Pricey Wine Resists Slowing U.K. on Home Drinking, Nielsen Says

Sales of more expensive wine in the U.K. are resisting the slowing economy as more Britons drink at home, dissuaded from going out by last year's English smoking ban, according to market researcher Nielsen Co.

Sales of wine rose 5 percent during the past year, with the highest growth in varieties costing more than 5 pounds ($9.27) a bottle, Nielsen said in a report released today. Alcohol sales for consumption at home increased 3 percent in value during the 12 months ended Aug. 9, while sales in pubs and restaurants fell 8 percent in the 12 months through the end of May, Nielsen said.

``Consumers who are staying in to drink as an alternative to going out are treating themselves to more expensive wines,'' Jake Shepherd, Nielsen's marketing director, said in a statement.

Figures from the ``early summer'' show 2008 has been an even worse year for pub companies than 2007, Nielsen said. Mitchells & Butler Plc, Fuller Smith & Turner Plc and Enterprise Inns Plc have all said a slowing economy has spurred Britons to save money by buying alcohol in supermarkets. Drink sales have also been hurt by wet summer weather for two straight years, discouraging consumers from going out.

About 21 percent of consumers said they will spend spare income on going out, down from 30 percent the year before, according to a survey by Nielsen. Beer sales in pubs and restaurants fell 5 percent in value and 9 percent in quantity over the last year.

``With people cutting back on unnecessary expenses and another dreadful July and August weather-wise, we don't expect to see this trend alter,'' Shepherd said.