United Kingdom

British wine production

722 hectares of vineyards in production.

339 commercial vineyards.

106 wineries.

Average production: 1 459 800 litres.

Location of vineyards: southern England and Wales; mainly small surface areas.

6 grape varieties recommended by the European Union, including Bacchus which accounts for 70 % of areas planted with vines.

The main players in the industry are:

• UKVA (the United Kingdom Vineyards Association) is the official organisation representing the wine producing industry in Britain and abroad.
  
  
• EWP (English Wine Producers), an organisation made up of the main independent wine growers for the purpose of promoting their wines in the media, to trade and to consumers.
  
  Wine consumption
  
  A very large market of strategic importance for producers worldwide, and one that is highly competitive and discriminating. The volume of wine sold in 2002 was 620 080 100 litres. The market is equally split between red and white wines.
  
  The largest exporters of wines to the United Kingdom are France and Australia. In 2004 the volume and value of imports of Australian wines overtook those of French wines on the British market. In 2005 the volume of French wines imported by the U.K. was 226 million litres, accounting for 17.3 % of the British market. The volume of Australian wines imported was 274 million litres, or 21 % of the market. French and Australian wines do not appeal to the same segment of the market, the former selling to more traditional of specialised consumers, the latter to the wider public.
  
  New World wines (from Australia, Argentina, Chile, California, South Africa) are increasingly popular (with their image of honesty, energy and youth). Their share of the market is increasing at the expense of European wines (from France, Italy and Germany) which in contrast have an image of snobbishness, arrogance and expensive.
  
  Most wine (80 % of the market) is consumed at home.
  
  The price of a wine is important, as it gives some indication of its quality. British consumers are wary of very low prices.
  
  The market in sparkling wines
  
  About fifty vineyards produce sparkling wines. The main areas of production are Middlesex, West Sussex, Kent and Somerset.
  
  Imports: France has 40 % of the market in volume and 80 % in value. Its main competitor, Spain, has 26 % of the market in volume, but only 6 % in value.
  
  The United Kingdom is the second largest importer of sparkling wines, with 64 million bottles (2003) and the main outlet for exports from France (28 % of French sparkling wines).
  
  Sales of champagne to the United Kingdom approached 35 million bottles in 2004 (record year).
  
  According to recent studies, the market in sparkling wines is expected to grow spectacularly in the next three years to reach 600 million pounds sterling. Australia and New Zealand wines should benefit from this renewed interest in sparkling wines by British consumers.
  
  Source: VITI Vins Effervescents, October 2004, CIVC information bulletin - 1st quarter 2005 and E lettre Vinimarket no. 23 - 7 December 2005