Irish people have drastically cut their consumption of wine following the introduction of the 50c levy in the budget.
Kantar Worldpanel’s latest supermarket monitor found more than 50,000 people have stopped buying bottles of wine as a result of the levy. Commercial director at Kantar Worldpanel, David Berry, said the rise in cost was responsible for people changing shopping habits.
“Increased duty on alcohol as part of the October budget has affected wine in particular, where the average price has increased by 16%,” said Mr Berry.
“As a result, 51,000 fewer shoppers have put wine in their baskets; while those who continue to buy have cut back by almost one bottle over the past 12 weeks,” he said.
Mr Berry said the price of fresh vegetables had been a driver in increasing the cost of food earlier in the year but that the price of fresh goods had actually fallen in recent weeks. As a result of price variations, the overall value of the grocery sector has shrunk over the year.
“Fresh food has been the main driver of price inflation over the past year and this has now started to recede; for example vegetables are now cheaper on average than they were last year. This drop in price inflation has caused the value of the grocery market to slip into year-on-year decline, following six months of sales growth as consumers continue to focus on value and savvy shopping,” he said.
When broken down into how each of the retailers had performed individually, Aldi was the biggest winner, recording a 19% rise in its market share. Nevertheless this was the first time since the discount retailer’s arrival in Ireland that it had recorded less than 20% growth.
Tesco recorded the largest fall in market share, suffering a 6% decline but remains the largest retailer in the country, with 26.5% of the market.
Dunnes performed ahead of the market for the third successive month, and has grown its market share from 23.0% to 23.6%.
SuperValu’s share of the market has increased slightly with sales remaining in line with last year.
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