London, UK - Two decades after Paul Giamatti's character famously dissuaded audiences from Merlot in the movie "Sideways," the grape variety is facing another downturn, this time in the UK.
Recent data from CGA highlights a significant decline in Merlot's popularity within the premium wine market at bars and restaurants across the country.
Impact of "Sideways" Phenomenon
Following the release of "Sideways," which portrayed Merlot negatively, American markets witnessed a 2% drop in Merlot sales. Now, this trend has made its way across the Atlantic, with Merlot's market share in the UK on-trade declining by more than 2% since 2019. This decline is unmatched by any other major grape variety, underscoring a notable shift in consumer preferences.
Rise of Lighter Red Wines: Beaujolais and Beyond
Conversely, lighter red wines like Beaujolais have seen a surge in popularity among British wine enthusiasts. Sales of Gamay, the grape behind Beaujolais, have soared by 35% since 2019 in upscale establishments. The trend reflects a broader shift towards lighter, more nuanced red wines, possibly influenced by rising prices of Burgundy wines, prompting consumers to explore alternatives that offer both quality and value.
Diverse Preferences: Exploring New Varieties
Beyond Beaujolais, other red wine varieties gaining traction include Nebbiolo, Corvina, and Barbera, each capturing the attention of discerning drinkers seeking unique and distinctive flavors. Meanwhile, wines like Riesling, Semillon, Viognier, and Grüner Veltliner have also experienced robust growth, while Sauvignon Blanc and Chenin Blanc have seen declines.
Market Dynamics Amid Economic Challenges
The broader UK wine market has faced a 19% decline in on-trade sales since 2019, exacerbated by economic uncertainties including inflation, labor shortages, and increased wine duties. This has led to fewer consumers frequenting bars and pubs, opting instead to drink at home where supermarket and specialist wine store sales have surged.
Premium Market Resilience
Despite overall challenges, the top 5% of bars, hotels, and restaurants, defined as the premium market by CGA, have showcased resilience. Champagne has particularly thrived post-pandemic, surpassing pre-crisis sales levels. Conversely, Prosecco has seen its share of the premium market diminish by 15% since 2019.
Looking Ahead: Opportunities in Premium Segments
Tom Platt, CEO of Liberty Wines, remains optimistic about the premium segment's prospects. He believes that despite the market challenges, there is a continued appetite among consumers to explore and invest in higher-quality wines that deliver value and enhance the overall drinking experience.
Conclusion
As the UK wine landscape evolves, influenced by shifting consumer tastes and economic realities, Merlot's decline symbolizes a broader movement towards lighter red wines and diverse varietals. With opportunities in the premium sector and ongoing consumer interest in quality wines, the industry continues to adapt, offering new experiences and choices to wine enthusiasts across the country.
Source: Decanter