Unless you attended a special three day course in a remote part of the UK in order to better understand the UK market and “power” of the “multiples” (to us in the USA, supermarkets) it is hard to understand the significance of the headline above. Basically, UK supermarkets attract customers by promoting wine at very low cost, driving down prices and effectively “training” the customer to always expect a low priced bargain. Many shoppers don’t even care about the varietal – they buy whatever is on promotion.
So I am reading Sainsbury’s is planning fewer promotions, as category manager Andy Phelps says it was not possible to sustain high levels of alcohol promotions given the higher inflationary cost pressures the industry is facing. The chain has run more than 2,299 wine deals in the past year, with compeitors Tesco offering 2,576 , Morrisons 1,682, Waitrose 1,342, and Asda 623