California wine overtakes France in Sainsbury's

California has overtaken France to be the second most important wine region in Sainsbury's stores.

Australia remains the biggest source of wine for the supermarket giant, accounting for 27% of sales, but the strong year-on-year growth seen in recent years for wines from ‘down under’ has slowed to 2% in 2008.

This slowdown has been blamed on the small 2007 Australian vintage and the subsequent rise in prices. Sainsbury’s is confident the situation will ease, with a return to more normal harvest levels in 2008 and an easing of prices.

California wines sales in Sainsbury’s are growing at 3.3% per year and in the last month the region has overtaken France in volume terms.

Wine buyer Daniel Bracegirdle said most of this growth is being driven by brands such as Gallo and Blossom Hill, as well as by sales of the Fish Eye range, which is an exclusive line for Sainsbury’s.

The retailer has recently launched two variants under the Beringer Stone Cellars label and sales are said to be “very encouraging”.

“The quality and distinctiveness of California premium wines continue to provide our customers with a great opportunity to trade up from the big brands that dominate California sales,” said Bracegirdle.