Consumers are cutting back their spending on wine and buying into more promotions as the credit crunch puts more pressure on them financially, according to a new survey.
The Wine and Spirit Trade Association (WSTA) found people are moving away from £5 and £6 wines and more are spending less than £5 on a bottle.
Of those polled, 72% said that the number one factor in determining what wine they buy is now promotions, moving grape variety into second place.
Typical off-trade spending on wine is down, the WSTA said, by 12p for everyday varieties and 20p to 30p for special occasions.
Chief executive Jeremy Beadles said: “These figures testify to the harsh reality facing millions of consumers with budgets squeezed and increasing pressure to reduce spending where possible.
“The survey reinforces our view that continuing steps to push alcohol prices up using tax as a blunt weapon are wholly inappropriate.”
Asda this week said that Champagne continues to be popular in its stores despite the economic downturn, as sales of the drink rose by 4.5% in 12 weeks until 4 October.
