Wine Report - corks v screw tops
Wine report - Cork versus screw tops
According to research, cork-sealed wines retail for £5.38 more per bottle than those with artificial closures, driving value into the on-trade.
Wines sealed with a cork are showing signs of ‘premiumisation’ in the on-trade, with consumers seemingly willing to pay more for their associated quality, according to the research from CGA.
Mark Newton, Senior Category Manager at CGA, said: “Overall, these figures suggest wines sealed with a cork may well be starting to show signs of ‘premiuminisation’ in terms of consumer and licensee behaviour. This is a trend which for some time has been a cornerstone of the spirits sector, and is now being seen within overall movements in wine consumption at higher price bands across the category.” The research, which analysed on-trade sales figures of the top 50 still wine brands (by volume) in the UK, found that the cork-finished wine brands retail at a significant price premium of on average £5.38 more per bottle than those with an artificial closure.
The research also demonstrated the price positioning gap between closure types is widening, with the retail price of cork closed wine increasing by over 11% since 2015, compared to +6% for artificial- closed wines, presenting an opportunity for licensees to trade customers up to a more premium choice.
Total distribution for wines sealed with a cork is also on the rise, growing +48% since 2015 (compared with +10% for artificial closures), suggesting an increased interest in offering wines closed with a cork.
Coupled with an increased sales value for cork- sealed wines in the last year of +17 (compared with +9% for artificial closures) the trend towards cork closures represents a significant profit opportunity for licensees and restaurateurs.
João Rui Ferreira, Chairman of Portuguese Cork Association (APCOR), said: “We already know there is a strong consumer preference for cork due to its association with quality wine. For the first time, these results clearly demonstrate the value this pre- sents to licensees, who can trade customers up and benefit from higher profit margins.”